‘Indian gaming industry set to grow 20% by FY25’
   Date :10-Jul-2024

Indian gaming industry
 
INDIAN gaming industry is poised to recorda20 per cent growthtoreachRs23,100crore by FY25, a report on Tuesday said, citing industry estimates that number of online gamers in India has touched 442 million, surpassing China. The report by Grant Thornton Bharat and EGaming Federation further advocated a comprehensive Code ofConduct(CoC)forthe gaming industry, setting clear standards for ethical behaviour to ensure accountability and transparency. The dynamic gaming landscape in India is fuelled by a vibrant young demographic and set for unprecedented growth, the report said.
 
“Theindustry is projectedto experiencea20percentgrowth by FY25, reaching Rs 23,100 crore. Over the last five years, Indiangaminghas raisedUSD 2.8 billion from domestic and global investors,” it added. According to industry estimates, the number of online gamers in India has reached a soaring 442 million, surpassing China, making a case for adherence to a strong code of conduct and embracing selfregulation to ensure sustainable growth of this industry. The real money gaming (RMG) segmentis emergingas one of the chief revenue drivers within the industry. “With users spending an average of 8.5 hours per week in FY22, this segment is gaining significant traction,” the report said. ItnotedthatIndia’sRMGsector faced several challenges in 2023.
 
Thegovernment’simplementation of a 28 per cent Goods and Services Tax (GST) “significantly impacted” the sector, leading to widespread layoffsandtheclosure of some start-ups due to the tax burden.“Despitethesechallenges, thesectorcontinuestoaccount for 83-84 per cent of the revenue, with approximately 100 million online gamers daily, including 90 million paying to play,” it said. This gamer participation ensures that the industry’s expansion continues, with the tax implications having a limited impact on overall long-term growth. “Even after the 28 per centGSTimplication,investor sentiment remains strong in theindustry, with deal activityreflectingconfidenceinitssustained growth,” it noted.
 
The report underscores theimportanceofthird-party certificationforfosteringself-regulation and maintaining highindustry standards. “TheCoCaddresseskeyriskssuch as cyber threats, regulatory uncertainties, and financialrisks,offeringbestpracticesto mitigate these challengesand ensure the industry’s sustainability and growth. “By emphasising robustplayerprotectionmechanisms, thereport highlightsproactivemeasuresandeducationalinitiatives, calling for collaboration among industry players, regulators,andpolicymakerstocreate a safer, more responsible gaming environment,” asper the report.