Indian Gaming Industry to Flourish to $8.92 Billion From $3.1 Billion: Report The Indian gaming sector is expected to grow to $8.92 billion in the next five years
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The Indian gaming industry is a booming market with 442 million gamers, second-largest in the world, only behind China. As per report by Grant Thornton Bharat and the E-Gaming Federation (EGF), via Business Standard (BS), The Indian gaming sector has raised a total of $2.8 billion from domestic and global investors, over the last five years, with real money gaming (RMG) segment being one of the chief revenue drivers.
The real money gaming (RMG) sector continues to dominate, generating 83-84 per cent of revenue, with a significant 100 million daily online gamers, including 90 million paying users. However, Indian RMG companies are facing a challenging 28 per cent tax on online gaming, which came into effect on October 1, 2023. Previously, skill gaming platforms paid 18 per cent GST on platform fees, also known as gross gaming revenue (GGR).
The new rules do not differentiate between games of skill or chance. Despite this, private equity and venture capital firms are investing heavily in the gaming industry, seeking early mover advantages. Specialised VC funds like Lumikai and Centre Court Capital are focusing on gaming, sports tech, and interactive media, while large PE funds are also investing in this space, indicating a likely surge in deal activity, said Vishal Agarwal, partner at Grant Thornton Bharat.
"However, gaps remain, necessitating a robust, clear regulatory landscape to support growth. Investors need careful diligence and structuring to address tax risks and comply with laws when investing in Indian gaming companies," he quoted via BS.
Game downloads also soared from 5.65 billion to 9.5 billion with India accounting for 16 per cent of global game downloads.
Significant growth
According to the EY-FICCI report, the number of employees in the online gaming sector was 100,000 in 2023, and this figure is projected to increase to 250,000 by 2025. The demand for skills such as fintech, game mathematics, product design, artificial intelligence, data science, and cloud computing has surged among online gaming professionals.
The report also highlights that the sector's contribution to the Media & Entertainment industry is anticipated to grow significantly, from 3.4 per cent in 2019 to 12.6 per cent by 2026. Additionally, its contribution to the Animation, Visual Effects, Gaming, and Comic (AVGC) industry is expected to rise from 41 per cent in 2019 to 68 per cent by 2026. Read more