How Gaming Will Fuel The AVGC Sector
On its way to achieve this, not only online gamers and streamers play an important role but also those too who wish to revamp the online games will hold a key responsibility
In recent years, the rise of new startups in India's online gaming industry has accelerated, positively impacting the economic trend of the country. It has undeniably become one of the most lucrative sectors in the world, by serving as a hotspot for tech enthusiasts and specialists alike. Interestingly, online gaming has also been one of the fastest growing divisions of the Indian media and entertainment business for the second year in a row. However, now as the gaming sector is growing at a faster pace, it has become important to sustain its pace and grow steadily. On its way to achieve this, not only online gamers and streamers play an important role but also those too who wish to revamp the online games will hold a key responsibility. Following are the key trends that will transform the overall gaming industry.
The sector has spurred the need of professionals through various direct job opportunities across the fields like technology, product, innovation, data, marketing, finance, HR, compliances, risk, customer experience etc. Game designers and developers however will have to take a dedicated, formal educational route to excel in this technical and fast-paced industry.
Specialists and professionals with backgrounds in Public Policy and Regulatory Affairs have recognised this sector as a potential to reach new heights.
Furthermore, the sector will also provide indirect job opportunities through ancillary industries such as telecommunications, marketing, financial services and banking, events, and real estate.
The Digital India initiative by the PM of our India which promotes internet access to citizens at affordable rates and smartphone penetration has been a game changer for this sunrise sector. We've seen more investment traction in gaming in recent years. According to EY the gaming industry surged 46% percent to INR 1100 crore in by 2025. Apart from this, increased overseas investments and partnerships have also begun to appear in this segment and the global giants are seeing a great potential in coming future. The fact that India has one of the world's largest and most youthful populations is a crucial factor in its growth. Investors now believe that India offers an untapped gaming market that has yet to be exploited.
According to the report launched by KPMG in 2022, India's online gaming market had revenues of INR 136 billion ($1.80 billion) in 2021 and is predicted to expand at a CAGR of 21% over the next five years to INR 290 billion ($3.84 billion). Now It is encouraging to see our government finally taking this long-overlooked sector seriously. By being one of the potential source of employment and FDI in India, the industry has a lot to offer to the business ecosystem in the upcoming future. It will not only provide new opportunities but will also lead to become a major contributor to the Government.
In addition to this, now that the industry is on the rise, imposing a reasonable GST value on the platform fee (Gross Gaming Revenue) would be a win-win situation for both operators and the government, resulting in increased revenue to the national exchequer and directly contributing to the government's vision of a trillion-dollar digital economy by 2025.
On a worldwide basis, online gaming is a generally well-regulated sector. Many foreign countries have established an organised and concrete legislative framework that allows for the industry's systematic expansion and supports governments' visions of developing and growing their economies.
Now the next stage of development will be heavily reliant on a well-defined regulatory framework. As this industry will be crucial in attaining the country's objective and achieving Digital India's vision. I am confident that a push from the federal government will serve as a catalyst for its growth and overall development.
The government should now strive to work cooperatively with industry stakeholders to build a regulatory framework that benefits all parties concerned. It will further help in overseeing the online gaming sector, including monitoring its actions, encouraging responsible gaming, safeguarding consumers and its stake holders.
(The given article is attributed to Ankur Singh, Founder & CEO, Witzeal Technologies and has been exclusively created for BW Businessworld)
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