Karnataka Seeks To Become India’s Leading Esports Hub

SUMMARY

Karnataka’s IT and BT minister Priyank Kharge was speaking at the Bengaluru GAFX 2025 conference on February 27

Kharge revealed his plans to host the nation's and perhaps Asia's biggest esporting festival for its gaming community

By FY29, the Indian gaming sector is projected to cross $9.2 Bn, with a compound annual growth rate (CAGR) of 20%

Karnataka’s IT and BT minister Priyank Kharge has reportedly revealed the state’s plan of becoming India’s leading esports hub, as the sector has been gaining traction in the southern pockets.

He was speaking at the Bengaluru GAFX 2025 conference yesterday (February 27).

“This year, I am hopeful that we will be hosting our own National Esports Festival. My intention is to hold the nation’s and perhaps Asia’s biggest esporting festival for our gaming community,” Kharge was quoted as saying in Moneycontrol’s report.

This comes at a time when esports and real money gaming (RMG) has been tangled with emerging regulations and rise in tax loads for over a year now.

Despite its headwinds, the rapid smartphone penetration, increasing internet access, and a youthful demographic eager for interactive entertainment, has offered vast potential for game developers.

It is to note that the Indian gaming landscape saw a 20% surge in revenue in the past year. In-app purchases, the industry’s fastest-growing segment, skyrocketed by 41%.

By FY29, the sector is projected to cross $9.2 Bn, with a compound annual growth rate (CAGR) of 20%.

Further, Kharge highlighted that more than 25 leading investors are engaging with 50 animation, VFX, gaming, comics, and extended reality (AVGC-XR) startups, offering funding and mentorship opportunities.

He revealed that the state will become the frontrunner in the AVGC-XR space as well and lead Karnataka to be a major contributor in the country’s ambition of becoming a global leader in the sector.

Prime Minister Narendra Modi, during his Independence day speech in August 2024, remarked that the youth of the country would make India a leading nation in the gaming industry by taking online games from the country to the world.

Even as the government’s push towards esports is benefitting startups in the space, there have been cases of protests that erupted in Karnataka’s Kalaburagi demanding a complete ban on online rummy games in the state, in October last year.

Additionally, Karnataka’s IT minister previously suggested a deeptech innovation cluster in Bengaluru to help grow and scale up startups in this sector.

Prior to that, Kharge also revealed that the state was looking to attract an investment of $6.2 Bn in technology sectors such as biotechnology, AI, semiconductors, AVGC (animation, visual effects, gaming, and comics), and healthtech from the US and Europe.