India’s online gaming industry is estimated to double to INR 66,000 crore by 2028, with the potential to create an additional 2 to 3 lakh jobs in the next few years.
Industry leaders advocate for clear regulations to promote responsible gaming and encourage innovation amid regulatory challenges.
Real-money gaming to grow at a reduced CAGR of 10% between 2024-28 due to GST impact.
The report identifies nine key challenges for the Indian gaming industry and offers strategies to address them.
New Delhi, 14 October 2024: PwC India launched a 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 shares insights into the evolving global as well as Indian gaming market. It also discusses the ways in which gaming is helping India drive the Viksit Bharat journey, and elaborates on the various challenges being encountered by gaming companies. The report recommends a set of actions to be executed collectively by gaming companies, gamers, platform providers, governments and other stakeholders to build a vibrant and responsible gaming ecosystem.
Manpreet Singh Ahuja, TMT Sector Leader and Chief Digital Officer PwC India, commented, “The influx of capital is creating a significant economic impact on the gaming sector, driving growth and opening up new opportunities across multiple industries. India, with its skilled talent pool and large domestic market, is at a pivotal moment to solidify its position as a global gaming powerhouse. By focusing on skills development, infrastructure, and fostering innovation and entrepreneurship, we can unlock the full potential of this industry. It’s essential to nurture a vibrant gaming ecosystem, promote e-sports at the grassroots level, and attract foreign investment. Building responsible gaming practices and robust player protection policies will be crucial to maintaining trust and ensuring the industry’s sustainable growth.”
The Indian gaming landscape, despite facing several challenges, is experiencing a period of steady growth, with the potential to evolve into a dominant force in the global arena. It is fuelled by a potent combination of factors, including a burgeoning young population with high digital fluency, widespread access to affordable mobile data, and a thriving startup ecosystem.
While the global gaming revenues grew from USD 219 billion in 2019 to USD 342 billion in 2023, and are estimated to grow at a compound annual growth rate (CAGR) of 8% to USD 503 billion by the end of 2028, the total size of the Indian online gaming market was INR 33,000 crore in 2023, estimated to reach INR 66,000 crore, growing at a CAGR of 14.5% between 2023–2028. The realisation of this potential value will be heavily dependent on seizing the opportunities while addressing the challenges highlighted in the report.
As per the report, the real money gaming (RMG) market - the largest sub-component of India’s online gaming market - is predicted to reach INR 26,500 crore by 2028. The gaming industry’s growth is also having a transformative impact on the Indian economy, generating an additional 2–3 lakh direct and indirect jobs in the next few years. Global investors see value in this sector and have invested a staggering USD 2.8 billion in investment over the past five years. The growth primarily hinges on resolution of the taxation issues and regulatory clarity.
The report identifies nine key challenges for the Indian gaming industry and offers strategies to address them. These include regulatory fragmentation, building sustainable business models due to the high GST impact, navigating ethical issues in monetisation, and addressing the talent gap. Other challenges are balancing stakeholder interests, managing player engagement and mental health, creating culturally relevant games with global appeal, changing societal perceptions of gaming careers, and tackling illegal gambling and ads. Mitigating these challenges is crucial for the industry’s sustainable growth.
To fully harness the immense potential of the Indian gaming industry, PwC recommends enacting a robust, national-level regulatory framework for online gaming. This framework should be accompanied by the formation of an interdepartmental committee to address concerns. The report also envisaged the need for a clarification on GST demands for the period between 2017-2023 to ensure a steady flow of investments and promote ease of doing business in the sector.
Note to the Editor
This report, developed in consultation with the industry players, and experts, draws insights from over 20 gaming companies and 1,134 gamers across India. It provides a detailed analysis of the Indian and global gaming markets, including economic contributions, job creation potential, and the cultural impact of gaming in India’s Viksit Bharat journey. The report highlights key challenges and outlines strategies for fostering a responsible and sustainable gaming ecosystem.
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 152 countries with over 327,000 people who are committed to delivering quality in Assurance, Advisory and Tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
© 2024 PwC. All rights reserved.
Contact us
