India’s interactive media market has seen significant growth, with microdramas emerging as a $300 million segment within a year, according to a report. A year ago, microdramas were almost non-existent but have now become popular among mobile-first users looking for interactive and personalized content. The interactive media economy in India is estimated to be at $13.8 billion, expanding at a rate of 17% annually across various sectors like video, social media, gaming, animation/VFX, and audio, driven by 877 million smartphone users.
“Microdramas have surpassed $300 million in their first year, indicating a shift towards mobile-native, interactive formats,” stated Salone Sehgal, Founder and Managing Partner of Lumikai. The report suggests that microdrama platforms could potentially grow to $4.5 billion by 2030, with the rise of short-form, vertical video storytelling gaining popularity. These platforms, featuring one-minute serialized episodes, have already garnered 450 million downloads and 100 million monthly active users, rivaling the early growth of OTT platforms.
India’s free-to-play gaming market has also shown robust growth, increasing by 17% year-on-year to exceed $1.5 billion in 2025, with projections to reach $3.2 billion by 2030. The report highlighted that around 555 million users engaged in mobile gaming during the year, with a quarter contributing to revenues through in-app purchases and advertising. However, regulatory changes in real-money gaming have caused a shift in user behavior, with one in three users moving to offshore betting platforms and spending up to Rs 10,000 per month in unregulated environments.
In the animation and VFX sector, India’s $1.6 billion industry is increasingly focusing on original intellectual property, leveraging AI advancements to reduce production timelines by up to 50%. The report also pointed out that niche digital platforms, such as astrology and micro-learning apps, are surpassing traditional social media in terms of monetization.
