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In the last few years, the Indian gaming industry has witnessed a meteoric rise. The evolution of gaming from a casual pastime to a legitimate career has been a remarkable journey. This journey has faced loads of ups and downs, and this rise was initiated when streamers joined the industry and started earning money from playing games. That was the key point where the entire thing took a turn and became one of the most flourishing sectors to boost economic growth. Now, this industry has reached a point where even the government is recognizing it as one of the potent earning sectors and has imposed a 28% Goods and Service Tax on online gaming.
The perception of gaming in India has shifted dramatically. This change was massively unanticipated, but starting from the COVID-19 period, a group of youngstars shifted toward gaming and explored the different opportunities that gaming opens up. A lot of reports show this growth through proper data, but the most convincing among them was the report by the Egamers and Players Welfare Association (EPWA). Their survey shows that 83% of respondents consider gaming as either a primary or secondary source of income.
The most notable part of this survey is that among this 83% of gamers, 39% view it as their main profession. The remaining 44% see it as supplementary income. To further analyze this trend, one can consider the data from HP India's Gaming Landscape Study 2023. This data again highlighted that over 52% of Indian gamers now regard gaming as a viable career choice.
The best part is that gaming can earn gamers more annual income than many other conventional earning sectors. Almost all the studies done during 2023-2024 have revealed that 40% of serious gamers reported annual earnings between ₹6 lakh and ₹12 lakh. This figure is huge, and this amount is earned by young gamers as well. So, these reports reveal the growing acceptance of gaming as a profession in the country.
Aside from gaming, another thing that India has witnessed significant growth in is crypto. The more crypto blockchains started getting popular, the more blockchain gaming has contributed to the rise of the overall growth of the gaming industry. With blockchain gaming, users got introduced to terms like decentralization, true asset ownership, and play-to-earn (P2E) models, etc.
The primary aspect behind this exceptional growth of blockchain gaming is that, in general, gaming doesn’t allow players to own in-game assets, but with the blockchain technology involved in gaming, gamers can now secure ownership through non-fungible tokens (NFTs) and smart contracts. This has created new revenue opportunities for gamers and developers alike.
Another aspect of blockchain gaming is that it introduced innovation in game economies by allowing the seamless trading of digital assets across platforms. This trend fosters a more open and player-driven market. The transparency and security that is generally provided by blockchain significantly reduces fraud and cheating. When cheating is not there, trust is enhanced in online gaming, making it a more potential sector where users can spend time and earn money.
The next thing that has boosted the growth of blockchain gaming and contributed to the overall growth of online gaming is the integration of cryptocurrencies. This integration makes microtransactions easier without intermediaries. This effectively reduces costs and expands global accessibility. With major studios and indie developers exploring blockchain-based games, the industry is experiencing new levels of engagement, investment, and sustainability, shaping the future of gaming beyond traditional models.
As the gaming industry has been gaining popularity with each passing day, the Indian government has recognized it as one of the sectors that generates revenue. That’s kind of an achievement, one can say, as with the imposition of GST, the Indian government has been acknowledging gaming as a legitimate sector. However, the decision to impose a uniform 28% GST on online gaming and gambling has sparked intense debate.
Well, taxes were there from the beginning, but with the new regulations, it was extended. While previously, skill-based games were taxed at 18% on the platform fee, the new regulation extended it to a 28% tax on the total bet value. This sudden shift has raised concern among industry stakeholders.
Of course, the negative impact is larger than the positive ones. The All-India Gaming Federation (AIGF) has straightforwardly described it as "unconstitutional." Well, their concern is not fake as well. It is a serious issue, in fact. This raised GST may lead to massive job losses and once again cause gaming to lose the track.
This increased GST percentage will push players towards unregulated offshore platforms. Even these same concerns have been echoed by the Federation of Indian Fantasy Sports (FIFS). This organization has emphasized that the increased tax burden might deter investments and stifle the industry's growth.
To sum up, the Indian gaming industry has witnessed a massive shift in recent years and a rise up to an acknowledged platform to earn money. However, the GST has brought us to a crossroads where collaborative efforts from the government and industry players can pave the way for a thriving ecosystem. However, there’s no denying that the recognition of gaming as a legitimate source of earning not only helps gamers to earn money, but it will impact the economy as well.
