India’s Online Gaming Spend Hits ₹10,000 Crore a Month

India's Chief Economic Advisor V Anantha Nageswaran revealed that Indians are spending over INR 10,000 crore monthly on online games through the Unified Payments Interface (UPI).

At a meeting organized by the Ministry of Statistics and Programme Implementation (MoSPI), Nageswaran cited new data from the National Payments Corporation of India (NPCI).

For the first time, NPCI categorized UPI transactions by merchant type, showing digital gaming payments averaged INR 10,000 crore from April to July 2025. Total gaming payments reached INR 40,992 crore, nearly equaling UPI spending at drug stores and pharmacies. This includes spends on traditional video games and real money games.

Gaming accounted for 1.5% of all person-to-merchant UPI payments. In transaction volume, it made up 3.4% of all UPI deals. Nageswaran suggested a workshop to study how this spending affects household budgets and the economy.

The NPCI data only reflects UPI transactions, so total gaming spending is likely higher, as many use credit cards, debit cards, or internet banking. The 2023-24 household consumption survey by the statistics ministry lacks specific gaming data, and it was grouped under general payments.

The average UPI transaction size for gaming rose from INR 208 in April to INR 287 in July. This increase may be tied to global video game publishers adding UPI support. In June, Epic Games and Ubisoft adopted UPI, followed by Steam in July. Previously, players used cards or bank transfers, but UPI's ease possibly boosted spending.

India's online gaming market, especially mobile games like fantasy cricket and card games such as poker and rummy, has surged. These games, often debated as skill or chance, face a 28% Goods and Services Tax. A 2024 PwC report predicts the gaming market will grow to INR 66,000 crore by 2028 from INR 33,000 crore in 2023, with real-money gaming contributing Rs 16,500 crore in 2023.

With over 650 million smartphone users and cheap mobile data, Indians consumed 24.1 GB monthly in 2023, up 24 percent from 2022, much of it on gaming.

However, concerns about addiction and financial losses persist. The Ministry of Electronics and Information Technology issued 1,410 blocking orders for betting and gaming platforms from 2022 to February 2025.