New Delhi: Lumikai has released its fifth edition of the State of India Interactive Media Report 2025, revealing that India’s interactive media economy has reached $13.8 billion, growing at 17% year-on-year, driven by the country’s rapidly expanding base of 877 million smartphone users.
The report highlights the meteoric rise of micro-dramas, which have emerged as a breakout category, crossing $300 million in their first year with 450 million downloads and 100 million monthly active users. The segment is projected to scale to $4.5 billion by 2030, signalling a major shift in content consumption patterns.
“Micro-dramas crossed $300 million in their first year. That tells you something fundamental about where Indian media is heading – toward formats that are mobile- native, interactive, and geared for a new generation of media consumers. The paradigm shift from search to social to video is well understood. The next shift with interactive media and AI is now underway in India,” Salone Sehgal, Founder and Managing Partner, Lumikai
Beyond micro-dramas, the report outlines strong growth across gaming, animation, and niche digital platforms. India’s gaming market surpassed $1.5 billion in 2025, supported by a user base of 555 million gamers and a 25% payer conversion rate, indicating deepening monetisation.
The report also flags regulatory shifts in the real-money gaming (RMG) segment, noting a migration of users to offshore platforms following the 2025 ban.
“The RMG ban didn’t eliminate demand. Our research with VTION shows one in three former players migrated to offshore betting platforms – spending up to ₹10,000 a month with zero oversight, zero tax contribution, and zero consumer protection. Meanwhile, the rest of the market is healthy: video gaming grew 17% and is on track to cross $3 billion by 2030. The demand is real. The question is whether regulation channels it productively,” Aditya Deshpande, Principal, Lumikai
The findings further highlight the growing importance of high-intent, niche platforms. Categories such as astrology, devotional content and micro-learning apps are outperforming broader social media platforms in monetisation, with annual ARPU of $8.4 and $5.5 respectively.
India’s animation and VFX sector, valued at $1.6 billion, is also undergoing a transition from outsourcing-led growth to original IP creation, aided by AI-driven efficiencies that are reducing production timelines by up to 50%.
Overall, the report underscores a structural shift in India’s media landscape—from passive consumption to interactive, personalised experiences—where mobile-first formats, vertical platforms and AI-led innovation are redefining how consumers spend both time and money.
As the ecosystem evolves, the convergence of content, technology and monetisation models is expected to drive the next phase of growth, positioning India as a key global market in the interactive media economy.
