iWorld
India’s influencer marketing sector primed for meteoric rise!
Mumbai: A recent report titled ‘The State Of Influencer Marketing in India’ by EY and Collective Artists Network’s Big Bang Social unveils a promising approach for influencer marketing in the country. Projections suggest a remarkable 25 per cent surge in 2024, reaching Rs 2,344 crore, with further expansion to Rs 3,375 crore by 2026.
The report showcases the integral role of influencer marketing across sectors, particularly in lifestyle, fashion, and beauty, as well as automobiles, e-commerce, and FMCG. With over 50 per cent of mobile usage dedicated to social media platforms, integrating influencer marketing into communication strategies is becoming imperative for marketers.
A blend of mega/macro influencers for brand awareness and micro/nano influencers for engagement is proving effective, with nano influencers exhibiting the highest engagement rates. Notably, 47 per cent of brands prefer micro and nano influencers due to their cost-effectiveness.
Challenges persist on both the brand and influencer fronts, with marketers grappling to determine the ROI of campaigns while influencers strive to maintain credibility and build loyal audiences.
The rising popularity of influencer marketing is evident, with 75 per cent of brands considering it an integral part of their marketing strategy. Smartphone users are driving this trend, with around 50 per cent of their time spent on social media platforms, predominantly Instagram and YouTube.
Looking forward, 86 per cent of influencers anticipate income growth of over 10 per cent in the next two years, reflecting the increasing demand for their services. Additionally, brands are poised to amplify their investments, with 70 per cent planning to maintain or increase budgets for influencer marketing in 2024.
Indiantelevision.com reached out to industry experts and digital creators on their thoughts on the state of Influencer marketing in India, what factors are contributing to its projected growth and the challenges anticipated in the evolving influencer marketing economy.
Edited excerpts
Chtrbox VP Karan Pherwani
The influencer marketing industry in India is expected to grow to Rs 3,375 crore by 2026 due to more people using social media, increased digital content consumption, and the rise of specialized influencers appealing to different audiences. The increasing adoption of influencer marketing by a wide range of industries, from fashion and beauty to technology and healthcare, is contributing to this growth. Furthermore, the trend towards personalized and authentic brand experiences is driving brands to invest more in influencer collaborations as a means of connecting with their target audiences on a deeper level.
Challenges in influencer marketing include ensuring genuine content in a crowded market, weeding out the influencers that ‘buy followers’, dealing with regulations.
Mint + Milk PR founders Komal Rukhana and Janvi Mankani
As an industry insider, it’s really fascinating to see how influencer marketing has evolved and exploded over the years. I think one of the big drivers behind this growth is the sheer number of influencers out there; and of course that’s paired with the way people consume news today. Post-covid, the audience relies on social media to know what’s happening in the world (topically) – all the way from fashion to politics, social media has become an hourly routine for audiences to know what’s happening in the world. It’s not just the usual lifestyle influencers anymore; we’ve got people from all walks of life sharing their stories and recommendations. But with everyone trying to be an influencer, it raises the question – who are they actually influencing? It’s become a bit overwhelming for audiences too, with so much content flooding their feeds every day. Therefore on the flip side, brands are facing a challenge in standing out amidst this sea of influencers and posts.
It’s true, many influencers are expecting their incomes to shoot up in the coming years. But along with that growth comes some challenges. Traditional media channels are shrinking, and brands are turning to influencers to get their messages across. Influencer marketing offers brands a way to control their message while still letting influencers bring their own flair to it. This blend of brand messaging and influencer authenticity is what resonates with audiences and ultimately drives sales. Plus, with all these new tools for tracking influencers and their audiences, brands are getting savvier about who they work with. It’s all about finding the right fit! And with influencers more accessible than ever, even smaller brands can jump into the game and grow their business without relying on big agencies.
Actor, model and digital creator Hamid Barkzi
With the growing internet penetration and smartphone usage in India, influencers have access to a larger audience, allowing brands to target a wider demographic. However, in a saturated market, navigating the right influencers can be challenging. Brands sometimes prioritize influencers based solely on their follower count, which may overlook content creators who offer genuine engagement and authenticity. This approach could limit opportunities for meaningful collaboration and reduce the impact of influencer marketing efforts.
Digital creator Hiba Hasan
Brands are now allocating more resources towards collaborating with micro and nano influencers. These influencers typically have smaller follower counts compared to macro-influencers but often possess highly engaged and loyal audiences. They provide brands with cost-effective and targeted avenues for marketing. Their ability to engage with niche audiences effectively contributes significantly to the overall growth of the industry.
