New Delhi, March 23 : Indiaâ??s interactive media market has expanded rapidly, with microdramas emerging as a $300 million segment within a year, a report said on Monday.

The report by Lumikai noted that a year ago microdramas were virtually non-existent as a category, but have since gained traction among mobile-first users seeking interactive and personalised content formats.

It is also estimated that Indiaâ??s interactive media economy is at $13.8 billion, growing at 17 per cent year-on-year across video, social media, gaming, animation/VFX and audio, driven by a base of 877 million smartphone users.

"Microdramas crossed $300 million in their first year, signalling a fundamental shift toward mobile-native, interactive formats," said Salone Sehgal, Founder and Managing Partner, Lumikai.

"The next phase of media evolution, powered by interactive formats and AI, is now underway in India," she added.

The report highlighted that microdrama platforms could scale up to $4.5 billion by 2030, with strong growth expected as short-form, vertical video storytelling gains popularity.

These formats, typically one-minute serialised episodes, have already clocked 450 million downloads and 100 million monthly active users, rivaling the early growth trajectory of OTT platforms.

Indiaâ??s free-to-play gaming market also recorded robust growth, rising 17 per cent year-on-year to cross $1.5 billion in 2025, and is projected to reach $3.2 billion by 2030, according to the report.

The report further added that around 555 million users played mobile games during the year, with one in four contributing to revenues through in-app purchases and advertising.

However, regulatory changes in real-money gaming have led to a shift in user behaviour.

The report pointed out that one in three users migrated to offshore betting platforms, spending up to Rs 10,000 per month in unregulated environments.

In the animation and VFX segment, Indiaâ??s $1.6 billion industry is increasingly focusing on original intellectual property as advances in AI reduce production timelines by up to 50 per cent.

The report also noted that niche digital platforms, including astrology and micro-learning apps are outperforming traditional social media in monetisation.

/IANS