`Workforce growth in Indian online gaming industry rose 20 times from 2018 to 2023`
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Workforce growth in the Indian online gaming industry has increased 20 times from 2018 to 2023, with a remarkable 97.56 per cent CAGR (compound annual growth rate) over the same period, underscoring the sector’s vital role in job creation, a new report showed on Tuesday.
According to the report released by the Foundation for Economic Growth and Welfare (EGROW Foundation), in collaboration with Primus Partners, the online gaming industry is growing to become one of the key employment-generating industries in the next few years.
Notably, the female workforce within the industry has surged, with a 103.15 per cent CAGR 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.
Moreover, the report highlighted several key issues hindering the growth of the online gaming sector.
The most prominent was regulatory uncertainty in the sector, exacerbated by delays in establishing Self-Regulatory Bodies under the IT Rules, which is negatively impacting business operations and allowing offshore operators to gain market share.
Another persisting concern was the recent amendment imposing a 28 per cent tax on deposits, due to which some firms are seeking a lower tax rate and a return to the earlier valuation method based on gross gaming revenue to foster growth and attract investment, the report said.
"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.
In addition, the report mentioned that the online gaming sector’s contribution to the M&E (Media & Entertainment) industry is projected to rise from 3.4 per cent in 2019 to 10.5 per cent in 2024 and 12.6 per cent by 2026.
The sector’s contribution to the AVGC (Animation, Visual Effects, Gaming, and Comic) industry is projected to rise from 41 per cent in 2019 to a staggering 68 per cent by 2026.
