In an era dominated by digital entertainment, India’s online gaming industry is experiencing unprecedented growth, fueled by a massive, youthful audience and innovative content strategies. Joydeep Mukherjee, Chief Marketing Officer of Deltatech Gaming, highlights the thriving state of this sector, which reached an impressive INR 16,428 crore in fiscal year 2023.
Youthful Energy Driving Growth
India, home to the second-largest gaming user base globally after China, boasts over 442 million gamers, predominantly under the age of 25. This demographic is reshaping how digital entertainment is consumed and delivered, leveraging the widespread accessibility of mobile technology. In 2020, India led the world in mobile game downloads, securing a 17% market share with 7.3 billion installs.
The Impact of Mobile Gaming
Mobile gaming has emerged as a crucial component of the Indian gaming landscape. According to Mukherjee, "The future of Indian gaming is undeniably mobile, fueled by a young, tech-adept audience that's not afraid to spend." The industry’s growth is further supported by an increase in in-game purchases and subscriptions, reflecting a shift in consumer behavior towards more integrated digital experiences.
Influencers Shaping the Market
Influencers and social media personalities play a pivotal role in the evolution of gaming in India. By endorsing games and fostering community engagement, they help to bridge the gap between traditional media and gaming, positioning it as a mainstream form of entertainment. Collaborations with celebrities like Arjun Bijlani and Karishma Tanna also help to attract non-traditional gaming audiences.
Contribution to Media and Entertainment
Online gaming is increasingly carving out a significant niche within the Media and Entertainment (M&E) sector. Mukherjee notes, "Online gaming allows for shorter, engaging bursts of entertainment that fit seamlessly into busy schedules," distinguishing it from more traditional entertainment forms that require longer time commitments. This accessibility, combined with the interactive nature of gaming, enhances its appeal and integration into daily life.
Financial Outlook Amid Regulatory Changes
Despite the recent hike in GST rates for real-money gaming services—from 18% of gross gaming revenue to 28% of buy-in value—the industry’s growth trajectory remains strong. The key to sustaining growth will be adapting to these regulatory changes while continuing to innovate and expand the market reach.
As the fiscal year progresses, the industry faces the challenge of balancing regulatory compliance with continued expansion and innovation. However, the long-term outlook remains optimistic, with continued growth expected as more consumers turn to gaming as a primary source of entertainment.
