The online gaming industry has been a significant contributor to the exchequer and has been generating multiple job opportunities.
India’s online gaming industry has grown from strength to strength in the last few years but misguided interpretations have made it an uphill battle for online gaming platforms to gain legitimacy. Online games of skill like fantasy sports and online rummy have been equated with games of chance such as gambling and betting, leading to a negative perspective about the industry among policy-makers.
Here is how online gaming is actually doing more good for the country than it is given credit for
Generation of revenue: Poised to establish India as a global gaming hub, the online gaming industry has grown at a rate of 40% during 2019-20. Already having generated USD 1.5 billion, the industry is projected to exceed revenue figures of USD 5 billion by 2025, according to the BCG Sequoia Report. Considering that the industry operates in a regulated cyberspace, this means a sizable contribution to the exchequer in the form of taxes. Moreover, the winnings from the core gaming activities are also under the ambit of income-tax rules, contributing to the economy.
Infusion of FDIs: The unprecedented rise of the industry has made it a sought after option for investors globally. With the infusion of INR 10,000 crore to the economy, the industry is projected to attract another INR 15,000 crore by 2025. The stellar growth of the industry has set it up as a sunrise sector attracting FDIs, bolstering our economy.
Job creation: Spearheading the growth in the M&E sector, the expansion of the industry has created job opportunities at a massive scale. With 3000-4000 people directly or indirectly employed by the industry, the projected growth in creating jobs is expected to climb to more than 5,000 in direct employment and another 7,000 by way of ancillary jobs by 2023. With international studios such as EA and Ubisoft setting up gaming development centers in the country, there are now more than 15,000 developers in the industry. Individual content creators have also been able to capitalize on this monetization opportunity with the booming industry.
Make in India: Our PM has praised the efforts of innovators and developers in the industry to help realize his vision of a ‘Digital India’. The Government has also made strides in aligning the industry to this vision by constituting the Animation, Visuals, Gaming and Comic (AVGC) promotion task force. To enhance India’s global position in the sector in light of the meteoric growth of the industry, the task force is responsible for making institutional efforts to boost employment opportunities in the industry.
Creating a thriving ecosystem: As the industry grows, service providers & support sectors also benefit from the expansion. Creating a symbiotic module of progress with services such as fintech, cloud services, data analytics, and web development, the online gaming industry is also helping in the growth of these ancillary sectors.
Boon for 5G: While the advent of 5G services in India will be transformational for the online gaming experience, the industry will also serve as a major contributor by assuming the role of a revenue driver and financial incubator for 5G services. With latency soon to be a thing of the past, the industry can achieve newer heights and higher revenues.
The online gaming industry has been a significant contributor to the exchequer and has been generating multiple job opportunities, not just within its fold but across industries in the technology sector. Given the contribution of the industry, there is a need for a collaborative effort to help the sector progress further.
