look news india
SOGI: Skill Online Games Institute (SOGI), a leading organization focused on advancing knowledge and data-driven information for the online gaming industry, has advocated for balanced regulation for the rapidly growing gaming industry in India. SOGI aims to promote the sector's potential and local talent for growth in the fast-growing gaming industry.
According to Lumikai and Google's State of India Gaming Report FY23, the Indian gaming industry generated $3.1 billion in FY2024, which is projected to grow at a CAGR of 20 percent to reach $7.5 billion by FY 2028. Despite the rapid expansion, a SOGI study found that the online gaming segment in India contributes only 1 percent to global gaming revenues, compared to China's 25 percent and the US's 23 percent.
“Despite the immense potential in the Indian gaming industry, the 28 percent GST regulation has a significant impact on profitability, investment and innovation,” said Amrit Kiran Singh, Founder President of SOGI. It stifles the growth of the industry, leading to illegal offshore operators and missing out on opportunities for economic expansion and job creation. We must collaborate with the government for a balanced approach that supports growth and fair taxation.
SOGI's study shows that 78 percent of the time spent by Indian gamers is on foreign-backed platforms, allowing foreign companies to benefit from Indian usage. In Ahmedabad in particular, foreign-backed platforms dominate the market with over 90 percent share of total gameplay.
This dominance reflects missed opportunities for domestic innovation and cultural representation in gaming. SOGI advocates for supportive policies, financial incentives, and strategic investors to empower Indian start-ups and ensure equitable representation.
Due to the 28 percent GST on the full face value of online gaming, users are attracted to offshore and illegal gambling platforms. These companies, advertised as no-GST platforms, have seen a 35 percent increase in Indian users by October 2023. This illegal activity has increased by 57 percent annually, said Lieutenant General Vinod G, former Director General of the Defense Intelligence Agency. According to Khandare, India's national security is in grave danger.