India’s gaming and esports: what comes next in 2026
India’s gaming and esports sector enters 2026 as a mainstream industry facing the challenges of professionalisation, regulation, and large-scale monetisation. There are currently over 500 million gamers in the country, and player expenditure has surpassed $1 billion. India is now positioned as a test case for how a mobile-first market evolves into a global powerhouse, following new government regulation that explicitly separates esports from money gaming. The implementation of PROGA, the inclusion of esports within the national sports system, and intensifying competition between companies, developers, and creators for market share will define the year ahead.
PROGA implementation reshapes market
The Promotion and Regulation of Online Gaming Act, 2025 (PROGA), establishes India’s first centralised framework distinguishing unlawful money games involving betting and wagering from esports and online social games. With the exception of real-money wagering, the Act empowers the central government to establish an Authority on Online Gaming, license platforms, define esports events, and issue regulations for training academies and safe social gaming content.
Union IT Minister Ashwini Vaishnaw explained that the government’s new Bill categorises online gaming into three segments: esports, online social games, and online money games. He stated that esports gaining global recognition and potentially featuring in events such as the Olympics along with social games like Sudoku and Chess, are beneficial to society and will be promoted. In contrast, he described online money gaming as harmful, citing cases where young people lose their savings and families experience severe financial distress.
Vaishnaw stated, “Online money gaming is causing significant harm to society. Frequently, middle-class families lose their entire life savings. It’s really painful, and there are so many cases where people who lose money commit suicide. All these things are causing major harm to society, which is why this Bill has been introduced, to encourage and promote the two segments that are good for society and regulate the segment that is harmful.”
Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, described 2025 as a turning point for India’s gaming and esports industries, noting that esports are now recognised alongside traditional sports, with structures for athlete recognition, organised leagues, and regulatory support. He added, “For the first time, esports is being treated on par with traditional sports, supported by clear frameworks for athlete recognition, structured leagues, and policy backing.”
India steps onto global esports stages
Indian teams and athletes are expected to move from participation to podium finishes in both single-title and multi-sport competitions in 2026. Indian line-ups will compete in esports alongside traditional sports at the 2026 Asian Games as a medal event. Following strong performances in the 2024–25 qualifiers for strategy, football simulation, and battle royale titles, more Indian teams are likely to feature in international tournaments such as the Nations Cup 2026 and the Esports World Cup.
S8UL has become the first Indian organisation selected as a Club Partner for the Esports World Cup 2025 in Riyadh, joining 40 global teams. The organisation has committed rosters across multiple titles, including PUBG Mobile, VALORANT, EAFC 25, Apex Legends, Tekken 8, and Chess.
Co-founder Animesh “Thug” Agarwal described the selection as a landmark moment for Indian esports, stating, “This is a defining moment for Indian esports. Our entry into titles like EAFC, Warzone, Apex, Tekken, and Chess is not just participation, it’s a statement. S8UL is going global. We’re stepping into arenas that many never imagined an Indian organisation could enter, and we’re doing it with heart, skill, and intent. We’re not just here to play, we’re here to make a mark. And this is just the first step in that journey.”
In another milestone, Ved “Beelzeboy” Bamb, a 21-year-old software engineer from Nagpur, won the Pokémon GO World Championships 2025 in Anaheim, USA. He became the first Indian to win a world title in any esports discipline, defeating Spain’s Leo “P4T0M4N” Marín twice in the Masters Division grand finale to secure the trophy and $20,000 from a $100,000 prize pool.
The Pokémon Company has confirmed the return of the Pokémon UNITE Asia Champions League with the launch of the PUACL 2026 India League. The $20,000 online tournament will determine which team advances to the PUACL 2026 Offline Finals, scheduled to take place at the Yokohama Buntai Arena in Japan.
Skyesports CEO Shiva Nandy stated that the competition provides Indian teams with a platform to qualify for Asia-level play. The India League will be broadcast on official Pokémon UNITE and Skyesports channels. He noted, “We are proud to execute the India League once again and to provide a clear pathway for Indian players to compete at the highest level in Asia. This league showcases the quality of talent within our ecosystem and the growing opportunities for teams and professionals committed to the title. With ten leading organisations competing, the stage is set for an exciting season, and we look forward to sending a representative from India to the global finals.”
India’s domestic esports framework
India’s 2026 esports calendar is being shaped around three pillars: recognition within multi-sport events such as the Asian Games and Khelo India; state-backed competitions like Tamil Nadu’s Chief Minister’s Trophy; and a growing network of university and city-level tournaments in hubs such as Karnataka. These initiatives are building a pathway from school and college LAN events to international competition in titles including BGMI, football simulations, and strategy games.
