Explained: How Rapidly Is The Gaming Industry Growing In India

The Pandemic gave a boost to the gaming market in India and people are now more willing to pay to play. According to analysts, over 24 million Indians are added to the payment-linked gaming market.

The Indian gaming market is expected to grow from $2.8 billion in 2022 to $5 billion in 2025, growing at a CAGR of 28-30%. The quantity of gamers in the nation is supposed to expand from 420 million in 2022 to 450 million by 2023, and it hit 500 million by 2025.

what is Online Gaming?

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The term "online gaming" refers to games that can only be played with an internet connection. This is a part of the sunrise industry with a growing demand for game access.

With more than 13 crore players across more than 200 platforms, the nation is the world's largest fantasy sports market.

How big is the online gaming market in India?

The Indian mobile gaming industry is expected to reach USD 5 billion by 2025. Between 2017 and 2020, the country's industry expanded at a CAGR of 38%, compared to 8% in China and 10% in the US.

For the past two years, India's proportion of New Paying Users (NPUs) in gaming has grown at the fastest rate in the world, rising from 40% in 2020 to 50% in 2021.

Transaction-based games' revenues increased by 26% in India and the number of paying players increased by 17%, from 80 million in 2020 to 95 million in 2021, according to a report from EY FICCI (Federation of Indian Chambers of Commerce and Industry).

Why online gaming is growing in India?

Due to the restrictions and lockdown imposed by Covid 19, there were online schools and work-from-home and the growing popularity of digital payment contributed to increasing demand for online gaming.

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The gaming sector industry experienced growth resulting in an increase in investments to meet the demand. Tech companies also started taking an interest in it due to the potential for profitability.

According to the World Economic Forum (WEF), mobile devices are the primary driver of India's gaming industry. Smartphone use has prompted development in the gaming industry. Most games are played on mobile devices. Affordable internet and the availability of faster smartphones with enhanced gaming capabilities have also fuelled the market.

Laws to monitor the online gaming industry in India

Any online gaming platform (domestic or foreign) offering real money online games to users of India will have to be a legal entity incorporated under Indian law. The Prevention of Money Laundering Act of 2002 will treat these platforms as "reporting entities." These platforms will be required to notify the Financial Intelligence Unit India of any suspicious transactions.

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Most states allow skill-based games but some don't allow games of chance, which are considered gambling and immoral. Online gaming has always been regulated by the state, but state governments find it tough for them to enforce rules like geo-blocking certain apps or websites within their borders. Games of skill have been restricted in Assam, Andhra Pradesh, Nagaland, Odisha, Tamil Nadu, and Telangana.

In October this year, a final report detailing its recommendations for regulating India's online gaming industry has been prepared by a task force established by the Ministry of Electronics and Information Technology (MeitY). The recommendations include Central-Level Law for Online Gaming, a regulatory body for the Online Gaming Industry and Three-Tier Dispute Resolution Mechanism. MeitY may serve as the nodal ministry for the regulation of online gaming, except for the e-sports category, which falls under the purview of the Department of Sports.

What are the issues associated with online gaming?

An increasing number of people are developing online gaming addiction. Compulsive gaming by kids is influencing their exhibition in schools and affecting their social lives & relationships with family members.

Following incidents of violence and suicide, online games like PUBG and the Blue Whale Challenge were restricted. It is also said that this addiction is causing young people to have nearsightedness. Cheating, privacy violations, abuse, and bullying are all possible outcomes of the unintentional sharing of personal information. The arguably most popular Indian online game, ludo, has been the subject of controversy and allegations of betting and gambling.