Maintaining authenticity while adhering to brand guidelines can be tricky. Striking the right balance between creative freedom and brand expectations is crucial for content creators to preserve their credibility and resonate with their audience.
Content creator: Lifestyle and beauty Ria Amin
Consumers are increasingly valuing authenticity and trust, favoring influencers who can authentically endorse products and services, leading to higher engagement rates and ROI for brands.
The constant evolution of social media algorithms and platforms requires content creators to stay agile and adapt their strategies accordingly. Keeping up with the latest trends and algorithm changes while producing quality content remains a significant challenge in the ever-changing landscape of influencer marketing.
Gaming
India’s new online gaming rules take effect today, banning money games and creating a regulator
The rules, in force from today, separate e-sports from gambling and impose jail terms and stiff fines on violators
NEW DELHI: India’s online gaming sector woke up this morning to a new reality. The Promotion and Regulation of Online Gaming Rules, 2026, came into force today, May 1st, turning a year of legislative intent into enforceable law. The message from New Delhi is blunt: e-sports and social games are welcome; online money games are not.
The rules operationalise the Promotion and Regulation of Online Gaming (PROG) Act, passed by Parliament in August 2025. Together, they represent the most sweeping regulatory intervention India has made in its booming digital gaming market, one that generated Rs 23,200 crore in 2024 and is projected to grow at a compound annual rate of 11 per cent to reach Rs 31,600 crore by 2027. The stakes, in every sense, could not be higher.
A sector out of control
The urgency behind the legislation is not hard to find. An estimated 45 crore Indians have been affected by online money gaming platforms, with losses exceeding Rs 20,000 crore. Addiction, financial ruin, money laundering, and suicides have all been linked to the sector. Seventy-seven per cent of the market’s revenues came from transaction-based games, a figure that made regulators deeply uneasy.
The government’s response, effective as of today, is categorical. Online money games, whether based on chance, skill, or any mix of the two, are banned outright. So is their advertising, promotion, and facilitation. Banks and payment processors are barred from handling related transactions. Unlawful platforms can be blocked under the Information
Technology Act, 2000.
The penalties are designed to sting. Offering or facilitating online money games can attract up to three years in jail and a fine of up to Rs 1 crore, or both. Repeat offenders face a minimum of three years, extendable to five, with fines between Rs 1 crore and Rs 2 crore. Advertising such games carries up to two years in prison and fines of up to Rs 50 lakh, with repeat violations attracting higher penalties still. Cyber cell officers at state and union territory levels, including at police station, district, and commissionerate levels, are empowered to investigate offences.
The new sheriff in town
At the centre of the new framework sits the Online Gaming Authority of India, a digital-first regulator constituted as an attached office of the Ministry of Electronics and Information Technology, headquartered in Delhi. It is chaired by the additional secretary of MeitY and includes joint secretary-level representation from home affairs, finance, information and broadcasting, youth affairs and sports, and law and justice, a deliberately multi-sectoral design built for a complex sector.
The authority’s powers are broad. It will maintain and publish lists of online money games, investigate complaints, issue directions, orders, and codes of practice, hear appeals on user grievances, and coordinate with financial institutions and law enforcement to ensure effective and timely action.
Its decisions on game classification are to be completed within 90 days, a time-bound commitment that industry players have welcomed after years of regulatory ambiguity. Classification can be triggered by the authority acting on its own initiative, by an application from a service provider, or by a notification from the central government. Games will be assessed on objective factors: whether stakes are involved, whether players expect monetary winnings, the revenue model, and whether in-game assets can be monetised outside the game. The outcome is recorded in a determination order specific to the game and provider.
E-sports gets its moment
While the crackdown on money gaming dominates today’s headlines, the rules also carve out a structured path for e-sports and online social games. Registration, required when notified by the central government, applies to all games offered as e-sports and is based on factors including risk to users, scale, financial transactions, and country of origin. A successful application yields a digital certificate of registration with a unique number, valid for up to ten years. Service providers must display registration details, designate a point of contact, comply with data retention requirements, and follow directions on facilitating payments.
Online money games are explicitly ineligible for recognition or registration as e-sports under the National Sports Governance Act, 2025. The separation is deliberate, and the industry has noticed.
