India’s esports shifts ‘from confusion to clarity’, expert says
India’s esports industry is entering a defining phase, driven by regulatory clarity and rapid ecosystem expansion. Following the Promotion and Regulation of Online Gaming Act (PROGA) 2025, which formally separated esports from real-money gaming (RMG), the sector is witnessing renewed investor confidence and institutional backing.
The shift comes amid strong growth across the broader gaming economy. According to a report by PwC, India’s online gaming and esports segment is projected to grow at a 19.2 percent compound annual growth rate (CAGR) to reach $4.8 billion by 2028. Meanwhile, data from Statista estimates that the number of users in the esports segment alone is expected to approach 148 million by 2029.
As policymakers, brands, and global operators sharpen their focus on India, the esports ecosystem is moving from fragmentation to structure. In an exclusive conversation with SiGMA News, Tapasya Shukla, Founder and Managing Director of Zutsu Media, an esports organisation, says that policy clarity, capital inflow, and talent development are beginning to align, signalling a more mature phase for the industry. “We’re finally moving from confusion to clarity,” she says.
Shifting dynamics
SiGMA News: How is the relationship between esports, gaming, and iGaming expected to evolve in the coming years?
Tapasya Shukla, Founder and Managing Director, Zutsu Media: The relationship is maturing from a blurred convergence into highly distinct, specialised verticals. For the longest time, the broader market conflated esports, casual gaming, and iGaming because they all happened on a screen, but that era is over.
Over the next three to five years, these ecosystems will diverge in their commercial models while continuing to collaborate on shared technology infrastructure. The unmatched retention and visibility esports offers, particularly in the B2C segment. As gaming cements itself as a mainstream digital behaviour, iGaming will continue to refine its high-average revenue per user (ARPU), transactional model.
Esports, on the other hand, is building long-term cultural and brand capital through community loyalty and publisher-backed intellectual property (Ips). Because of this divergence, the way brands interact with the space must evolve. In the coming years, we need more standardised infrastructure that allows brands to collaborate seamlessly with esports athletes, platforms, and organisations.
We are also outgrowing niche digital targeting. To truly reflect this shift, esports collaborations should start commanding space in traditional formats like billboards and out-of-home media. Taking the industry into these highly visible spaces will increase awareness and help the broader public understand the scale of esports inviting them to be part of this evolution.
SiGMA News: India’s 2025 online gaming law separates esports from real-money gaming. Will this accelerate growth or create new challenges for the ecosystem?
Shukla: This is a correction, not a contraction. The PROGA, marks one of the most significant structural milestones for the industry. For years, the lack of mainstream understanding, combined with the prevalence of RMG, meant esports was widely misunderstood. RMG carried serious drawbacks, particularly around financial risk and addiction, which impacted many young users. In contrast, esports is rooted in competitive skill, and India has immense talent across regions that needs to be nurtured rather than conflated with games of chance.
Now that regulatory uncertainty and arbitrary restrictions are easing, this legal separation is a major step forward. The law explicitly distinguishes esports as skill-based competition while restricting money-based gaming activities, helping create a clearer and more structured ecosystem. This clarity also creates a cultural mandate. There is a need to educate not just Gen Alpha, Gen Z, and Millennials, but also older generations. Esports is not gambling; it is a legitimate, aspirational career path where athletes compete globally, build personal brands, and grow as digital creators.
The growth trajectory reflects this shift. In 2021, the Indian esports market was valued at around $33.5 million. By 2025, it has crossed $200 million, driven by mobile-first adoption, 5G expansion, and talent emerging from Tier-II and Tier-III cities. Based on current momentum, the market is projected to reach between $640 million and over $1 billion by the early 2030s, growing at roughly 18 percent annually.
This regulatory clarity also de-risks the ecosystem for institutional investors. With RMG restricted, corporate budgets and venture capital are increasingly pivoting toward competitive gaming, supported by rising tournament activity and continued funding for esports operators.
Ultimately, brands and investors can now participate with greater confidence, as the future of Indian esports is built on sustainable, legally recognised competition.
Regulation reshapes landscape
SiGMA News: How could the Union Budget’s focus on the Animation, Visual Effects, Gaming and Comics (AVGC) sector and the creator economy impact esports in India?
Shukla: This is a profoundly strategic move. The creator economy has reached a scale where it can no longer be ignored and is increasingly shaping how digital ecosystems function.
Esports is often misunderstood as being limited to players. In reality, players represent only a fraction of the ecosystem. The core economic engine lies in the broader production layer, casters, editors, streamers, animators, and technical teams that build immersive digital experiences.
The push to establish creator labs across 15,000 schools and 500 colleges directly supports this ecosystem. It builds the foundational talent pipeline required to sustain esports at scale, while also positioning digital content creation as a structured and viable career path.
As brands increasingly move toward more immersive and contextual engagement, the demand for high-quality creative talent will continue to grow. These initiatives are likely to play a critical role in enabling that shift.
Ultimately, this acts as a catalyst for the entire esports ecosystem by strengthening its underlying infrastructure, talent base, and long-term sustainability.
SiGMA News: Does hosting international esports events indicate India’s readiness as a global hub, and what more is needed to sustain growth?
Shukla: Yes, this signals clear progress, but understanding India’s readiness requires looking at the broader structural approach and comparing it with global models.
Some markets, such as the UAE, have adopted a capital-heavy, infrastructure-led model, investing significantly in arenas and large-scale venues to attract global events. India’s approach is fundamentally different. It is driven by a grassroots, demographic-first model built on a large and organically growing gaming population.
India already has a massive gamer base, creating a strong domestic audience that global markets cannot easily replicate through infrastructure alone. This provides a natural foundation for long-term ecosystem growth.
The current strategy focuses on building the underlying ecosystem, developing talent, strengthening intellectual property, and integrating esports into broader digital and creative industries. Policy initiatives and institutional efforts are aligned toward creating a sustainable pipeline of developers, creators, and production professionals.
As a result, when global tournaments come to India, they are not just entering a venue but tapping into a growing and self-sustaining digital economy.
To consistently attract and sustain world-class events, the focus now needs to remain on reducing operational friction, such as streamlining esports visas and ensuring clear tax frameworks for international prize pools, while continuing to strengthen the domestic ecosystem. India is moving beyond being a host market and is positioning itself as a long-term contributor to the global esports economy.
This is Part 1 of a two-part interview series with Tapasya Shukla, Founder and Managing Director, Zutsu Media, where the focus is on India’s evolving esports ecosystem, covering regulation, market structure, policy push, and global positioning. Part 2 will examine the consumer and industry dynamics shaping the space, including brand strategy, audience behaviour, and career sustainability.
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