PwC : India's Gaming Industry set to double by 2028

India’s gaming industry, which surrounds both real money gaming (RMG) and casual gaming, is predicted to double its income over the next four years from its current base of Rs 33,000 crore. 

According to a report by PwC India, gaming sector’s revenues are anticipated to grow at a compounded annual growth rate (CAGR) of 14.5 percent between 2023 and 2028, driven by an expanding gamer base in the country. 

“Presently, India boasts 450 million gamers, a number that is expected to surpass 720 million by 2028, growing at a 10 percent CAGR”. 

By then, India’s gamer population is expected to exceed that of China.

RMG platforms generate incomes from online games where users make deposits, while casual gaming platforms depend on in-app purchases, ads, and subscriptions.

In 2023, the GST Council executed a 28 percent tax on online gaming, horse racing and casinos, most importantly Indian RMG firms. 

The national exchequer has seen a steady rise in collections following this tax. Before the tax hike, companies contributed Rs 7,200 crore in GST between FY2020 and FY2023. 

Since the new tax regime, monthly GST collections have rushed to Rs 1,100 to Rs 1,300 crore.

The report also spotlighted that four out of five funding deals in the sector were at the seed-stage level.

"Building responsible gaming practices and robust player protection policies will be crucial to maintaining trust and ensuring the industry’s sustainable growth," said Manpreet Singh Ahuja, TMT sector leader and chief digital officer, PwC India.