India's micro-drama market crosses $300m-mark, to hit $4.5 billion by 2030: Report

India’s micro-drama market has crossed $300 million within its first year, with 450 million downloads and 100 million monthly active users, according to Lumikai’s "State of India Interactive Media Report 2025". The report estimates the segment could grow to $4.5 billion by 2030.The report, now in its fifth edition, said India’s interactive media economy reached $13.8 billion in 2025 and is expanding at an annual rate of 17 per cent. The growth is being driven by the country’s 877 million smartphone users and increasing engagement with formats such as short-form video, gaming, social media, audio platforms and interactive learning applications.Micro-dramas, typically one-minute serialised videos designed for vertical mobile screens, emerged as one of the fastest-growing categories. The report said the format generated significant revenue in its first year of scale and is expected to grow by 91 per cent in 2026.India’s gaming market also expanded, with the free-to-play segment growing 17 per cent year-on-year to cross $1.5 billion in 2025. The country had around 555 million gamers, with about one in four users making payments within games. The sector is projected to reach $3.2 billion by 2030.The report also highlighted changes in the real-money gaming (RMG) segment following the ban introduced under the Promotion and Regulation of Online Gaming Act in August 2025. Research conducted with consumer insights platform VTION found that one in three former RMG users moved to offshore platforms, spending up to Rs 10,000 per month without regulatory oversight or tax contributions.India’s animation and visual effects (AVFX) industry, valued at $1.6 billion, continues to derive around 80 per cent of its revenue from international studios. However, the report said domestic production is increasing as filmmakers allocate larger portions of budgets to visual effects. The adoption of artificial intelligence tools has reduced production timelines by 30–50 per cent, potentially enabling the industry to develop more original intellectual property.The report also found that niche digital platforms focused on specific interests are generating stronger monetisation per user compared to broad social platforms. Astrology and devotional applications reported an average annual revenue per user (ARPU) of $8.4, while micro-learning platforms recorded an ARPU of $5.5.Salone Sehgal, Founder and Managing Partner at Lumikai, said the rapid growth of micro-dramas reflects a shift in how audiences consume content on smartphones. “The next shift with interactive media and AI is now underway in India,” she said.Aditya Deshpande, Principal at Lumikai, said the findings show strong demand for interactive media formats despite regulatory changes in certain sectors.