Primus Partners presents its latest report, titled "India's Booming Online Gaming Industry-A Potential Powerhouse," highlighting the explosive growth of India's online gaming sector.
India's online gaming industry is experiencing explosive growth, poised to be a significant contributor to the nation's economic development. The online gaming industry occupies a fascinating space, drawing from and feeding into two major creative sectors: Media & Entertainment (M&E) and Animation, Visual Effects, Gaming, and Comics (AVGC). The share of online gaming in GDP has seen a growth of 27.5 percent CAGR from 2019 to 2022. Revenue of Indian online gaming market is expected to reach USD 2.4 billion by FY2029, reflecting a robust 20 percent CAGR from 2017 to 2029.
Over the past 12-18 months, extensive discussions within the GST Council have led to modifications in the online gaming sector's tax structure. In August 2023, the 51st GST Council meeting recommended changes to GST laws concerning the taxation of ‘actionable claims’ on Real Money Gaming (RMG) platforms. These changes impose a 28 percent GST rate on the entire deposit amount. In response to these new GST regulations, online gaming platforms are reassessing their operational strategies and business models. Read Now!
