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India’s gaming sector, which has surged to $3.8 billion, now has female gamers making up 44% of the nation’s 591 million gaming population, gaming venture fund Lumikai said in its report.

On Monday, Lumikai launched its annual market intelligence report, titled ‘State of India Interactive Media and Gaming Report’ at its summit Lumikai Insignia.

The Indian gaming industry will touch $9.2 billion by FY29, with the country’s new media market reaching $12.5 billion in FY24, growing at a compound annual growth rate (CAGR) of 16%, the report said.

Among the new media formats, gaming and video/OTT contributed a total of over 60% to the overall market pie, it added. 

India is also the world’s second largest market by mobile gaming downloads, 3.5X larger than the US and Brazil, the report added, lagging only behind China’s 29.3 billion downloads in FY24. 

“Assembling the world’s leading names in the global interactive media industry, through our keynote panel and guest list, makes Insignia the definitive platform for meaningful dialogue and collaboration among technology visionaries and investment veterans aimed at shaping India’s interactive media landscape. Both founders and international VCs stood beneficiaries of the summit, connecting India’s entrepreneurial talent with global decision-makers,” said Salone Sehgal, Founding General Partner at Lumikai. 

“From a 30% increase in average weekly gaming time to a sophisticated user base of 148 million paying users contributing to an ARPPU of $22, the findings garnered global recognition and conveyed market readiness for the next phase of growth,” Sehgal added. 

Developed in collaboration with Google and Deloitte, Lumikai’s report also noted that despite growth in top line revenue in the sector, taxation challenges in the real-money games (RMG) segment resulted in margin compression and adverse impact on profitability.