Gaming industry hit Rs 16,428 cr in FY23, per EY

The online gaming industry in India has witnessed an unprecedented surge, growing at a Compound Annual Growth Rate (CAGR) of 28% over the past three years. According to the latest EY report titled ‘New frontiers - Navigating the evolving landscape for online gaming in India,’ the industry has skyrocketed to Rs. 16,428 crore in FY23 and is poised to reach Rs. 33,243 crore by FY28.

This phenomenal growth is attributed to several key factors, including the widespread adoption of smartphones, improved internet connectivity, a burgeoning youth population, and the development of localized gaming content. The COVID-19 pandemic has further accelerated the trend, prompting a significant increase in mobile game downloads as people sought digital entertainment.

India has firmly established itself as a 'mobile-first' gaming market, with a staggering 94% of gamers engaging in mobile gaming. Despite the exponential rise in game consumption, the country's online gaming revenue represents a mere 1.1% of the global online gaming revenue.

The sector has become a magnet for investments, with the report indicating an expected inflow of Rs. 22,931 crore between FY20 and FY24 from domestic and foreign sources. Currently providing employment to approximately one lakh individuals, the industry has the potential to create job opportunities for 2,50,000 people by 2025.

Raghav Anand, Partner at EY Parthenon, emphasized, “India's online gaming segment is witnessing remarkable growth, signaling significant economic potential. With an extensive gaming community of 42.5 crore gamers—ranking second globally after China—the sector is poised to accelerate Foreign Direct Investment inflows, job creation, and investments across various sectors. However, a stable regulatory framework is crucial for sustained growth. Uncertainties could hinder its full potential and scalability."

Guidelines set forth by the Ministry of Electronics and Information Technology have played a pivotal role in fostering investor confidence, attracting funding, and promoting innovations while ensuring user safety within the gaming ecosystem.

The exponential growth of online gaming is not only catalyzing the sector but also triggering a ripple effect across ancillary industries such as fintech, cloud services, data analytics, and cybersecurity. This robust growth signifies a promising landscape for future investments and overall economic development in India's digital economy.