Booming Indian Gaming Market Predicted to Reach $4.5 Billion by 2025, According to AIGDF
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In an exciting turn of events, India's gaming industry is experiencing unprecedented growth, according to a recent report by the All India Game Developers Forum (AIGDF). The sector, valued at around $3.8 billion in 2025, is projected to reach $3.9 billion by the end of the year, making it one of the fastest-growing sectors globally.
The boom in the industry is primarily driven by a massive base of 570 million gamers, with 90% of them using smartphones. This growth is supported by widespread internet penetration, with 800 million users and 85% 4G/5G coverage, and the availability of affordable smartphones.
The employment potential of the gaming industry is significant, with projections of up to 250,000 jobs by 2025, spanning game development, esports, and ancillary services. The sector is also seeing growing interest from both domestic and international investors, fueling innovation and market expansion.
More than 400 real money gaming (RMG) startups are active in India, contributing to this robust investment ecosystem. The government's supportive role extends to regulation and tax policy, with recent discussions on increasing the GST tax rate on online gaming to 28%. While this could impact profitability, clear tax structures are believed to ultimately increase transparency and confidence in the sector.
The government is also focusing on user protection measures, such as age restrictions and addiction awareness, indicating balanced support aimed at sustainable growth. Prime Minister Narendra Modi, among others, has shown support for the gaming industry's growth in India.
Several companies, including Nazara Technologies, are investing in the gaming industry in India. Notably, Nazara Technologies has decided to expand its gaming business overseas, reflecting the industry's transformation and global potential.
Online games, commonly termed as Massively Multiplayer Online Games (MMORPGS), have become the new normal, replacing Single Player games that once dominated the market. The Indian gaming market's growth is expected to continue, with mobile gaming and esports at the core of continued expansion and innovation.
This promising future trajectory for India's gaming sector is a significant story in the industry, and Roy D'Silva, a published author with a decade-long experience covering various beats, including Bollywood, OTT, and now poker, aims to be at the forefront of this story.
The global video gaming market, valued at $199.74 billion in 2022, is projected to reach $307.19 billion by 2029, growing at a 6.3% Compound Annual Growth Rate (CAGR). India's gaming industry's growth is a testament to this global trend and a promising sign for the country's digital economy.
This article was published on November 21, 2024.
References: 1. India's Gaming Industry Report 2024 2. MeitY's Intermediary Guidelines and Digital Media Ethics Code Rules, 2021 3. Investments in India's Gaming Industry 2020-2024
Technology plays a crucial role in the flourishing of India's gaming industry, with 800 million users and 85% 4G/5G coverage, enabling affordable smartphones and widespread internet penetration. Amidst this booming sector, there's rising interest in casino-and-gambling, with growing investment in casinos from companies such as Nazara Technologies, planning to expand their gaming business overseas. Finance also becomes an integral part of this growth, as the government contemplates increasing the GST tax rate on online gaming to 28%, aimed at fostering transparency and confidence within the industry.
