India’s gaming & esports industry in 2026: Government recognition to global wins

As India’s gaming and esports ecosystem is going to enter 2026, the industry is on the brink of another major shift. With 500M+ gamers, rising player spending, Promotion & Regulation of Online Gaming Act (PROGA) reshaping the regulatory landscape, massive brand participation, and global recognition for Indian teams and creators, 2025 became the year the sector broke into the mainstream.

The Tech Panda reached out to esports industry experts to find out what’s ahead for India’s gaming, esports and interactive entertainment economy and how the ecosystem is expected to evolve in the coming year.

2025 is being called the breakthrough year for Indian gaming and esports, from government recognition to global wins. But what makes this year a true turning point for the industry? With the PROGA rolling out, 2026 will see India’s first structured regulatory framework for digital gaming and esports.

Akshat Rathee, Co-founder and MD of NODWIN Gaming, says 2025 has been the year India truly legitimized gaming and esports as a sport, a career, and a creative industry.

“The year 2025 was about validation and vision, a year where esports became a recognized sport, a scalable business, and a source of national pride,” — Akshat Rathee, Co-founder and MD of NODWIN Gaming

“The passing of the PROGA and the formal inclusion of esports under the Ministry of Youth Affairs & Sports (MYAS) gave the ecosystem long-awaited clarity and structure. For the first time, esports is being treated at par with traditional sports, complete with frameworks for athlete recognition, structured leagues, and policy support,” he says.

“We’ve also witnessed state-backed tournaments across Maharashtra, Tamil Nadu, Bihar, Rajasthan, and Chennai, marking the beginning of esports being built into India’s sports ecosystem from the grassroots up,” he adds.

At the same time, 2025 was a year of cultural and commercial validation. Indian players competed and won on the world stage, with Ved Bamb becoming India’s first-ever esports world champion at the Pokémon GO World Championship.

NODWIN Gaming’s own flagship IPs pushed boundaries as BGMS Season 4 drew millions of hours watching of record-breaking viewership, DreamHack 2025 witnessed great footfalls and NH7 and Comic Con India expanded to more cities than ever before, creating nationwide festivals of music, gaming and youth culture.

“2025 also marked a strong resurgence for PC esports in India with Valorant Challengers South Asia (VCSA) clocking over 103 million live and non-live views and drawing over 12 million views and more than 50,000 peak concurrent viewers in the LAN finals, reaffirming that competitive gaming in India extends far beyond mobile titles and is gaining serious traction across platforms,” Rathee added.

He reiterates that equally transformative was the rise of Indian developers. The Indie Game Utsav 2025, powered by NODWIN Gaming, spotlighted homegrown creators building uniquely Indian stories and gameplay experiences.

“India is starting to  produce exportable creative IPs of its own. The year 2025 was about validation and vision, a year where esports became a recognized sport, a scalable business, and a source of national pride,” he states.

Vishal Parekh, COO of CyberPowerPC says the growth of Indian gaming has been years in the making, but 2025 has added a real sense of pace and purpose to that journey.

“Gaming in India is evolving from an emerging trend into a structured ecosystem with real career and creative potential.” — Vishal Parekh, COO of CyberPowerPC

“The ecosystem continues to gain structure, recognition, and direction, thanks to key developments like the PROGA and the inclusion of esports under the Ministry of Youth Affairs & Sports. These steps have brought long-awaited clarity, creating a stronger sense of legitimacy for players, creators, and brands.

“What’s most exciting is the kind of momentum we’re now seeing at the grassroots level. Across the country, state governments are backing esports tournaments, schools and colleges are hosting competitive leagues, and communities are coming together to celebrate gaming as both skill and culture. It’s a clear signal that gaming in India is evolving from an emerging trend into a structured ecosystem with real career and creative potential,” he says.

This year, CyberPowerPC India, focused on providing the necessary tailwinds to strengthen that foundation. The Esports Masterclass series was built to guide gamers and parents through this fast-evolving landscape. The Play Guarantee campaign empowered gamers through transparency and trust.

The company also brought an experiential gaming showcase to Comic Con Bengaluru this year, giving fans a chance to explore high-performance systems, connect with the team, and immerse themselves in the world of PC gaming.

“Experiences like these remind us how vibrant and creative this community truly is,” says Parekh. “For us at CyberPowerPC India, this year has been about progress, partnership, and purpose. The policy groundwork is finally in place, but the future of Indian gaming will be shaped by collaboration, between brands, educators, and the community. Our vision at CyberPowerPC India is to keep building that ecosystem from the ground up, where every gamer feels seen, supported, and ready to play.”

Krish Anurag, Managing Partner at Chimera VC and Founding Partner at LVL Zero, says 2025 marks the year India’s gaming industry truly scaled from enthusiasm to structure.

