The number of employees in India’s online gaming industry has experienced a 20-fold increase from 2018 to 2023, with a compound annual growth rate (CAGR) of 97.56 percent.
The report, published by the Foundation for Economic Growth and Welfare (EGROW Foundation) in collaboration with Primus Partners, highlights the online gaming industry as a key employment generator in the coming years.
The report did not reveal the number of employees in India’s online gaming industry.
Of particular note is the significant rise in the female workforce within the industry, which has seen a CAGR of 103.15 percent from 2018 to 2023.
“The Indian online gaming industry is a significant contributor to our economy and a vital source of employment and innovation. With 455 million gamers in 2023, India boasts the second-largest gaming community globally after China,” said Dr. Charan Singh, CEO & Founder Director of EGROW Foundation.
However, the report also pointed out several critical challenges facing the online gaming sector. Chief among these is regulatory uncertainty, compounded by delays in establishing Self-Regulatory Bodies under the IT Rules. This has negatively impacted business operations and allowed offshore operators to gain market share.
Another pressing concern is the recent amendment imposing a 28 percent tax on deposits. Some firms are advocating for a lower tax rate and a return to the previous valuation method based on gross gaming revenue to encourage growth and attract investment.
“Overall, the Indian online gaming industry offers a vibrant and promising landscape, full of potential for economic growth and job creation. However, navigating the recent changes in the GST framework will be crucial for online gaming platforms to maintain their growth trajectory,” said Nilaya Varma, Co-Founder & CEO of Primus Partners.
The report also projects that the online gaming sector’s contribution to the Media & Entertainment (M&E) industry will rise from 3.4 percent in 2019 to 10.5 percent in 2024 and 12.6 percent by 2026. Additionally, the sector’s contribution to the Animation, Visual Effects, Gaming, and Comic (AVGC) industry is expected to increase from 41 percent in 2019 to a remarkable 68 percent by 2026.
