Video games came to India decades ago—to the delight of children and despair of parents. Since then, it has consistently won fans across ages, thanks to evolving technologies.
By one count, 3 billion people across the world play or have played digital games. The size of the global gaming industry is estimated at about Rs 29 lakh core—bigger than the movie and music industries.
The Indian gaming industry, with a user base of around 450 million, was valued at Rs 33,000 crore in 2023. Surely, we have come a long way.
From the days when consoles and personal computers were the only gaming platforms, we can now get them instantly on mobile phones. This has proved to be the biggest boost to the industry. The demographics of gamers now includes adults of both genders. The sphere of influence has widened with better content, newer genres and impact on areas beyond entertainment.
Gaming has potential for productive use, as it promotes critical, strategic thinking and encourages problem solving. Sandbox gaming allows players to explore, build and modify the game environment, fostering creativity. Developers have introduced nuances like conflict resolution beyond combat and winner-takes-it-all scenarios.
Gaming is also being considered an art form, integrating storytelling, graphics and music. Unlike social media platforms, which have a built-in possibility of doom scrolling, gaming is interactive.
Gamers find themselves in an intrinsic learning loop. Players before a screen have heightened levels of attention and concentration, which could be harnessed to promote learning.
Taking part in a game as an avatar is a form of role play. It could be used to reinforce responsible behavioural patterns. Exposure to challenges facilitates agility in responses.
Features such as rules, goals, interaction, and feedback integrated into learning pedagogies have proved to be valuable in skilling. Games are being used to teach language, economics, and psychological research to observe stimulus response.
Among the ingenious uses games have been put to is checking the spread of disinformation. During the pandemic, a game called ‘Go Viral’ allowed players to debunk misleading information about Covid. As financial scams are increasing, a game that teaches people to scan scammers and remain unscathed would be hugely welcome.
The power of games is that they are immersive experiences that can evoke deep emotions and involve deeper engagement. What makes games stand out from other media is that they offer players the agency to influence outcomes through their choices.
Innovations in animation, artificial intelligence, virtual and augmented reality technologies are improving game design. Further use of blockchain and generative AI can enable other kinds of experiences.
The industry has immense potential for growth in India considering the demographics, high-speed internet, tech talent and digital fluency available. With strategic investment and regulatory support, it is projected to reach revenues of Rs 66,000 crore by 2028 and provide for 2 lakh jobs. The increased number of startups in gaming and e-sports is expected to be the drivers of this growth.
Along with funding, they would benefit from training of fresh talent and research facilities. The proposed national centre of excellence for animation, visual effects, gaming, comics and extended reality in Mumbai, approved by the central government, could play a pivotal role in leveraging Indian cultural heritage and generating patents. Creation of narratives that align with traditions of the country can help branding and be an effective statement of Indian soft power.
Real-money gaming is a significant component of the Indian industry. It offers a bouquet of formats on various online platforms. The earnings are subject to GST and income tax. However, regulators have flagged the potential for misuse of these platforms due to lack of customer details and use of bots.
There is also a risk of money laundering when cross-border jurisdictions are involved through the use of the dark web or virtual networks to evade tax laws and perpetrate cyber fraud. Effective enforcement is needed to ensure a level playing field and a transparent, secure environment for gamers. For now, a voluntary code of ethics has been curated by online gaming entities as a step towards self-regulation.
The danger of exposure to violence, particularly for young players, is present as games can stimulate aggression and recklessness in real life. Addiction to games has been classified as a mental health disorder by the WHO. This is where the role of content regulation and built-in safeguards by gaming platforms to restrict excessive user access comes in. Age-appropriate grading of games and parental monitoring are vital. There has also been a demand for a data protection law that will ensure mandatory parental consent for children under 18 to access gaming platforms.
A theory of simulation says the universe and its inhabitants are part of a gigantic video game, as seen in the movie The Matrix. Whatever the possibility of that, it’s undeniable that the evolving metaverse has engulfed us. It has diverse potential beyond mere entertainment and presents a valuable economic opportunity for India. So it makes sense not just to join the game, but to be on top of it.
Geetha Ravichandran
Former bureaucrat and author, most recently of The Spell of the Rain Tree