India's Gaming Industry Predicted to Grow at 20% by 2025

India’s Gaming Industry Predicted to Grow at 20% by 2025

by Frank McDougall
in News
on 9 July 2024

India’s gaming industry is on track to reach a value of Rs 23,100 crore by FY25, with a projected growth rate of 20%, according to a report by Grant Thornton Bharat and E-Gaming Federation. The report emphasizes the importance of a strong code of conduct for ethical behavior and player protection.

Fuelled by a vibrant young demographic and the rise of online gaming, the Indian gaming landscape is set for unprecedented growth. Over the last five years, the industry has seen an influx of USD 2.8 billion in investments from both domestic and global sources.

The number of online gamers in India has surpassed that of China, reaching a staggering 442 million. This surge in users highlights the need for a comprehensive Code of Conduct (CoC) within the gaming industry to ensure accountability and maintain transparency.

The real money gaming (RMG) segment is a significant revenue driver within the industry, with users spending an average of 8.5 hours per week on gaming activities. Despite challenges such as the implementation of a 28% Goods and Services Tax (GST), the RMG sector continues to account for a majority of the industry’s revenue, with 90 million users paying to play.

While the GST has had some impact on the sector, investor sentiment remains strong, and deal activity reflects confidence in sustained growth. The report stresses the importance of third-party certification in promoting self-regulation and maintaining high industry standards.

To foster a safer and more responsible gaming environment, the report calls for collaboration among industry players, regulators, and policymakers. It highlights the need for proactive measures, educational initiatives, and robust player protection mechanisms to safeguard players from cyber threats, fraud, and unfair practices.

In conclusion, India’s gaming industry is poised for significant growth in the coming years, driven by a vibrant young population and the increasing popularity of online gaming. In order to ensure sustainable growth, the industry must adhere to a strong code of conduct and embrace self-regulation while prioritizing player protection and consumer rights.

Additional facts:

1. The mobile gaming segment in India is expected to lead the industry’s growth, with an estimated compound annual growth rate of 28% between 2020 and 2025.
2. The market for e-sports in India is also projected to expand, with the potential to attract investment and create employment opportunities for professional gamers.
3. The Indian government has recognized the potential of the gaming industry and has initiated efforts to promote it, such as the creation of a dedicated fund to support gaming startups.
4. Foreign gaming companies are increasingly looking to enter the Indian market, either through partnerships with local companies or by establishing their own presence in the country.
5. Gaming events and tournaments in India are gaining popularity, with a growing number of professional gamers and enthusiasts participating and spectating.
6. The Indian gaming industry faces the challenge of addressing concerns related to addiction and the impact of excessive gaming on mental health, particularly among young players.

Important questions and answers:

1. What factors are driving the growth of India’s gaming industry?
The growth of India’s gaming industry is primarily driven by the country’s vibrant young demographic, the rise of online gaming, and significant investments from domestic and global sources.

2. What is the significance of a Code of Conduct in the gaming industry?
A Code of Conduct is important for establishing ethical behavior, ensuring player protection, and promoting transparency within the gaming industry.

Key challenges or controversies:

1. Concerns regarding addiction and the impact of excessive gaming on mental health, particularly among young players.
2. The need for regulatory frameworks to address issues related to online gambling and real money gaming.
3. Copyright infringement and intellectual property rights violations in the gaming industry.
4. Balancing revenue generation and consumer protection in the gaming sector.

Advantages:

1. Economic growth and job creation opportunities.
2. Increased foreign investment and collaboration.
3. Platform for talent development in e-sports and professional gaming.
4. Boost to the digital economy and technological advancements.

Disadvantages:

1. Potential for increased addiction and negative impacts on mental health.
2. Regulatory challenges and concerns related to gambling and real money gaming.
3. Intellectual property rights issues.
4. Potential for fraudulent practices and cyber threats in online gaming.

The source of the article is from the blog jomfruland.net