According to the report published by the Foundation for Economic Growth and Wellbeing (EGROW Foundation), in collaboration with Primus Partners, the online gaming industry is growing to become one of the key job-generating industries in the coming years.
Notably, the female workforce within the industry has increased, with a CAGR of 103.15 percent from 2018 to 2023.
"The Indian online gaming industry contributes significantly to our economy and is a vital source of employment and innovation. With 455 million players by 2023, India has the second largest gaming community globally after China," said Dr. Charan Singh, CEO and Founder. Director of EGROW Foundation.
Additionally, the report highlighted several key issues hindering the growth of the online gaming sector.
The most notable was regulatory uncertainty in the sector, exacerbated by delays in establishing self-regulatory bodies under IT standards, which is negatively impacting business operations and allowing offshore operators to gain market share.
Another lingering concern was the recent amendment imposing a 28 percent tax on deposits, as some companies seek a lower tax rate and a return to the previous valuation method based on gross gaming revenue to encourage growth and attract investments, according to the report. .
"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 to the GST framework will be crucial for platforms online gaming companies maintain their growth trajectory," said Nilaya Varma, co-founder and CEO of Primus Partners.
Furthermore, the report mentions that the contribution of the online gaming sector to the M&E (Media and Entertainment) industry is expected to increase from 3.4 percent in 2019 to 10.5 percent in 2024 and 12.6 percent in 2026.
The sector's contribution to the AVGC (Animation, Visual Effects, Games and Comics) industry is projected to increase from 41 percent in 2019 to a staggering 68 percent in 2026.
Notably, the female workforce within the industry has increased, with a CAGR of 103.15 percent from 2018 to 2023.
"The Indian online gaming industry contributes significantly to our economy and is a vital source of employment and innovation. With 455 million players by 2023, India has the second largest gaming community globally after China," said Dr. Charan Singh, CEO and Founder. Director of EGROW Foundation.
Additionally, the report highlighted several key issues hindering the growth of the online gaming sector.
The most notable was regulatory uncertainty in the sector, exacerbated by delays in establishing self-regulatory bodies under IT standards, which is negatively impacting business operations and allowing offshore operators to gain market share.
Another lingering concern was the recent amendment imposing a 28 percent tax on deposits, as some companies seek a lower tax rate and a return to the previous valuation method based on gross gaming revenue to encourage growth and attract investments, according to the report. .
"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 to the GST framework will be crucial for platforms online gaming companies maintain their growth trajectory," said Nilaya Varma, co-founder and CEO of Primus Partners.
Furthermore, the report mentions that the contribution of the online gaming sector to the M&E (Media and Entertainment) industry is expected to increase from 3.4 percent in 2019 to 10.5 percent in 2024 and 12.6 percent in 2026.
The sector's contribution to the AVGC (Animation, Visual Effects, Games and Comics) industry is projected to increase from 41 percent in 2019 to a staggering 68 percent in 2026.
