India’s love for gaming has gone beyond casual entertainment. What was once considered a hobby for teenagers is now a mainstream cultural and economic phenomenon. Chief Economic Advisor (CEA) V. Anantha Nageswaran recently revealed that Indians spent a staggering ₹41,000 crore on online gaming between April and July 2025, primarily through UPI payments.
That translates to nearly ₹10,000 crore every month—an amount comparable to what Indians spend on essential categories like medicines and groceries. This statistic has startled policymakers and highlighted the sheer scale of gaming in India’s rapidly expanding digital economy.
But what does this mean for India’s economy, society, and the future of digital entertainment? Let’s explore.
Online Gaming in Numbers: A ₹1.2 Lakh Crore Industry in the Making
According to the CEA, between April and July 2025, Indian gamers spent ₹41,000 crore on online games through UPI transactions alone.
- This accounts for 1.5% of total person-to-merchant UPI spending, which touched ₹27.77 lakh crore in the same period.
- In terms of transaction volume, gaming represented 3.4% of UPI activity.
- Extrapolated annually, this spending points to ₹1.2 lakh crore per year, a jaw-dropping figure that rivals some of India’s largest consumer categories.
And remember: these numbers only reflect UPI transactions. When you add debit/credit cards, net banking, and e-wallets, the actual spending is much higher.
Comparison with Other Sectors
- Pharmacy & drug stores: Similar UPI spending levels as online gaming.
- Retail groceries: Slightly higher, but gaming is catching up fast.
- Entertainment (cinemas/OTT): Online gaming already dwarfs them in consumer spending.
This shift signals that gaming is no longer just an “extra” pastime—it is becoming a core component of India’s consumption basket.
Why Are Indians Spending So Much on Online Games?
1. Mobile-First Gaming Culture
India has over 450 million gamers, most of them playing on smartphones. Affordable data plans, budget smartphones, and easy access to app stores have fueled this surge.
2. Microtransactions and In-Game Purchases
Many games are free to download but make money through in-app purchases—skins, power-ups, coins, and special passes. Spending ₹50 or ₹100 at a time doesn’t feel heavy, but when millions do it daily, the numbers explode.
3. Digital Payments Boom (UPI)
UPI has made transactions seamless. Instead of pulling out a card or entering details, gamers can pay in seconds with a mobile app.
4. Shift in Entertainment Preferences
Younger Indians are spending more time gaming than watching TV or going to the movies. The interactive, social nature of gaming makes it addictive and engaging.
5. Rise of Esports & Competitive Gaming
Esports tournaments with prize pools worth crores have added legitimacy to gaming. Many youngsters now see gaming not just as fun but as a potential career path.
What the Chief Economic Advisor Thinks
CEA Nageswaran emphasized that such spending is not trivial. He suggested that policymakers should study how this spending affects:
- Consumption patterns
- Savings behavior
- Disposable income
- GDP contribution
Essentially, India needs to treat gaming as a serious part of its economy, not just a casual distraction.
The Economic Impact of Online Gaming in India
Contribution to GDP
The online gaming industry contributed around ₹23,000 crore in 2023 and is expected to grow to ₹70,000 crore by 2027. With spending levels like ₹1.2 lakh crore annually, its impact on GDP will be significant.
Job Creation
From developers to designers, streamers to esports athletes, the industry is creating thousands of direct and indirect jobs. Platforms like MPL, Dream11, and Nazara Technologies employ large workforces.
Government Revenue
Online gaming platforms pay GST and other taxes. The government recently introduced stricter rules and 28% GST on real-money games, further boosting tax collections.
Concerns Around Rising Gaming Spend
While the growth is impressive, experts raise valid concerns:
- Addiction Risks – Many youngsters are spending long hours and significant money on games, leading to health and psychological concerns.
- Financial Drain – Microtransactions may seem small, but compulsive gaming can lead to thousands spent monthly.
- Regulatory Issues – With real-money gaming and betting apps, the line between skill-based gaming and gambling is often blurred.
- Digital Divide – While urban youth benefit, rural areas still lag in infrastructure, making gaming growth uneven.
The Human Side: How Indians Talk About Gaming
On Indian gaming forums and Reddit, users share mixed feelings:
“Mobile gaming is accessible and cheap. You don’t need expensive consoles. But the microtransactions add up quickly.”
“Earlier, people used to spend on movies and outings. Now the same money goes to games—it’s just a shift in entertainment.”
This shows how gaming is reshaping leisure habits across generations.
Future of Online Gaming in India
The industry is projected to:
- Double in size by 2028 (₹66,000 crore market).
- Attract global investments from companies like Tencent, Sony, and Microsoft.
- Expand into AR/VR gaming as India adopts 5G and advanced tech.
- Become a mainstream career path with esports, game streaming, and professional content creation.
FAQs on Online Gaming Spend in India
Q1: How much did Indians spend on online gaming in 2025?
👉 ₹41,000 crore in just four months (April–July), which is around ₹10,000 crore per month.
Q2: How big is the Indian gaming industry?
👉 Around ₹23,000 crore in 2023, projected to reach ₹70,000 crore by 2027.
Q3: What drives gaming growth in India?
👉 Affordable mobile internet, smartphone penetration, UPI payments, and esports.
Q4: Is gaming spending higher than other entertainment forms?
👉 Yes. Online gaming spend already rivals or surpasses OTT, cinemas, and even some retail categories.
Q5: What are the risks of rising gaming spending?
👉 Addiction, overspending, gambling concerns, and regulatory challenges.
Conclusion: Gaming Is No Longer “Small Change”
The fact that Indians spent ₹41,000 crore on online games in four months proves that gaming is no longer niche—it’s mainstream. It competes with essential categories like medicine and groceries in consumer spending.
For India, this is both an opportunity and a challenge. Gaming can generate jobs, revenue, and digital innovation. But it also raises concerns about addiction, overspending, and regulation.
As CEA Nageswaran said, policymakers must look beyond traditional consumption data and recognize the new digital realities shaping India’s economy. Online gaming isn’t just play—it’s big business with real impact.