India’s gaming & esports industry in 2026: The biggest opportunity & the biggest challenge

As India’s gaming and esports ecosystem enters 2026, the industry stands at a pivotal crossroads. With unprecedented regulatory clarity, booming player engagement, and rising global competitiveness, the sector’s biggest opportunity lies in transforming scale into sustainable growth. Yet amid this optimism, key challenges remain, from infrastructure and monetization models to talent retention and global standards—that will define the path ahead.

The Tech Panda asked esports industry experts what they see as the biggest opportunity and the biggest challenge for India’s gaming and esports ecosystem in 2026.

Akshat Rathee, Co-founder and MD of NODWIN Gaming, says the biggest opportunity for 2026 lies in deepening the ecosystem with turning recognition into infrastructure.

“With regulatory clarity in place, we envision a future where every state hosts its own regional esports championships, feeding into a structured national circuit. This will ensure that India’s next generation of esports athletes emerge from every corner of the country, not just metro cities,” — Akshat Rathee, Co-founder and MD of NODWIN Gaming

“With regulatory clarity in place, we envision a future where every state hosts its own regional esports championships, feeding into a structured national circuit. This will ensure that India’s next generation of esports athletes emerge from every corner of the country, not just metro cities,” he says.

“We’re also seeing a surge in new game titles entering the competitive space, including several homegrown IPs that are being developed with esports readiness in mind. Add to that the growing participation of women in tournaments, the rising prominence of collegiate leagues, and global pathways through events like the Esports World Cup (EWC) and Esports Nations Cup (ENC), all of which are expanding opportunities for Indian players to earn international recognition,” he adds.

He adds that there is expectation to see greater investment in training, education, and infrastructure, enabling athletes to pursue esports as a professional pathway similar to cricket or football.

“For organisers and publishers, regionalization and vernacular engagement will be key, esports has to feel local before it becomes truly national,” he says.

The challenge, he says, will be sustaining this growth responsibly.

“As the audience and capital inflow expand, maintaining integrity, player welfare, athletes visa approvals and fair competition will be crucial. But with a clear regulatory framework, a passionate player base, and companies like us continuing to build structured IPs and international partnerships, India is well-positioned to become one of the most vibrant esports ecosystems in the world,” he states.

Vishal Parekh, COO of CyberPowerPC, says the opportunity lies in empowerment, giving gamers the tools, knowledge, and confidence to compete on equal footing.

“The vision is simple — create clearer pathways for gamers to grow, empower them through reliable hardware and community access, and make PC gaming truly accessible and performance-focused. If we can do that together, India will compete with confidence on the global esports stage in the years ahead.” — Vishal Parekh, COO of CyberPowerPC

“The conversation around gaming has matured, and the focus now is on accessibility and reliability. Building high-performance infrastructure, affordable setups, and community-first spaces will shape how gaming becomes part of everyday life in India,” he says.

“Strong hardware ecosystems create strong competitive ecosystems, and that’s where India’s next leap will come from,” he adds.

The challenge, he sees, is scale.

“Tier 2 and Tier 3 cities have immense potential, but access to quality equipment, training, and stable connectivity remains uneven. Bridging that gap will require collective effort from brands, partners, and institutions that believe in the long-term growth of gaming,” he explains.

CyberPowerPC India has been powering spaces like ApeCity and creating Experience Zones with partners like Vishal Peripherals, to engage with players and creators at GamingCon Bharat 2025.

“The vision is simple — create clearer pathways for gamers to grow, empower them through reliable hardware and community access, and make PC gaming truly accessible and performance-focused. If we can do that together, India will compete with confidence on the global esports stage in the years ahead,” he adds.

Krish Anurag, Managing Partner at Chimera VC and Founding Partner at LVL Zero, says the biggest opportunity for 2026 lies in building India-to-global IP, titles rooted in India’s rich folklore, culture, and lore that can resonate worldwide.

“While our developer pipeline is growing, ARPU remains below mature markets, meaning studios must be capital-efficient in user acquisition and live-ops. Similarly, sustaining multi-platform support and ongoing updates will require deeper technical and design talent pools outside a few major hubs,” — Krish Anurag, Managing Partner at Chimera VC and Founding Partner at LVL Zero

“With the market projected to grow from USD 3.8 billion in FY24 to USD 9.2 billion by FY29 (Bitkraft-Redseer India Gaming Report 2025), there’s enough headroom for both game creators and toolmakers to scale globally,” he says.

