‘Design in India, Design for the World’ was one of the key statements made by India’s Prime Minister in one of his recent addresses, calling upon India’s IT professionals to “lead the world of gaming” and “make an impact globally.” The statement is reflective of India’s current positioning vis-à-vis the gaming sector and compliments its broader ‘Make in India’ programme. Once known as an IT outsourcing haven, India is now emerging as a global hub for game development. 

Letting the numbers do the talking 

Several key parameters make India a conducive market for game development. First, the country has a sizeable talent pool experienced in developing globally accredited games. Currently, India has more than 5.8 million software engineers, 18,000+ game developers and the country produces over 2 million STEM graduates annually. Secondly, the cost of procuring a mobile gaming device and access to the internet is amongst the lowest globally. As per Counterpoint Research, the average selling price of a mobile phone in India is currently below $250 as compared to the global average of $370. Average internet pricing is at $1.89 per month compared to $49 in the USA. 

Thirdly, India has a sizeable population of gamers across genres. The digital gaming market (non-online money gaming) is currently valued at $2.4bn and expected to grow at 18% CAGR to $4.3 billion by 2030. There are more than 1.02 billion internet users and over 500 million active gamers. Fourth, a plethora of game studios and companies are operational in India with support from ancillary service providers for marketing, operations, VFX, animation, etc. As of late 2025, there are more than two thousand companies in the Indian gaming industry. The presence of global players like Krafton, Electronic Arts, Ubisoft, Rockstar and Zynga, some having presence in India since the 1990s, is reflective of India being conducive for game development across genres. 

Lastly, India has a stable regulatory and policy environment for game development within the overall focus on the Animation, Visual Effects, Gaming, Comics and Extended Reality (“AVGC-XR”) sector. 

Key government initiatives and incentives 

At the federal level: In 2022, the AVGC Promotion Task Force was established to formulate a national strategy for nurturing India’s AVGC-XR ecosystem, which was instrumental in recommending India’s National AVGC-XR Mission. Startups in the AVGC-XR sector can avail funding under the Startup India Seed Fund Scheme if they satisfy the prescribed eligibility criteria. In May 2025, the Indian Institute of Creative Technology was announced as the National Centre of Excellence for the AVGC-XR sector and has now partnered with Google, Meta, Adobe, Microsoft, NVIDIA and JioStar to co-develop curricula, offer internships, scholarships, incubation and mentoring. 

At the state level: Most states are increasingly focusing on incentivising local game development. Karnataka, India’s IT hub, under its AVGC-XR Policy 3.0 is reimbursing infrastructure and training costs for startups; providing grants for game development; has a dedicated AVGC-XR Fund; and a ‘Centre of Excellence for Gaming’ and over 300 specialised AVGC-XR studios. Kerala, another southern state, provides subsidies on leasing space at government-owned facilities; incentivies new technology adoption; and reimburses companies developing games on duly licensed global IP. Lastly, Maharashtra, India’s financial hub, has laid out a 25-year vision and an outlay of $360 million for the sector. It has proposed to reimburse up to 25% of project costs for gaming and promised that units will be allowed to operate 24x7, enjoy industrial power rates and fast-track clearances. 

Some legal aspects to consider 

Intellectual property: Under Indian law, games are protected through a composite of copyright, design, trademark and contractual rights. This makes game development agreements particularly important. It is crucial for parties to ensure that rights vis-à-vis each game asset - whether code, art, sound design or live-ops – is contractually unambiguous and legally sound. Clear assignment of present and future rights and clarity around derivative works and post-launch content is also essential to avoid disputes. 

Foreign investment: India permits 100% foreign investment in IT, software development, animation and VFX under the automatic route. There is, however, an express restriction on foreign investment in gambling and betting. Hence global gaming companies offering various gaming products using same or similar brands should position their investment in India as purely for game development, with no exposure to gambling or betting. Structuring decisions like whether to use a wholly owned subsidiary, set-up a global capability centre, or have a contractual development structure must also align with India’s exchange-control rules, transfer-pricing norms, and royalty and licensing regulations. 

Data governance: India recently enforced its comprehensive law on personal data – applicable equally to domestic and foreign operators servicing India. Some key aspects to consider include processing of children’s data and cross-border data transfer. For several aspects, compliance with GDPR may not be sufficient to demonstrate compliance with India’s personal data law. 

Conclusion 

With India’s recent ban on online money gaming, the ever-strong game development ecosystem in India has now taken centre stage. For global publishers and game studios evaluating new development destinations, India now offers an unprecedented mix of scale, skill, incentives and regulatory clarity.