India's online gaming industry has the potential to generate Rs 29,000 crore by FY25 !

The online gaming segment in India is projected to grow at a CAGR of 21 per cent over FY 21-FY 25 to reach a size of Rs 29,000 crore, according to a study released by KPMG in India.In FY21, it was estimated at Rs 13,600 crore. Of the total size, online casual gaming sub-segment is the most significant one and stands at Rs 6,000 crore accounting for 44 per cent of the total online gaming revenues. Due to the coronavirus outbreak, millions of Indians turned to mobile gaming platforms in order to keep connected while isolated at home. Unsurprisingly, India's gaming sector has also witnessed remarkable development, leaving us to question if India might become the next huge online gaming industry. From 2016 to 2021, there are more than 140 digital gaming and sports firms in the nation. In 2016, there were just two million users, and now there are over 90 million. Online games operate either on the ‘rake fee’ model wherein the gaming platform charges a rake fee for facilitating games or ‘freemium’ models wherein the gameplay is free but additional features may require users to purchase specific items for a monetary price. A rational imposition of Goods and Services Tax (‘GST’) is therefore vital for sustaining this industry.