WITH THE Promotion and Regulation of Online Gaming Act (PROGA) shifting from policy to implementation, India’s esports ecosystem is moving into a more mature phase, one where competitive integrity, athlete development and commercial confidence are increasingly aligned.
A key milestone on the horizon is the Asian Games 2026 in Japan, where esports will once again be contested as a medal event. Its inclusion within a fully recognised multi-sport framework further cements competitive gaming’s legitimacy alongside traditional sports. Beyond the Asian Games, global properties such as the Esports World Cup and the Esports Nations Cup are expected to feature stronger Indian participation, reflecting growing competitive depth and improved preparedness.
This international momentum mirrors developments at home. Esports’ inclusion as a demonstration sport at last year’s Khelo India Youth Games marked a significant inflection point, signalling the government’s intent to embed competitive gaming within national sporting structures. With PROGA now in force, 2026 is likely to see wider state-level adoption, an increase in grassroots tournaments, and more clearly defined athlete pathways through schools, colleges and youth leagues.
NODWIN Gaming co-founder and managing director Akshat Rathee said, “For Indian esports to truly level up in 2026, the focus has to shift from being largely event-led to ecosystem-led. Regional and state-level competitions that consistently feed into national leagues will be crucial to widening the talent pipeline and ensuring competitive players emerge from every part of the country. India also needs to move beyond being seen as a one or two title market. While BGMI and Free Fire remain important, long-term growth will depend on deliberately building ecosystems around a variety of titles. Equally important is developing more India-relevant and Indian-published titles that are esports-ready from day one.”
Rathee also points to the evolution of commercial models, with revenue-sharing structures across publishers, organisers, teams and creators spanning media rights, in-game activations, ticketing and merchandise set to play a bigger role. From a business perspective, he adds that NODWIN Gaming is targeting 15 to 40 per cent growth, driven by a mix of organic expansion and selective inorganic opportunities.
At the core of this next phase lies talent development. While India already offers scale in both players and viewership, 2026 will test how effectively the ecosystem can identify, nurture and retain competitive talent over time. Animesh Agarwal, co-founder and CEO of S8UL Esports, sees this as the sector’s defining challenge. “India already has the passion and numbers. What will differentiate us globally is how early we spot talent and how well we support players once they enter the system,” he shares.
As the industry professionalises, brands are also rethinking their engagement strategies. Regulatory clarity has repositioned esports as a long-term youth engagement platform rather than a short-lived experiment. FMCG, automotive, BFSI and ed-tech brands are expected to increase their involvement through creator collaborations, IP-led tournaments and campus-based gaming programmes. The focus is shifting from short-term visibility to sustained participation and trust within gaming communities.
These changes are closely linked to evolving gamer behaviour. Hardware adoption is accelerating, particularly beyond metropolitan centres. More affordable gaming PCs, AI-enabled peripherals and cloud gaming services are reducing entry barriers, while Gen Z consumers are investing more deliberately in performance-focused setups.
CyberPowerPC India COO Vishal Parekh notes, “Gamers today are far more deliberate. A PC is no longer seen as a single purchase, but as a performance ecosystem that evolves over time.” He expects competitive multiplayer and mid-core PC titles to continue gaining traction, alongside social and creator-led formats that turn gaming into a shared, community-driven experience.
Monetisation trends are also maturing. LVL Zero head of incubation Sagar Nair anticipates deeper engagement with long-term value models. “Spending is shifting toward systems that reward commitment, whether that is battle passes, cosmetic progression, or subscription-based models,” he explains.
Nair also highlights the rise of an older, more financially stable gamer demographic, players who grew up with games and now have greater spending power. “Creators and communities will increasingly drive discovery, retention, and monetisation,” Sagar adds, framing 2026 as a year of execution as LVL Zero prepares to launch its first cohort to support high-potential teams through development and launch.
