By Anuraag Saxena
“Snatching defeat from the jaws of victory” is often quoted when describing India’s policy position on many issues historically. Beyond military, geopolitical, and diplomatic (mis)alignments, this adage has also been applied to India’s economic policies of the past — be it pledging our gold away, creating the Licence-Raj behemoth, demonising wealth creation, or overindexing on inefficient economic models.
In short, to paraphrase economist Angus Maddison, India has been very efficient at letting go of value it has created. Sadly, this is a behavioural pattern that we repeat to this day. India is home to 40% of the world’s gamers, but only 1% of the gaming revenues. Had this been any other sector, this would have offended us, and committees would have been set up to stem this drain. This significant difference emphasises the untapped potential for economic growth and development within the country.
However, India has also been flexing its muscle lately and has been extremely transparent about its economic ambitions. So, it is perhaps not too late for India to transform its gaming industry into a major economic powerhouse by addressing the key challenges and leveraging the burgeoning gaming community.
The key driver behind India’s massive gaming community is the country’s young and tech-savvy population. With the median age in India being 28 years, a large segment of the population is inclined towards gaming, as the go-to choice of entertainment. Our grandfathers listened to the radio, our fathers went to the cinema, we browsed the internet, and the next generation is choosing games. The increased penetration of smartphones and affordable internet access has contributed to the industry’s growth by making it more accessible. Despite these factors, India’s gaming industry has been unable to translate this success into an economic prospect.
The lack of effective monetisation strategies is a primary reason for India’s limited share of global gaming revenue. Indian gamers still prefer free-to-play and in-app purchases while premium gaming options have not gained popularity. Further, the gaming industry in India has been slow to embrace advanced monetisation methods such as advertising, subscriptions, and virtual goods sales. To address this revenue shortfall, gaming companies must innovate and explore various monetisation strategies that resonate with the Indian audience. It could involve tailored content, competitive pricing, and improving the gaming experience to encourage spending.
The industry also requires substantial investments in infrastructure and technology to compete globally. While there have been notable success stories, such as the rise of home-grown game developers and esports platforms, the industry still lacks the robust infrastructure available in more mature markets. Government support and private sector investments are crucial to building state-of-the-art gaming studios, research and development centres, and training facilities. Further, fostering a conducive environment for start-ups and providing access to funding and mentorship can spur innovation and drive growth in the sector.
A clear and supportive regulatory framework also is a necessary condition for the sustainable growth of the gaming industry. The Indian gaming sector faces regulatory ambiguities and inconsistent policies across different states, creating a challenging environment for businesses and hindering the industry’s overall development. Harmonising regulations at the national level and ensuring consumer protection through robust policies will instill confidence among investors and gamers alike. Further, addressing concerns related to data privacy, cybersecurity, and fair play will enhance the credibility of the Indian gaming industry.
To realise its potential as a global gaming powerhouse, India must adopt a multi-pronged approach that fosters innovation, attracts investments, and creates a supportive regulatory environment. Collaboration between the government, industry stakeholders, and academia can drive research and development, creating high-quality games and cutting-edge technologies. Moreover, promoting competitive gaming can boost revenue and position India as a hub for international gaming tournaments and events. This, in turn, will generate second-order effects, employment opportunities, inbound tourism, investments, and contribute to the country’s economic growth.
India’s gaming industry today stands like Yudhishthir stood before a yaksha. We need to answer some tough questions, not emotionally but rationally. The country has a unique opportunity to tap into this vast market and significantly increase its share of global gaming revenue. By addressing the challenges of monetisation, infrastructure, and regulation, India can unlock the full potential of its gaming industry and emerge as a formidable player on the global stage. The journey towards realising this vision will require concerted efforts from all stakeholders. However, the rewards—a thriving gaming ecosystem, economic prosperity, and global recognition—are worth the endeavour. India, the untapped giant of the gaming world, is ready to rise.
The author is CEO, E-Gaming Federation.
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