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India’s game development ecosystem is increasingly focused on building original intellectual property (IP), but limited access to capital, publishing expertise, and international market opportunities continues to hamper the industry’s growth, according to the latest gaming industry report released by the Game Developer Association of India (GDAI).
The report, titled GameDev Outlook 2026, was unveiled at the India Game Developer Conference (IGDC) in Chennai. Developed in partnership with PhonePe Appstore and research partner The Dialogue, the study examines the opportunities and structural challenges facing India’s game development sector.
According to the report, 82.7% of surveyed studios identified launching new game IP as their top business priority, significantly ahead of international expansion (49%) and raising capital or securing publishing deals (38.5%). At the same time, 75% of respondents cited access to funding and publishing investment as a key barrier to growth.
India’s video gaming market generated an estimated US$1.04 billion in revenue in 2025, growing 14.8% year-on-year and reaching 511 million players. However, the report notes that annual revenue per user remains relatively low at US$2.04, highlighting ongoing monetisation challenges despite rapid user growth.
The study also points to the growing geographical diversification of India’s gaming talent pool. More than 41% of industry responses originated from Tier-2 and Tier-3 locations, indicating that game development activity is expanding beyond traditional technology hubs.
Industry-academia collaboration emerged as another key theme. Nearly two-thirds of surveyed industry participants expressed willingness to contribute to curriculum advisory boards, while educational institutions showed strong interest in initiatives such as game jams, developer meetups, and structured industry partnership.
The report further highlights international expansion as a significant aspiration for Indian studios, with nearly half of respondents prioritising overseas markets. However, many developers reported challenges in attracting international publishing and investment partners.
Regionalisation is expected to play an increasingly important role in user acquisition strategies. The findings reveal that 40% of PhonePe Appstore users navigate the platform in regional languages, suggesting growing opportunities for developers to localise content and engage audiences beyond English-speaking users.
The report concludes that stronger collaboration between developers, investors, publishers, academic institutions and policymakers will be critical to building globally competitive gaming studios and accelerating the growth of India’s game development ecosystem.