Akshat Rathee, co-founder and managing director of NODWIN Gaming, called today’s operationalisation “encouraging,” pointing to publisher-led registration of esports titles and a time-bound determination process as creating “much-needed certainty for all stakeholders.” He added that the “continued emphasis on clearly separating esports from online money gaming is critical in preserving the integrity of competitive gaming as a skill-driven discipline.” He described it as “a proud moment to see official acknowledgement of the broader benefits of responsible esports and gaming, from building confidence, discipline, and teamwork to creating new career pathways for young talent,” and said the framework sets “a strong foundation for the ecosystem to scale in a more structured and globally competitive manner.”
Animesh Agarwal, co-founder and chief executive of S8UL, was equally bullish. “This clarity is critical in unlocking investor confidence and attracting multi-genre brands, while also enabling organisations to take a more long-term view, whether in investing in talent, scaling teams, or building globally competitive formats,” he said, adding that it “strengthens trust among audiences and mainstream stakeholders, positioning esports not just as a sport, but as a fast-growing youth entertainment category in India.”
But Agarwal urged caution on several fronts. There remains limited clarity around financial frameworks, particularly in how esports earnings are treated by banks and financial institutions. A well-defined pathway for the formal recognition or registration of esports teams is still evolving, as are structured player protections. He also called for smoother visa processes for esports athletes competing in international tournaments and for government support in developing infrastructure, including bootcamps, training facilities, and access to high-performance equipment across titles.
Vishal Parekh, chief operating officer of CyberPowerPC India, pointed to downstream effects on education and careers. “With formal recognition and policy backing, colleges and institutions are more likely to take the sector seriously, whether through dedicated esports infrastructure, training programmes, or curriculum integration,” he said, adding that this helps students view gaming as a viable career spanning roles across competitive play, content, game development, and allied industries. He noted that as esports gains prominence in global multi-sport events, the framework strengthens India’s position in international competitive gaming, and called on the ecosystem to provide the right infrastructure and access to high-performance hardware to unlock opportunities in talent development and job creation.
Protecting users, one safeguard at a time
The rules introduce a layered system of user protections calibrated to the risk profile of each game. These include age verification, age gating, time restrictions, parental controls, user reporting tools, counselling support, and fair-play and integrity monitoring. Service providers must disclose their safety features and internal grievance mechanisms when applying for determination or registration.
A two-tier grievance redressal system sits atop these safeguards. Users who are dissatisfied with a platform’s resolution can escalate to the authority within 30 days. The authority aims to dispose of such appeals within a further 30 days. A second appeal lies before the secretary of MeitY, who must also endeavour to resolve matters within 30 days. Enforcement proceedings will be conducted in digital mode wherever possible, with cases targeted for resolution within 90 days from receipt of a complaint.
Penalties under the framework are proportionate, taking into account gain from non-compliance, loss to users, the gravity of the offence, and whether violations are recurring. Mitigation efforts by service providers will also be considered when determining penalties. All penalties imposed under the Act will be credited to the Consolidated Fund of India.
The money follows the rules
For investors and founders, the implications are immediate and significant. Sagar Nair, head of incubation at LVL Zero Incubator, a 100-day sprint designed to accelerate early-stage gaming startups across India, argues that with real-money gaming now prohibited, capital will shift “away from transaction-driven models toward content-led, IP-driven, and global-first gaming businesses.” He acknowledged trade-offs: for operators with exposure to real-money formats, the market becomes more restrictive in the near term. But he argued that by clearly separating esports and non-money gaming from online money gaming, “India is positioning itself as a hub for responsible, creative, and scalable game development.” The opportunity, he said, is “to view India not just as a monetisation-first market, but as a talent, IP, and scale market,” adding that “for founders and investors willing to adapt, this shift could ultimately strengthen India’s position in the global gaming landscape.”
The government frames the wider impact in equally ambitious terms: a boost to India’s creative economy and digital exports, new career pathways for young people, protection for families from predatory platforms, and a stronger voice in global digital governance. India, it argues, offers a model for other countries grappling with the same tensions between gaming’s economic promise and its social risks, one that shows innovation and strong safeguards need not be mutually exclusive.
Whether the framework delivers on those promises will depend on enforcement, always the hardest part. But from today, the architecture is firmly in place: a regulator with teeth, a classification system with deadlines, penalties designed to deter, and a clear dividing line between games that build careers and games that destroy finances. For a sector that has grown fast and governed itself loosely, May 1st, 2026 is the day the free ride ends.
