India’s online gaming sector

​Getting to a new level in India’s online gaming sector


There is much potential in India to shape the future of the gaming industry


India as a prominent global gaming hub


1 The Prime Minister’s vision to establish India as a prominent global gaming hub has received renewed attention as he engaged with seven of the top gamers in the country. 



Modi discussed the trajectory of the gaming industry and sought to understand the challenges they encounter, particularly on the distinction between skill gaming and gambling (game of chance) —



The online gaming industry 


1 it forms a critical part of the Digital India vision and initiative. 



2 Modi's discussion included the opportunity offered by the increasing number of games based on Indian mythology and the scope to encourage the participation of women, besides fostering innovation. 


3 The players also highlighted the issue around the perception of gaming as a career in India.


Rapid growth


Online gaming trade 


1 The online gaming industry in India has seen a rapid expansion of 28% CAGR between FY20 and FY23. 



2 Projections indicate further growth to ₹33,243 crore by FY28, with a sustained 15% CAGR. 


3 This sector not only attracts significant foreign and domestic investments but also generates substantial direct and indirect employment.


.4 , while the size of the global gaming industry crossed $300 billion in 2021 — more than the combined markets for the movie and music industry —


 5 the online gaming segment in India constitutes 1.1% of the global online gaming revenue.



Importance for India 


1 Not only is online gaming a multi-billion opportunity for Indian start-ups but it can also form an important part of ‘India Techade’ and the goal of a $1 trillion digital economy. 


2  The sector has witnessed an array of positive developments, including the 

  • establishment of the Animation, Visual Effects, 
  • Gaming, 
  • Comic



3 nodal ministry and regulation , tax 

Extended Reality taskforce by Ministry of Information and Broadcasting,


 the identification of the Ministry of Electronics and Information Technology as the nodal ministry . 

 the introduction of a series of regulations through the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

 clarification around the ambiguity अस्पष्टता concerning tax deduction at source on winnings.


Issues that need scrutiny

there are unresolved issues 

1 despite the provision of self-regulatory bodies within the IT Rules of 2021 try to regulate the industry . 


2 In an industry driven by innovation and fast-evolving technology, the role of self-regulation is crucial. 


3 NITI Aayog  says -  online fantasy gaming sector we  also proposed a self-regulatory model of governance with a self-regulatory organisation at its helm.


4 recent revisions in taxation 



During the Goods and Services Tax Council meeting in July 2023, the Council decided to enforce a tax rate of 28% on the total face value of bets (effective October 1, 2023) regardless of whether the activity is classified as a game of skill or chance. 


Before this, online gaming firms in India were subjected to an 18% GST rate since the introduction of the indirect tax system in July 2017.


Soft power



By remedying these deficiencies

 India stands at a distinctive juncture to emerge as a prominent global gaming hub. 


1 tapping India’s rich cultural heritage 

Another advantage lies in tapping India’s rich cultural heritage (stories, legends, and folklore). With an increasing number of games inspired by Indian mythology, there is a unique opportunity to cater to domestic and international audiences



2 participation of women  

Furthermore, there is a concerted effort to encourage the participation of women in the gaming industry, fostering diversity and inclusivity. 


3 viable career option evolve 

As perceptions about gaming as a viable career option evolve, India stands to benefit from a growing pool of talented individuals driving innovation and pushing boundaries in the gaming landscape.


what we can do 

  • enhance environment for skill gaming, 

  • promoting diversity and inclusion, 

  • and capitalising on its rich cultural narratives,

  •  India achive  $1-trillion digital economy but also shape the future of gaming on a global scale.


Source the hindu

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