Archive · 6 Nov 2025
India's Gaming Act Boosts Video Games, Targets $100 Billion Value by 2035
India has a new law called PROGA 2025 to help its video game industry.
Before, video games and games with real money were often confused.
This new law clearly separates them, which is good for game makers.
It means the government is paying more attention to video games, helping them create unique stories and content to export.
The goal is to make India a big player in making and exporting games.
To achieve this, India needs skilled people, money for companies, and clear, stable rules.
In Tamil Nadu, the government is also creating a new policy to support animation, gaming, and other related fields.
Many people are coming together in Chennai to discuss how to make the Indian gaming industry even better and attract more investments.
India's new Promotion and Regulation of Online Gaming Act (PROGA) 2025 is seen as a significant boon for the video game industry by separating it from real money gaming (RMG).
The policy clarity is expected to attract greater funding and help India's gaming sector grow tenfold to $10 billion by 2035.
Officials noted that the government is now engaging with video gaming for IP creation, collaborations, and cultural content exports, a shift from previous ambiguity.
Three pillars are identified as critical for India's global gaming ambitions: skilling, patient long-term capital, and policy stability.
The Tamil Nadu government is also set to release its AVGC-XR policy to further develop the animation, visual effects, gaming, comics, and extended reality ecosystem.
- Who
- Game Developers Association of India (GDAI) officials, including Board Member Manish Agarwal and Chairperson Sridhar Muppidi, and Tamil Nadu government officials.
- What
- The newly enacted Promotion and Regulation of Online Gaming Act (PROGA) 2025 has been praised by the video game industry for clarifying the distinction between video games and real money gaming (RMG), fostering growth and attracting investment. The Tamil Nadu government is also set to release its AVGC-XR policy.
- When
- Wednesday, November 5, 2025 (on the sidelines of the 17th India Game Developer Conference)
- Where
- Chennai, India
- Why
- To promote the video game industry, foster growth through intellectual property (IP) creation, industry collaborations, and cultural content exports, while providing a stable regulatory environment and attracting investment. The RMG industry challenged the law, citing violations of constitutional rights.
Real Money Gaming (RMG) Industry
Video Gaming Industry
Impact of PROGA 2025
Real Money Gaming (RMG) Industry
Several RMG platforms have challenged the law, claiming it violates rights and the distinction between games of skill and chance.
Video Gaming Industry
The PROGA 2025 is seen as a major boon for the video game industry, removing ambiguity and opening up funding opportunities.
- Act Name
- Promotion and Regulation of Online Gaming Act (PROGA) 2025
- Primary Beneficiary
- Video gaming sector
- Detrimental Impact
- Real Money Gaming (RMG) industry challenged the act
- Industry Vision (2035)
- $10 billion in annual gaming content exports, $100 billion in value creation
- Current Gaming Market Size (India)
- Undisclosed, but projected to grow tenfold to $10 billion by 2035
- Number of Gamers in India
- Over 500 million
- Industry Needs
- Skilling, patient long-term capital, and policy stability
- Gaming Funds (India)
- Approximately $200 million
Sources
Tamil Nadu AVGC-XR Policy will be out soon, said State IT Minister Palanivel Thiagarajan.
Tamil Nadu AVGC-XR Policy will be out soon, said State IT Minister Palanivel Thiagarajan.
The Promotion and Regulation of Online Gaming Act, 2025, is being hailed as a huge positive for India's video game sector.
