The total size of the Indian online gaming market, which was at ₹33,000 crore in 2023, is estimated to reach ₹66,000 crore, growing at a CAGR of 14.5 per cent between 2023–2028, said a PwC India report.
The report, titled, “From sunrise to sunshine: The contribution of online gaming to the Viksit Bharat journey and India’s cultural power,” said the global gaming revenues grew from $219 billion in 2019 to $342 billion in 2023, and are estimated to grow at a compound annual growth rate (CAGR) of 8 per cent to $503 billion by the end of 2028.
As per the report, the real money gaming (RMG) market - the largest sub-component of India’s online gaming market - is predicted to reach ₹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 $2.8 billion in investment over the past five years. The growth primarily hinges on the resolution of the taxation issues and regulatory clarity.
Nine key challenges
The report identifies nine key challenges for the Indian gaming industry including 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.
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, 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.”
To harness the potential of the Indian gaming industry, the report recommends enacting a robust, national-level regulatory framework for online gaming, to 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.