At the 2025 Khelo India Youth Games in Bihar, esports featured as a demonstration event with BGMI, Street Fighter 6, Chess, and eFootball. Akshat Rathee of NODWIN Gaming noted that placing BGMI and Chess under the same umbrella could help identify talent from smaller cities.
Tamil Nadu’s Chief Minister’s Trophy 2025 included esports as a medal event, with a prize pool of approximately ₹35 lakh ($42,000) for BGMI, Pokémon UNITE, and VALORANT, within a broader ₹37 crore multi-sport budget. Skyesports founder Shiva Nandy stated that participation included more than 800 BGMI teams, 159 Pokémon UNITE line-ups, over 70 VALORANT teams, and more than 5,000 players, making it one of India’s largest state-backed grassroots esports circuits.
Karnataka has experienced growth in college and city-level LAN tournaments for titles such as VALORANT and BGMI, using formats similar to professional circuits, with online qualifiers leading to offline finals streamed on official channels.
Crossing 500 million gamers
India enters 2026 with over 500 million gamers, approximately 95 percent of whom play on mobile devices. Growth is now driven primarily by Tier II and Tier III cities rather than metropolitan centres. Analysts, including Niko Partners, project that India will reach around 724 million gamers by 2029, placing it alongside China in gamer population and making it one of the fastest-growing markets across Asia and the MENA region.
Reports from 2025 indicate a more diverse player base, with increased female participation, regional language communities, and older casual players engaging through social and vernacular content. For publishers and platforms, 2026 marks a shift towards designing for multiple audience segments across languages, price points, and devices, rather than focusing solely on youth demographics.
Esports is one of India’s fastest-growing sectors, according to a widely circulated investor post on LinkedIn by Rushil H. Shah. He observed that as young players turn professional, corporations enter the market, and tournaments attract substantial online audiences, esports has evolved from a niche hobby into a structured industry.
Shah emphasised that while colleges and companies are beginning to embrace esports through courses and sponsorships, lower bandwidth requirements, 5G connectivity, and affordable equipment are enabling participation from smaller communities. He predicted that esports would become mainstream in India over the next five years, with industry growth estimated at approximately 18 percent annually.
Esports enters a post-aspiration phase
Driven by widespread adoption of UPI-based microtransactions and an estimated 126 million paying players, analysts expect player spending in India to exceed $1 billion in 2025. Spending is projected to reach approximately $1.5 billion by 2028, with in-app purchases overtaking advertising as the primary revenue stream for many mid-core and hardcore games in 2026.
India’s esports market was valued at $40 million in FY2025 and is projected to grow at a 26 per cent annual rate, crossing $132 million by FY2030. About 60 per cent of gamers now participate in esports, making competitive play and viewing a mainstream activity.
PwC India’s Global Entertainment and Media Outlook 2025–29 projects the country’s entertainment and media industry to grow from $32.2 billion in 2024 to $47.2 billion by 2029, almost double the global average growth rate. Gaming and esports are expected to increase from $2.79 billion in 2024 to $3.96 billion by 2029.
Brands and developers drive gaming growth
In 2026, brands across sectors such as FMCG, automotive, BFSI, telecoms, and ed-tech are expected to integrate gaming into their youth-focused media strategies, expanding sponsorship beyond traditional technology and beverage categories. Rising advertiser confidence in non-RMG gaming formats was evident in 2025 reports, a trend likely to continue as PROGA clarifies permissible models.
With more than 500 gaming companies founded in the past five years, India’s developer ecosystem has shifted from service-based work to original IP creation. Industry sources indicate that leading studios generate up to 80 per cent of their revenue from international markets, a trend expected to continue under PROGA and government incentives.
Supported by AI-driven production tools and localisation systems that enable small teams to create multi-language builds, more Indian games are expected to launch globally on PC and mobile platforms in 2026. Titles drawing on mythology, history, and futuristic Indian settings are emerging as distinctive offerings within highly competitive global app stores.
India’s global gaming ambition
By the end of the decade, India aims to establish itself as a major global gaming hub. Indian studios are expanding into Asia-MENA markets and diaspora communities through vernacular content pipelines, AI-assisted production, and culturally rooted intellectual property. PROGA and related initiatives aim to provide a stable framework for long-term investment.
The year 2026 will test whether India’s gaming and esports industries can build enduring institutions through effective regulation, professional competition structures, sustainable creative careers, and internationally competitive intellectual property, following their transition into the mainstream in 2025. It represents a critical moment for all stakeholders shaping the industry’s future.
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