A new study projects that the Indian online gaming industry will generate approximately INR 140 billion (US$1.68 billion) in taxes for the fiscal year 2024-2025, while also creating 150,000 new jobs.
A recent report suggests that India is one of the most important Asian gambling markets for 2024. The study projects that the Indian online gaming industry will generate approximately INR 140 billion (US$1.68 billion) in taxes for the fiscal year 2024-2025, while also creating 150,000 new jobs.
The report highlights that although India’s revenue from the online gaming sector trails behind that of China, the United States, Japan, and the United Kingdom, its growth rate over the past six years has been the highest globally. From 2017 to 2023, the industry experienced a compound annual growth rate (CAGR) of 30%.
However, the decision to impose a 28% goods and services tax (GST) on the total deposit value in India’s online gaming sector has raised concerns about potential adverse effects on market development.
The study, conducted by the EGROW Foundation and Primus Partners India, emphasizes the impressive expansion of India’s online gaming sector and its key challenges. It forecasts that the industry’s revenue will reach $2.4 billion by FY2029, maintaining a robust CAGR of 20% from 2017 to 2029.
Additionally, the online gaming sector’s contribution to GDP has seen a significant rise, with a CAGR of 27.5% from 2019 to 2022. Fiscal benefits from this growth included INR 16 billion ($191.6 million) in GST collected from gaming companies in FY2022-23.