India’s Booming Gaming Sector
Short Notes or Revision Notes
Question : Analyze the potential impact of the gaming sector on India’s economy and the measures required to sustain its growth.
Context:
- India Gaming Report 2024 highlights the sector’s potential.
Major Findings:
- Market Size: Expected to reach USD 6 billion by 2028.
- Mobile Dominance: 90% of the market, compared to 37% (US) and 62% (China).
- Young Demographics: Nearly 50% of gamers are aged 18-30.
- Job Market Boom: 50,000-60,000 new jobs in development, programming, testing, etc.
Sector Highlights:
- World’s Largest Mobile Gaming Market (by downloads).
- Projected Growth: 20% by FY25, reaching INR 231 billion.
- Investment Boom: $2.8 billion raised by Indian gaming companies in the last 5 years.
- Gaming Unicorns: 3 Indian companies (Dream11, Mobile Premier League, Game24x7) have achieved unicorn status.
- Potential Impact: AI and online gaming could add $300 billion to India’s GDP by 2026-27.
Government Initiatives:
- Digital Gaming Research Initiative: Supports research & development in learning, leisure gaming, and immersive games reflecting Indian culture.
- AVGC Promotion Task Force: Promotes Animation, Visual Effects, Gaming, and Comics industries to leverage “Make in India” and “Brand India” initiatives.
Regulation of the Industry:
- Current Scenario: No uniform federal law for online skill gaming.
- Existing Laws: Public Gambling Act (1867) and Prize Competitions Act (1955) with variations by state.
- Recent Development: MeitY designated as the nodal ministry for online gaming, providing much-needed legitimacy.
- Upcoming Regulations: Draft regulations for online gaming intermediaries and a public consultation process.
Road Ahead:
- Growth Drivers: Increased internet usage, smartphone penetration, and rapid digitalization.
- E-sports, console gaming, mobile gaming, and game development all show promising growth.
- Advanced gaming experiences expected to propel the industry to new heights.