The Foundation for Economic Growth and Welfare (EGROW Foundation), a public policy organisation, in collaboration with Primus Partners, a consultancy firm, today announced the release of their new research report titled ‘India’s Booming Online Gaming Industry: A Potential Powerhouse’. The report highlights the exponential growth and potential of India’s online gaming sector and its contribution to the AVGC (Animation, Visual Effects, Gaming, and Comic) industry, which is projected to rise 68% by 2026.
“The Indian online gaming industry is a significant contributor to our economy and a vital source of employment and innovation. With 455 million gamers in 2023, India boasts the second-largest gaming community globally after China. This thriving industry offers significant opportunities to attract FDI, create employment across various sectors and enhance investment. Additionally, it is expected to stimulate allied industries such as fintech, cloud services, data analytics, and cybersecurity.” Charan Singh, CEO and founder director, EGROW Foundation, said.
The findings of the research reveal that the online gaming industry is rising to become one of the key employment-generating industries in the next few years. The number of employees in the Online Gaming industry has grown at a CAGR of 97.5% from 2018 to 2023 exhibiting a 69.88% CAGR among the male workforce and an impressive 103.15% CAGR among the female workforce. The sustained growth across gender lines indicates the industry’s increasing appeal and its potential to drive further economic opportunities in the Indian labour market.
“Overall, the Indian online gaming industry offers a vibrant and promising landscape, full of potential for economic growth and job creation. However, navigating the recent changes in the GST framework will be crucial for online gaming platforms to maintain their growth trajectory.” Nilaya Varma, co-founder and CEO, Primus Partners, said.
During the research, the surveyed companies highlighted several key issues hindering the growth of the online gaming sector. The most prominent was regulatory uncertainty in the sector, exacerbated by delays in establishing Self-Regulatory Bodies under the IT Rules, which is negatively impacting business operations and allowing offshore operators to gain market share. Also, the retrospective taxation measures totaling INR 1.2 lakh crore issued to gaming companies threaten to erode economic value and potentially devastate the industry.