India’s gaming boom faces funding, talent, monetisation hurdles: GDAI report

CHENNAI: India’s gaming industry must bridge the gap between its expanding player base and the ability of domestic studios to build commercially successful, globally competitive games, with inadequate funding, limited publishing support and gaps in industry-ready talent emerging as major constraints, according to a report released by the Game Developer Association of India (GDAI) on Wednesday.

The report, GameDev Outlook 2026, launched at the India Game Developer Conference at Chennai Trade Centre here, estimates that India’s video-game market generated $1.04 billion in revenue in 2025, growing 14.8% year-on-year and reaching 511 million players.

However, annual revenue per user stood at just $2.04, highlighting the challenge of monetising this expanding audience. Based on responses from 104 industry participants and 13 academic institutions, alongside stakeholder consultations, the report found that 82.7% of surveyed studios prioritised launching new intellectual property (IP), while 49% aimed to enter international markets.

Raising capital or securing publishing deals was a priority for 38.5%, while 75% identified capital and publishing investment as barriers to growth. The talent gap compounds the challenge.

While 54.8% of surveyed studios planned to expand their teams over the next two years, 56.7% of industry respondents considered fresh talent poorly prepared or unprepared for production requirements. Further, 51.9% reported difficulties attracting international partners.

“India’s biggest advantage in gaming is its young and diverse creative base with strong original-IP ambitions,” GDAI chairperson Sridhar Muppidi said, stressing the need for funding at every stage and education centred on practical team projects.

The report noted that 41.3% of industry submissions came from Tier-II and Tier-III locations. It also highlighted opportunities beyond battle royale games, with female participation approaching half of the player base. The Union Budget 2026-27 proposed Rs 250 crore for content creator laboratories in 15,000 secondary schools and 500 colleges.

PhonePe Appstore chief business officer Priya Narasimhan said that user acquisition remained a formidable hurdle, underscoring the importance of understanding player behaviour and strengthening distribution. The report called for coordinated action on financing, skills, production, publishing and market access to help Indian studios build sustainable businesses and reach global audiences.