Monetization models are also evolving.

“With UPI-led instant payments now normalized, Indian studios can move beyond ad-heavy models into hybrid systems like cosmetics, battle passes, and subscriptions across mobile, PC, and console. This shift can unlock real revenue depth for Indian-made games,” he adds.

The key challenges, he says, lie in discovery, retention, and production maturity.

“While our developer pipeline is growing, ARPU remains below mature markets, meaning studios must be capital-efficient in user acquisition and live-ops. Similarly, sustaining multi-platform support and ongoing updates will require deeper technical and design talent pools outside a few major hubs,” he explains.

Finally, he says that policy consistency will be critical.

“After the 2025 money-games ban and GST reforms, the ecosystem needs stable treatment for esports, competitive play, and entertainment games to maintain investor confidence,” he says.

LVL Zero and Chimera VC see themselves as economy designers, where Chimera provides the capital that fuels the ecosystem, and LVL Zero builds the on-ramp that turns early-stage teams into scalable businesses.

“Our intake data shows rising prototype quality, PC focus, and cross-platform ambition, signals that India is moving from playing games to building them for the world,” he explains.

Animesh Agarwal, Co-founder and CEO of S8UL Esports, says, the opportunity ahead lies in strengthening the foundation we’ve built.

“The ecosystem is expanding fast, but stability will depend on clear policies, reliable monetisation, and better support for players. From organisations to brands and governing bodies, needs to move with a shared vision to make that possible,” — Animesh Agarwal, Co-founder and CEO of S8UL Esports

“India already has the numbers and the passion. The focus now should be on deeper systems for player development, stronger collaborations, and creating sustainable paths for careers in gaming and content,” he says.

The challenge, he says will be to keep that growth balanced. “The ecosystem is expanding fast, but stability will depend on clear policies, reliable monetisation, and better support for players. From organisations to brands and governing bodies, needs to move with a shared vision to make that possible,” he points out.

In 2026, S8UL aims to keep raising standards in every area, “We want to grow our competitive teams, reach global audiences, and continue building meaningful experiences for fans. India has always had the talent and ambition to lead in esports. What will define the next phase is how we work together to turn that potential into something lasting,” he surmises.

The biggest opportunity for 2026, says Rohit Agarwal, Founder and Director of Alpha Zegus, is that India can now build its own IP universes, from regional esports leagues and vernacular-first mobile titles to AI-enhanced gaming tools that personalize gameplay in real-time.

“If we can solve those two- consistent revenue and creator ecosystem stability- India’s gaming industry won’t just be a breakout story in Asia; it’ll be a blueprint for how emerging markets can build responsible, homegrown digital economies,” — Rohit Agarwal, Founder and Director of Alpha Zegus

“We’re already seeing studios experiment with mythology-inspired storylines, and creators are building recurring esports entertainment formats- things that can export Indian creativity to global audiences. The combination of low-cost production, cultural storytelling, and a base of over 488 million gamers gives India a unique edge that even established gaming markets can’t replicate,” he states.

The biggest challenge, though, he says, will be sustainable monetisation and infrastructure parity.

“Policy clarity is here, but infrastructure- from training facilities to stable esports funding and player protection- still lags. Similarly, monetisation models need to evolve beyond ad dependency and limited IAPs. The goal for 2026 should be to turn regulation into revenue, clarity into career pathways, and structure into scale,” he points out.

“If we can solve those two- consistent revenue and creator ecosystem stability- India’s gaming industry won’t just be a breakout story in Asia; it’ll be a blueprint for how emerging markets can build responsible, homegrown digital economies,” he reiterates.

The biggest opportunity for India’s gaming and esports industry in 2026 is to consolidate its momentum into long-term commercial and cultural relevance, building homegrown IP, professional pathways, and global market share. But the greatest challenge will be ensuring that this growth is supported by deepening infrastructure, scalable business models, and strategic investments that can withstand competition on the world stage. The coming year will test not just how fast the ecosystem can grow, but how well it can mature.