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  • Nikita Nijjar

Gaming Industry in India: Analysis and Scope of Development 

Nikita Nijjar,

IILM University, Greater Noida

Gaming brings people together

- Lisa Su

Gaming Industry in India: Analysis and Scope of Development 

Introduction and Analysis

In recent years, the gaming industry within India has experienced notable expansion and evolution. Driven by the extensive integration of mobile phones and rising internet usage, the nation's gaming sector has grown quickly, drawing in a wide range of players.

The widespread availability of inexpensive smartphones and affordable mobile data plans has been a major factor in the rise in the popularity of mobile gaming among various age groups.

The Indian industry has grown at an astounding 28% Compound Annual Growth Rate (CAGR) between FY20 and FY23, demonstrating the sector's remarkable growth trajectory. Estimates suggest that by FY28, growth would reach ₹33,243 crore at a consistent 15% CAGR. [1]

Significant local and foreign investments are being drawn in by this amazing growth, which is also creating a large number of direct and indirect job possibilities.

With over 9.5 billion gaming downloaded apps and 568 million users, India is currently the biggest gaming marketplace in the world.

Due to the growing use of cutting-edge technologies like virtual reality (VR) and augmented reality (AR), which are predicted to completely change the way Indian gamers experience games, the Indian gaming business still has a ton of room to grow.

Partnerships, investments, and developments are anticipated to be major factors influencing how the gaming business in India develops going forward.

Factors Leading to the Rise of Gaming Industry in India

· Impact of Young People: The gaming industry in India grew significantly because of India's demographic dividend and rising disposable incomes. It was aided by the younger generation's propensity for gaming as well as the falling costs of smartphones and internet bandwidth.

· Better Internet and Connectivity: Online gaming is now available outside of major cities thanks to the growth of internet access in Tier-II and Tier-III cities.

· Cloud Game: Cloud gaming eliminates the need for players to purchase pricey gaming consoles or PCs by allowing them to access games on a variety of devices, including mobile phones, tablets, and low-spec desktops. Gamers can move between devices with ease and not lose their progress.

· Blockchain Integration: When blockchain technology is used in games, gamers can now own digital assets such as characters, in-game stuff, non-fungible tokens (NFTs), and numerous collectibles.

· Introduction of AR and VR Technology: By combining AR and VR, new gaming mechanics that take use of user interactions and physical movements will be introduced. Gamers will be able to interact with things, control virtual worlds, take part in public virtual areas, and work together to create cooperative gaming experiences.

· Covid 19: June 2021 KPMG report states that Indians median amount of time spent on online games grew from 2.1 hours a week prior to the quarantine to 4.5 hours throughout a month of the lockdown. The Covid-19 period of lockdown sped up the use of online gaming as a way of virtual stimulation and social connection.

· New Genres of Gaming: During the pandemic, the industry saw significant expansion thanks to the creation of new genres of gaming and enjoyable gaming experiences that drew in a larger audience.

· Introduction of E-Sports: The emergence of e-sports and competitive video gaming can be attributed to its inclusion as a medal event in major events such as the Asian Games 2023 and the Commonwealth Games 2022, which have enhanced e-sports' status and recognition as a valid sport.

Challenges in Gaming Industry in India:

· Ambiguity in Regulation and Unclear Policies: The absence of a unified and all-encompassing regulatory framework in India has left stakeholders in the gaming business uneasy and ambiguous.

· Challenges related to sustainability and taxation: Concerns over the industry's long-term viability have been raised by the recent implementation of 28% Goods and Services Tax (GST) on the whole face value of wagers, especially for smaller firms and participants.

· Connection Challenges: Even with the notable advancements, many regions of the nation still struggle to provide consistent, fast internet access, especially in rural and isolated locations.

· Game Availability: It might be difficult for game creators to create games and material that speak to India's many cultural and linguistic contexts. While several worldwide games fail to connect with Indian consumers on the same level as Ludo King, which has been effectively tailored to local preferences, many other games don't have the same success.

· Gaming Addiction: As the gaming business expands, there are justifiable worries about the possible dangers of addiction, especially for younger people. Among students in India, the frequency of internet gaming disorder varied from 1.3% to 19.9% for the teenage group.

· Maintenance of Games: Post-production is just as crucial to the game process of development as both production and pre-production. The game is continuously checked throughout the post-production phase to make sure it remains relevant.

Scope of Development for Gaming Industry

Although playing on a PC or game console does provide a seamless and unmatched experience when playing games, mobile gaming has become more popular in recent years.

In terms of both gamers and revenue, India's video game market grew at the quickest rate in Asia in 2023, according to Niko's 2023 India Games Market analysis.

The gaming population in India is predicted to reach 641.2 million by 2027, with a compound annual growth rate (CAGR) of 10.1% over a duration of five years. [2]

The largest share of this growth is likely to come from mobile gaming. As per the survey, 96.8% of all gamers in India play on a cellphone or tablet, making it a mobile-first market.

There are a few ways the growth of gaming industry can be better -

· Regulatory Clarity: Improving regulatory clarity is essential for the gaming industry, particularly with relation to the successful establishment of self-regulatory organizations that are required by the IT Rules of 2021.[3]

· Gaming Hubs: To promote creativity, teamwork, and talent development, establish specialist gaming hubs and startups in key cities. These hubs can offer game creators, companies, and aspiring professionals' tools, mentorship, and cutting-edge infrastructure.

· Promotion of Indian Culture: Encourage and provide incentives for game developers to produce games that draw inspiration from India's rich cultural legacy, mythology, and folklore.

· Creative Funding and Investment Mechanisms: To encourage game creation and businesses, promote alternative funding models such as crowdsourcing, investments from venture capital firms, and public-private collaborations.

· Supporting Women in Gaming: As a substantial 40% of the country's gamers are women, India can tap into a plethora of talent, a variety of viewpoints that can propel the gaming industry's expansion and success by encouraging and empowering women in the field.

· Collaborations: Encourage industry collaborations to explore the possibilities of gamification and serious games, which can lead to creative use of gaming technology in a variety of areas. These sectors include tourism, education, and hospitality.


In conclusion, the increase of mobile gaming, improved access to the internet, and the rise of fresh innovations like AR and VR have all contributed to the notable expansion and development of the gaming business in India.

Gaming Industry in India is said to become one of the biggest industries at a very high rate due to emergence of a lot of gamers in all ages engage in downloading and playing different games to reach other audiences.

Although the industry faces obstacles such as unclear regulations and gaming addiction, there is still room for growth in terms of regulatory clarity, the creation of gaming hubs, the promotion of Indian culture in games, innovative funding methods, the encouragement of women in gaming, and the promotion of cross-sector collaborations.


[1] The Hindu,, (last visited May 9, 2024)

[2] Olibr,, (last visited May 10, 2024)

[3] The Information Technology Act 2021, § 2, Acts of Parliament, 2021

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Kushagra Sinha
Kushagra Sinha

Very nice Article!!!

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