Beyond screens, the gaming industry is a gateway to tomorrow's technology landscape. – Romil Ramgarhia
In the dynamic realm of technology and entertainment, India's gaming industry has emerged as a powerhouse, captivating millions and transforming leisure into a digital adventure. Romil Ramgarhia, Ex- COO of BARC India and a keen observer and participant in the gaming scene, takes us on a comprehensive journey through the current position, trends, and future trajectory of India's booming gaming landscape.
The gaming industry in India has witnessed an unprecedented surge, establishing itself as a significant player on the global stage. According to statista.com, in the year 2022, India witnessed a notable surge in online gamers, reaching a substantial 421 million, reflecting an 8% increase compared to the previous year. Projections indicate a continued upward trend, with expectations that the number will surpass 442 million by the year 2023. Remarkably, approximately 90 million of these online gamers opted to pay for their gaming experiences during that period. The market is teeming with a diverse array of games, platforms, and genres. From mobile gaming to PC and console gaming, the industry is experiencing robust growth, fueled by a burgeoning population of gamers.
Romil Ramgarhia acknowledges the driving forces behind this growth, citing the youthful demographic, advancing IT infrastructure, and increased mobile device usage with high-speed online connectivity. The infusion of cutting-edge technologies like VR, AR, and the metaverse into gaming emerges as a key driver, transforming the gaming experience and defining the industry's expansion. It is within the gaming industry that these technologies are likely to find their initial and most innovative applications before spreading to other sectors.
The gaming landscape in India is on a robust growth trajectory, with a compounded annual growth rate (CAGR) of 12%. According to the latest report by Dentsu titled "Gaming Report India 2022 - For the Game” Currently, ‘Real Money Game’ revenues make up 57% of the market size; however, future expansion is anticipated to be propelled by in-app purchases, projected to grow at an impressive 34% CAGR. In FY22, the conversion rate was marked by 120 million paying users, reflecting a substantial 24% conversion rate.
However, recent developments, particularly the Finance Ministry's imposition of a 28% GST on online gaming, cast a shadow on the optimistic projections and has made many people develop a negative stance.
Romil Ramgarhia, on a more positive note states, “For the gaming industry in India, the assurance of consistent regulations is far more favorable than the lingering uncertainty experienced in recent years. Despite facing a relatively high tax rate, the industry stakeholders, including developers and publishers, can gradually acclimate to the new regulatory regime. Over time, the community can devise financial models that harmonize with this framework, ultimately fostering the long-term well-being of the gaming sector. The key element here lies in establishing and maintaining certainty and stability within the regulatory setting.”
On the global stage, Romil Ramgarhia notes India's rising prominence in gaming, with developers, esports athletes, and content creators gaining recognition. Collaborations and partnerships at international gaming events showcase India's prowess, promising cross-cultural exchanges and opportunities for the Indian gaming industry to make a lasting global impact. As technology, social impact initiatives, and global collaborations continue to shape the industry, the gaming sector will chart new horizons and play a central role in India's digital narrative on the global stage.
