Posted by New Delhi: In the dynamic digital entertainment landscape, online skill gaming (Esports) has emerged as a driving force, captivating millions and reshaping how we engage with technology. As we navigate the opportunities and challenges of this burgeoning industry, it’s crucial to understand the profound economic impact of online gaming in India and its future projections.
The Indian gaming economy has experienced exponential growth in recent years, fueled by increasing smartphone penetration, rising disposable incomes, and a growing youth population. According to industry reports, the Indian gaming market is estimated to be worth over $1.5 billion, with projections indicating continued growth in the coming years.
The whopping amount is almost similar to the current value of the sports industry. As per a report released by GroupM ESP Sporting Nation last month, the Indian sports industry registered an 11% yearly growth, reaching a value worth Rs 15,766 crores – four times more than 10 years ago.
This comparison alone says a lot about the growth of Esports in the country.
Moreover, India is home to one of the world’s largest populations of gamers, with over 350 million individuals actively engaging in gaming activities across various platforms. This diverse demographic includes casual gamers, Esports enthusiasts, and professional gamers, contributing to the vibrant gaming ecosystem in the country.
Suresh Jain, Organisational Secretary, Bharat Vikas Parishad, has always been vocal about homegrown products and companies in the Indian economic space. Speaking at the National Economic Conclave organized by IFIE in Delhi, Jain spoke about the massive potential of Esports in India as well as the challenges it faces in this day and age.
“Central to this ecosystem are homegrown gaming companies like Gameskraft, which have been at the forefront of innovation and creativity. However, recent challenges, such as sudden changes in GST demands, have spooked homegrown game makers like Gameskraft. These GST demands threaten to disrupt their operations and pose a significant risk to the entire domestic gaming industry, which is still at a very nascent stage,”. said Jain.
From giving recognition to young creators (including Esports players) at the inaugural National Creators Awards last month to Prime Minister Narendra Modi’s groundbreaking dialogue with notable gaming personalities from the Esports industry, the government has taken a step in the right direction but more work is needed.
“The government must intervene with supportive policy decisions to provide stability and encouragement to indigenous gaming companies like Gameskraft, ensuring the continued growth and success of the Indian gaming ecosystem,” he added.
However, amidst the optimism surrounding the gaming economy, addressing challenges such as regulatory concerns, cybersecurity threats, and the need for responsible gaming practices is essential. One significant concern is the dominance of Chinese gaming platforms in the Indian market, raising concerns about data security and national sovereignty.
By promoting and supporting Indian gaming platforms and fostering an environment conducive to their growth and innovation, the full potential of India’s vibrant gaming industry can be harnessed while reducing reliance on foreign entities at the same time.
“The SOG Federation deserves commendation for its commitment to promoting ethical gaming and advocating for the indigenization of gaming platforms in India. Their dedication to fostering a supportive ecosystem for Indian gaming companies aligns perfectly with our vision for the industry’s future”, said Jain.
Looking ahead, the future projections for the economic impact of online gaming in India are highly promising. By 2025, it is estimated that the Indian gaming market could surpass $3.5 billion in revenue, driven by factors such as the growing popularity of mobile gaming, the emergence of esports as a mainstream phenomenon, and the increasing demand for interactive and immersive gaming experiences.
However, achieving these projections requires a concerted effort to promote indigenous talent, foster innovation, and create a level playing field for Indian gaming companies. This includes advocating for policies that support homegrown startups, investing in digital infrastructure, and raising awareness about the importance of supporting Indian brands.
The economic impact of online gaming in India is undeniable, with significant growth potential and positive implications for the country’s digital economy. As India embarks on an exciting journey, hopes are high for the transformative power of gaming, which has the capability of driving innovation, empowering communities, and shaping the future of entertainment in India.