Former Secretary of the Government of India, Shankar Aggarwal, emphasized the need to regulate India’s online gaming industry to tap into its vast economic potential. At a Mumbai conclave, Aggarwal highlighted the country’s underutilization in the $200 billion global online gaming market and proposed measures to unleash India’s share of this lucrative industry.
The conclave “Modi’s Vision: Bharat- A $5 Trillion Economy” was organized by the Interactive Forum on Indian Economy (IFIE) on 30 January 2024 at 10 AM at Grand Hyatt Hotel, Santacruz, Mumbai. The conclave stressed the contribution of various sectors to PM Modi’s mission of a 5-trillion-dollar Indian economy.
The former IAS officer also underscored the imperative of establishing a regulatory framework to propel India’s online gaming market forward. He emphasized needing a “nimble” and “loosely coupled” regulatory body to avoid stifling direct government interference. Aggarwal expressed confidence that with proper regulation, India’s online gaming market could scale up to a staggering $50 billion, significantly boosting the country’s economy.
Speaking at the conclave, he said:
”India has the world’s sharpest IT minds, yet we only make about $1.5 Billion of the massive $ 200-billion online gaming industry. We can unleash the actual market of India’s online gaming market if we step forward towards establishing a regulatory regime.”
The online gaming segment in India has witnessed remarkable growth, boasting a substantial gaming community of 42.5 crore players, second only to China. From FY20 to FY23, the sector experienced a notable Compound Annual Growth Rate (CAGR) of 28%, reaching a market size of INR 16,428 crore in FY23. Estimates project the market to grow to INR 33,243 crore by FY28E.
SOG Federation established for Online Gaming Regulation
Mr. Aggarwal’s advocacy for regulation aligns with recent developments in the industry, including the establishment of the Skillhub Online Games Federation (SOG Federation). This federation, chaired by Aggarwal, aims to regulate the online skill gaming industry and capitalize on India’s immense potential in the multi-billion-dollar global market.
The establishment of the SOG Federation marks a significant step towards regulating India’s online gaming industry. With the former Govt. of India secretary at the helm, supported by esteemed board members including former government officials and legal luminaries, the federation is poised to steer the sector towards responsible growth and unlock India’s vast potential in the global gaming landscape.