Gaming is no longer just a way to pass time in India’s Tier-2 and Tier-3 cities. It’s fast becoming a key platform where consumers discover brands, services and products, according to new research.
A study by Rukam Capital shows that over half of gamers in smaller cities pay attention to ads inside games. This marks a shift from gaming being purely entertainment to a powerful consumer touchpoint.
Consumers Trust Gaming Content#
The Rukam Capital report Beyond Metros: The Real Story of Bharat’s Next 500 Million surveyed more than 5,000 people across 18 states. It found that 55% of Tier-2 and 52% of Tier-3 gamers respond positively to in-game ads.
Archana Jahagirdar, Founder of Rukam Capital, said, “These consumers aren’t chasing aspiration; they make informed choices that fit their lives.” Her take points to a deeper trend where trust now matters more than celebrity endorsements.
Just 3% of these buyers say celebrity ads drive their decisions. By contrast, 22% say creators and word-of-mouth shape their choices.
Larger Digital Patterns at Play#
Experts say mobile gaming’s rise in smaller cities reflects wider digital growth in India. The nation’s gaming sector was valued at over $2.4 billion in 2025, with projections to reach $7.8 billion by 2030, driven largely by Tier-2/3 adoption and local language content.
The Indian gaming market size is also expected to nearly double between 2026 and 2031, from about $5 billion to almost $10 billion, a sign that consumer engagement and monetization are both rising.
Social platforms are backing this trend too. Meta reported that nearly half of casual gamers and 43% of real-money gamers were from non-metro areas, underlining the deep reach of mobile gaming beyond big cities.
Beyond Ads: A Broader Ecosystem#
Gaming’s influence isn’t limited to product discovery. The India Esports market is growing fast on sponsorships and events. It hit around $208 million in 2025 and is forecast to expand toward over $1 billion by 2034 as brands tap into live streams, tournaments and regional leagues.
Industry bodies are also pushing boundaries. The Skillhub Online Games Federation (SOGF) was formed to support esports and competitive gameplay in line with global standards. It aims to align competitive gaming with youth development and digital inclusion goals.
Meanwhile, government officials are clarifying policy goals. S. Krishnan, Secretary at the Ministry of Electronics and Information Technology, said India should promote legitimate esports and game development while tackling illegal money gaming. This focus aims to make India a global hub for ethical online gaming.
The Road Ahead#
With more than 680 million smartphone users and affordable internet reaching rural and semi-urban India, gaming will continue shaping how consumers learn about products.
For brands and policymakers alike, understanding this new discovery pathway will be crucial to drive growth in the next digital decade.
Clear Cut Startups Desk
New Delhi, UPDATED: Jan 19, 2026 04:00 IST
Written By: Ayushman Meena
