India’s video games market has surpassed $1 billion in annual revenue for the first time, closing 2025 at $1.04 billion, according to new figures from market research firm Niko Partners. The milestone marks a 14.8 percent increase year-over-year, underscoring the sustained pace of growth in one of the world’s most closely watched emerging gaming markets. Niko Partners projects the market will continue expanding to reach $1.2 billion by the end of 2026, cementing India’s position as a rising force in global interactive entertainment.
The growth is being attributed largely to the continued spread of affordable smartphones, rising disposable income among an expanding middle class, and the dominance of mobile gaming as the primary access point for players across the country. Mobile-first gaming behavior in India mirrors patterns already well established in other high-growth regions, including parts of Southeast Asia and the Middle East, where budget-friendly devices and cheaper data plans have historically been the gateway to mass gaming adoption rather than console or PC ecosystems.
India’s trajectory places it alongside a small group of markets that analysts consider critical to the next phase of global gaming industry growth, as more mature markets in North America, Europe and parts of East Asia show signs of saturation. With a population exceeding 1.4 billion and internet penetration still climbing, India is increasingly viewed by publishers, investors and platform operators as a long-term growth market rather than a short-term opportunity.
Why the Milestone Matters for the Gulf
For the UAE and wider GCC region, India’s breakout year carries relevance beyond simple market-watching. Gulf sovereign wealth funds, venture investors and entertainment conglomerates have in recent years built up significant exposure to gaming and esports as part of broader economic diversification strategies, particularly in the UAE and Saudi Arabia. As those investors look for the next wave of growth markets to complement mature Western gaming portfolios, India’s crossing of the $1 billion mark strengthens the case for South Asia as a viable expansion target.
The parallels Niko Partners draws between India’s growth drivers and dynamics already visible in the GCC are notable. Both regions have seen gaming adoption accelerate on the back of high smartphone penetration and young, digitally native populations, even as the underlying economic profiles differ. For Gulf-based publishers, distributors and telecom operators exploring partnerships or market entry in South Asia, India’s scale offers a substantially larger addressable audience than most markets currently within reach of regional gaming companies.
The forecast growth to $1.2 billion by 2026 also signals to regional investment funds that the Indian market is not a one-off spike but part of a multi-year expansion curve, an important distinction for firms conducting due diligence on longer-horizon bets in emerging digital entertainment markets. As gaming continues to be positioned within the UAE and Saudi Arabia as a strategic pillar of economic diversification, alongside sectors such as fintech and renewable energy, developments in comparable emerging markets like India are likely to remain on the radar of regional decision-makers assessing where to deploy capital next.
Niko Partners’ data adds to a growing body of research tracking the global south’s expanding share of gaming revenue, a shift that has implications for how publishers headquartered in the Gulf, Asia and beyond prioritize localization, distribution and investment strategies over the coming years.
