PwC India recently unveiled a comprehensive report titled “From Sunrise to Sunshine: The Contribution of Online Gaming to the Viksit Bharat Journey and India’s Cultural Power” at the Indian Gaming Convention in New Delhi. The report offers valuable insights into the evolving landscape of both the global and Indian gaming markets, underlining the sector’s potential to significantly contribute to India’s development goals.
Key Data Points from the Report:
Market Growth: The Indian online gaming market, valued at INR 33,000 crore in 2023, is projected to double to INR 66,000 crore by 2028, growing at a compound annual growth rate (CAGR) of 14.5%. In contrast, global gaming revenues surged from USD 219 billion in 2019 to USD 342 billion in 2023, with expectations of reaching USD 503 billion by 2028.
Real Money Gaming (RMG): The RMG segment, the largest within India’s online gaming industry, is forecasted to reach INR 26,500 crore by 2028, reflecting the sector’s robust growth trajectory.
Economic Impact: The gaming industry is anticipated to generate an additional 2–3 lakh direct and indirect jobs in the coming years, demonstrating its transformative potential for the Indian economy.
Investment Surge: Over the past five years, global investors have injected USD 2.8 billion into the Indian gaming sector, highlighting its attractiveness and growth potential.
Challenges Ahead: The Indian gaming industry faces numerous challenges, including regulatory fragmentation and uncertainty, which hinders growth and investment. Building commercially viable business models is also a concern, with the recent 28% GST levy and substantial tax demands creating unpredictable liabilities. The proliferation of offshore online gambling poses a threat to the Indian gaming community, while aggressive monetization strategies and lack of transparency erode trust. Additionally, companies struggle to secure skilled talent, and managing diverse stakeholder interests is becoming increasingly complex. Balancing player engagement with mental health issues and producing games with local cultural appeal but global relevance are also significant challenges. The report identifies nine critical challenges facing the industry, including:
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- Regulatory fragmentation
- High GST impact affecting sustainable business models
- Ethical monetization issues
- Talent gap
- Managing player engagement and mental health
- Changing societal perceptions of gaming careers
- Tackling illegal gambling and advertisements
Regulatory Recommendations: To support the industry’s growth, PwC advocates for a national-level regulatory framework for online gaming, along with the formation of an interdepartmental committee to address ongoing concerns. Additionally, clarification on GST demands for the period from 2017 to 2023 is essential to foster investment and improve the business environment.
Conclusion
As India positions itself as a global gaming powerhouse, it must focus on skills development, infrastructure enhancement, and the promotion of innovation and entrepreneurship. The insights from PwC’s report underscore the need for collaboration among gaming companies, gamers, platform providers, and the government to build a vibrant and responsible gaming ecosystem that can harness the full potential of this rapidly evolving industry.
