Mumbai: The Union Budget 2026 is being closely watched by India’s gaming and digital ecosystem as the industry recalibrates following the 2025 ban on Real-Money Gaming (RMG).
While the regulatory reset reshaped business models across the sector, it has also marked a critical inflection point for India’s long-term ambitions in video gaming, interactive media, and digital IP creation.
With the Government of India signalling a strategic shift toward video gaming and game development, stakeholders are optimistic that Union Budget 2026 will formally recognise this transition through targeted policy and fiscal measures.
Also Read: How the DPDP Act Gaming Industry Framework Is Reshaping India’s Video Gaming Ecosystem
Union Budget 2026: Growth Trajectory
Video gaming in India is outpacing several digital entertainment segments and remains among the fastest-growing markets globally.
Industry leaders believe that a policy framework aligned with this growth could enable India to build a sustainable video game creation economy driven by studios, developers, and globally competitive intellectual property.
According to the BITKRAFT India Opportunity Report 2025, the games and interactive media sector – already a core pillar of India’s digital media and entertainment landscape – is projected to nearly triple to approximately $8 billion by FY2030.
This growth could transform India from a 500+ million gamer market into a globally relevant game-creation hub anchored in original IP and developer talent.
Union Budget 2026: Industry Leaders Call for Targeted Gaming Support
Sridhar Muppidi, Chairperson, GDAI (Game Developer Association of India), said:
“As India accelerates toward its goal of a $1 Trillion digital economy, the gaming sector stands at a pivotal inflection point. Our recommendations for Budget 2026 focus on a ‘surgically targeted’ approach: rather than asking for new greenfield projects, we are advocating for dedicated ‘Gaming Carve-outs’ within existing flagship schemes like Startup India (SISFS) and Skill India (PMKVY).
By earmarking funds for prototype development and specialized ‘Creative Tech’ apprenticeships, the government can provide the high-octane fuel needed for Indian studios to build world-class Intellectual Property.
Our vision is to transform India from being the world’s largest consumer of games into its most prolific creator, ensuring that ‘Made in India’ games are played on every console and smartphone globally.”
Nitish Mittersain, Jt. MD & CEO, Nazara Technologies, added:
“We are optimistic about the government’s continued focus on strengthening India’s digital and creative economy. For the gaming and interactive entertainment sector, a stable and predictable policy framework will be key to driving long-term growth and investor confidence.
Support for domestic game development, encouragement of original IP creation, investments in skilling and digital infrastructure, and focused initiatives around esports and animation can significantly accelerate the industry’s momentum.”
He further noted:
“India also has a unique opportunity to leverage its rich cultural heritage, mythology, and storytelling traditions to create globally successful IPs. With the right ecosystem support, India can emerge as a global creative powerhouse in interactive entertainment.”
Union Budget 2026 and AVGC-XR Recognition
Anuj Tandon, Partner – India & UAE, BITKRAFT Ventures, stated:
“India’s gaming industry is at a defining inflection point, driven by a massive digital-first audience and global demand for content – especially since clarity on regulation by the government. Budget 2026 should recognize gaming as a core pillar of the AVGC-XR ecosystem, not just a consumer industry.”
He added:
“My wish list would include tax incentives for global video gaming companies setting up shop in India that will help upgrade our talent pool to be industry ready to build games from India to the world.”
Anurag Choudhary, Founder & CEO, Felicity, said:
“India’s gaming opportunity should increasingly be viewed through the lens of production, not just consumption. While the domestic market continues to grow, the larger long-term opportunity lies in building globally competitive games, original IP, and scalable publishing platforms.”
