India’s digital entertainment ecosystem is witnessing rapid change, with microdrama platforms emerging as a strong growth driver. At the same time, the real-money gaming segment is facing disruption due to tighter regulations and shifting user behaviour.
According to the Lumikai State of Interactive Media Report 2025, the market has reached $13.8 billion. This reflects a 17 percent year-on-year growth, supported by a large base of over 877 million smartphone users across the country.
Microdrama platforms have recorded impressive growth within a short period. They have crossed $300 million in revenue in their first year and achieved more than 450 million downloads, along with around 100 million monthly active users.
These short and interactive formats are changing how audiences consume content. Users are spending close to 60 minutes daily on such platforms, which matches the engagement levels typically seen on established OTT services.
The segment is expected to grow significantly in the coming years. Projections suggest that microdrama platforms could reach a market value of $4.5 billion by 2030, indicating strong long-term potential.
Meanwhile, the real-money gaming sector is dealing with regulatory challenges. The Promotion and Regulation of Online Gaming Act, 2025 has led to a shift in user patterns and platform preferences.
Reports indicate that nearly one-third of RMG users have moved to offshore betting platforms like Bet365 and 1xBet. Many are using VPN services to bypass safeguards and continue accessing these platforms.
Despite these challenges, the overall gaming ecosystem remains stable and has crossed $1.5 billion in 2025. This shows that demand for interactive digital experiences continues to grow steadily.
The report highlights a clear trend towards personalised and engaging platforms. While innovation is driving expansion, regulatory gaps may lead to parallel ecosystems that are harder to monitor effectively.
