The Indian online gaming industry is expected to generate some INR140bn (US$1.68bn) in taxes in the 2024-2025 fiscal year, and help create 150,000 additional jobs, a recent report estimates.
The report underscored that, while revenue generated from the online gaming industry in India is lower compared to China, the United States, Japan, and the United Kingdom, its growth rate in the past six years has been the highest, with a compound annual growth rate of 30 per cent from 2017 to 2023.
Regardless, the recent decision to impose a 28 per cent goods and services tax on the full deposit value in India’s online gaming sector has sparked concerns about its negative impact on the market’s development.
The study, developed by the EGROW Foundation and Primus Partners India spotlights the remarkable expansion of India’s online gaming sector and its main challenges, forecasting that the industry’s revenue will soar to $2.4bn by FY2029, marking a robust CAGR of 20 per cent from 2017 to 2029.
The online gaming sector’s contribution to GDP has surged, with a 27.5 per cent CAGR from 2019 to 2022. Fiscal gains from this boom include INR16bn ($191.6m) in GST collected from gaming companies in FY 2022-23.
Source: Asia Gaming Brief