“Financial plumbing is quietly fueling the next leap in player monetization and live-ops viability.”— Krish Anurag, Managing Partner at Chimera VC and Founding Partner at LVL Zero

“We now have scale, spend, and supply coming together, the three pillars of a sustainable ecosystem,” he explains. “On the demand side, India’s online gamer base touched 488 million players in 2024 (FICCI EY 2025) and continues to expand with higher digital payment readiness. The fact that UPI accounts for 83% of all digital payments in India and nearly half of the world’s real-time transactions has made in-game micro-payments frictionless. That financial plumbing is quietly fueling the next leap in player monetization and live-ops viability.”

“On the supply side, studios are moving beyond service work and hyper-casuals toward PC, console, and cross-platform titles,” he adds.

Pre-registration data at LVL Zero shows an increase in teams targeting multi-platform releases with stronger demo and prototype completeness, a sign that India’s creator base is maturing fast.

Then came the regulatory reset.

“PROGA and earlier GST clarity have helped separate skill-based gaming and esports from money-based games. This clarity redirects both capital and attention back toward core gaming, development, and exportable IP,” he explains.

“Add to this the rise of esports-grade cafés across India, global wins by Indian athletes, and strong government support and 2025 becomes the first year where India’s gaming sector looks like a long-term industry, not just a moment,” he adds with enthusiasm.

This year, LVL Zero launched India’s first equity-free gaming incubator alongside Nazara Technologies, MIXI Global, and Chimera VC.

“Our goal is to build the foundation, converting early-stage creators into investable studios through mentorship, credits, and funding. Together, these shifts make 2025 the year India stopped looking outward for validation and started building inward for scale,” he concludes.

Animesh Agarwal, Co-founder and CEO of S8UL Esports, feels this year is the moment Indian gaming finally came into its own. “For the first time, the industry isn’t trying to prove itself,  it’s being recognised for its potential. Esports has moved from the sidelines into the mainstream, and that change has been driven by players, creators, and fans working together over years of effort,” he says.

“The passion you see across the community is what defines this year. It feels less like an industry and more like a movement, one that represents creativity, competition, and the voice of India’s youth,” — Animesh Agarwal, Co-founder and CEO of S8UL Esports

“You can see the difference everywhere. The government has formally acknowledged esports, brands are investing with long-term vision, and new tournaments are building excitement at the grassroots level. What used to be a scattered community now feels like a connected ecosystem that knows where it’s heading,” he adds.

For S8UL, 2025 has been about growth, validation, and connection. Being selected as a Club Partner for the Esports World Cup was a proud moment that reflected how far Indian esports has come. Also, their multiple nominations at the Esports Awards showed that Indian teams and creators can compete globally, while Indian on-ground events proved how strong the fan culture is at home.

“The passion you see across the community is what defines this year. It feels less like an industry and more like a movement, one that represents creativity, competition, and the voice of India’s youth,” he says.

Rohit Agarwal, Founder and Director of Alpha Zegus, believes 2025 will go down as the year India’s gaming industry truly professionalised.

“Esports has moved from side stage to main stage- from youth hobby to national identity. That’s why 2025 isn’t just another milestone. It’s the year gaming stopped being a “category” and became an industry in itself,” — Rohit Agarwal, Founder and Director of Alpha Zegus

“For the first time, the government has drawn a clear legal line between esports, casual gaming, and real-money formats under the Online Gaming Act, 2025. That single decision has unlocked confidence for global investors, non-endemic brands, and even state tourism boards that had been hesitant to associate with gaming due to regulatory ambiguity,” he explains.

“On top of that, Indian teams are winning internationally- the Free Fire MAX India Cup 2025, BGMI’s return to global play, and growing viewership on YouTube Gaming and Rooter- all point to an ecosystem that’s maturing at both ends: grassroots and professional,” he adds.

The Indian gaming market, valued at US$3.8 billion in FY24 and projected to cross $9.2 billion by FY29, is now being driven by quality, IP, and structure rather than just user volume.

“Esports has moved from side stage to main stage- from youth hobby to national identity. That’s why 2025 isn’t just another milestone. It’s the year gaming stopped being a “category” and became an industry in itself,” he reiterates.

Rohit Jagasia, Founder and CEO of Revenant Esports, says, “2025 has been a defining year for Indian esports – performance, partnerships, and creators all leveled up together. Indian teams proved we can compete globally, publishers invested deeper, and brands shifted from experiments to long-term commitments. At the same time, creator-led content and merch-driven fandom showed the true commercial potential of gaming culture in India. We’re no longer growing teams in isolation; we’re building a sustainable, culturally relevant esports ecosystem from India to the world.”

“We’re no longer growing teams in isolation; we’re building a sustainable, culturally relevant esports ecosystem from India to the world.” — Rohit Jagasia, Founder and CEO of Revenant Esports

As India’s gaming and esports ecosystem moves into 2026, the momentum built in 2025 marks more than a breakout moment, it signals permanence. With regulatory clarity, global competitive success, stronger grassroots pipelines, and rising homegrown IP, gaming has transitioned from subculture to structured industry. The year ahead will be about execution, scaling talent, building sustainable businesses, and turning India’s massive player base into a globally influential force in interactive entertainment.