India is frequently cited as the largest gaming market by downloads and is home to roughly 568 million gamers, according to the State of India Gaming Report by Lumikai and Google. Despite its reach, the country’s development scene has long been dominated by support work for overseas publishers. Despite the rapid growth, much of the development ecosystem remains focused on specialised, segmented roles such as art production, quality assurance and testing for global publishers. This model provides revenue but limits opportunities for domestic studios to control the creative pipeline and own game IP. Recent regulatory changes affecting RMG have also prompted studios to reassess their business models. Fortunately, there are emerging signs of homegrown studios beginning to build original IPs and expand capabilities beyond support and other services.
Shifts in India’s development roles
Bengaluru-based LightFury Games is evolving into a full-fledged game development studio, with plans to create and publish its original titles from India. “We acknowledge the realities our peers in the RMG sector encounter; scaling a business and then having to pivot is an unavoidable challenge”, says Karan Shroff, LightFury’s chief executive officer and co-founder. “But we believe that doubling down on homegrown intellectual property from concept through to execution will unleash innovation, build capability centres in India and create an economic multiplier for the industry,” he added.
LightFury is one of a handful of homegrown studios that are investing in original IP and expanding beyond support services. The company says its journey toward ownership of the entire development process hinges on building a team capable of handling design, engineering, and production within India, while collaborating with international talent and leveraging next-gen technology.
Owning the development pipeline
LightFury’s forthcoming title, E-Cricket, was announced at the Game Developers Conference, San Francisco 2025. The studio describes the game as an AAA sports title built on Unreal Engine 5 and also powered by Amazon Web Services, enabling it to deliver improved gaming experiences without hardware restrictions. Rather than serving as a supplier to foreign publishers, LightFury says it is using these tools and leveraging AI to take a creator role in large-scale development. “With the right combination of world-class technology and global and Indian talent fusion, we are confident of building India’s AAA gaming ecosystem,” says Shroff.
Homegrown studios making it big
India’s gaming industry, as reported by the All India Game Developers Forum, is projected to reach $4.5 billion by 2025, a sign that capabilities are being nurtured and capitalised. Studios like LightFury argue that the market’s young, skilled workforce and the availability of advanced tools make it viable to build world-class games locally. “India boasts a young and skilled workforce, so talent is abundant,” says Shroff “What we need is to fully leverage the technology available to us to help position the nation as the next global hub for AAA development.”
As global attention turns to emerging markets, homegrown studios are on track to demonstrate that India is ready to compete at the highest levels of game development, and the challenges facing the industry can be addressed through investment in local talent and technology.
No VCCircle journalist was involved in the creation/production of this content.
