The Gaming Industry’s Projected Growth by 2028 and Its Impact on Economic and Cultural Development
3 min readIndia’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: 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 how 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 of 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, and 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 realization 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 the 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 monetization, 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.
About Author
