Read: 1467
The online gaming industry in India has experienced remarkable growth, showcasing a promising economic landscape. The country boasts an extensive gaming community, ranking second globally only to China with over 425 million gamers. This sector is poised to attract foreign investments, create employment opportunities, and stimulate growth across various sectors including fintech, cloud services, data analytics, cybersecurity, among others.
From FY2023's fiscal year FY20 up until the current financial year FY24, the online gaming industry has witnessed a consistent Compound Annual Growth Rate CAGR of 28. This momentum led to an expansion of the market size by INR16,428 crore in FY23. Industry forecasts predict that this segment will reach INR33,243 crore by FY2028, projecting a CAGR of approximately 15.
Notably, investments totaling INR22,931 crore have been attracted between FY20 and the current fiscal year's date FY24 YTD from both domestic and international investors. The online gaming industry directly employs roughly one lakh individuals and has the potential to expand employment opportunities to 250,000 by 2025.
Regulatory Framework:
The Intermediary Guidelines and Digital Media Ethics Code Rules of 2021 issued by the Ministry of Electronics and Information Technology MeitY are viewed as progressive guidelines med at removing ambiguities, boosting investor sentiment, attracting funding, encouraging innovation in India's digital economy while prioritizing user safety.
Key Developments:
In the 50th GST Council meeting, a proposal suggested increasing the tax rate on online gaming to 28. Due to disagreements over valuation bases, implementation decisions were left at the discretion of the GST Council. Subsequently, during the 51st GST Council meeting, final decisions on the increased tax rate and valuation were confirmed.
Measures for Addiction Management:
Addressing addiction concerns involves measures such as rsing awareness, setting sping limits based on various factors, implementing age restrictions, among others to ensure sustnable growth in the online gaming segment.
In , India's online gaming sector holds significant potential for economic development through innovative strategies that balance user safety with industry growth. This includes fostering a conducive regulatory environment, attracting investments, creating employment opportunities, and managing addiction risks responsibly.
Download full document PDF 2 MB
Summary
provides an overview of the flourishing online gaming industry in India. It highlights its economic impact on sectors like fintech, cloud services, data analytics, cybersecurity, etc., and discusses regulatory measures taken by the Ministry of Electronics and Information Technology MeitY to ensure user safety while encouraging innovation.
About
EY India
Multidisciplinary professional services organization
Related topics
LinkedIn
This article is reproduced from: https://www.ey.com/en_in/insights/media-entertainment/new-frontiers-navigating-the-evolving-landscape-for-online-gaming-in-india
Please indicate when reprinting from: https://www.05aq.com/Page_Game/India_gaming_industry_growth_and_regulation.html
Indian Online Gaming Market Expansion 28 CAGR in Gaming Industry Growth Governments Role in Gaming Regulation Investments in Indias Gaming Sector Employment Potential in Online Gaming Managing Addiction Risk in Gaming