ACKNOWLEDGMENT

Embarking on the journey of crafting this report has been a

challenging yet rewarding experience, and it would be remiss
not to express my heartfelt appreciation to those who have
been instrumental in its fruition.
At the forefront, I extend my sincere gratitude to Prof.
Arbuda Sharma , whose unwavering guidance and
encouragement served as the compass navigating me
through the complexities of this project. Prof. Arbuda
Sharma's dedication and insights were invaluable, shaping
the trajectory of this endeavour.

I am profoundly thankful to Fore School Of Management, for

providing me with the platform and resources essential for
undertaking this endeavour. The opportunity extended by
Fore School Of Management has been pivotal in the
development and completion of this report.

The debt of gratitude also extends to my family, whose

unwavering support and encouragement have been my
pillars of strength. Their moral and, at times, economic
support have been a source of inspiration, spurring me on
during moments of challenge.
It is important to acknowledge that the list of those deserving
recognition is extensive, and any omission in this brief
acknowledgment is not indicative of a lack of gratitude. To all
those who contributed, whether directly or indirectly, I
extend my sincere appreciation for being an integral part of
this journey.
TABLE OF CONTENTS

The Indian Gaming Industry: A Report on Critical, Regulatory,

Environmental, Technological and Social Issues And Interventions
Needed

Table of Contents

Executive Summary

1. Introduction
2. Regulatory Issues

 Lack of Centralized Regulations

 Ambiguity Around Legality of Various Game Types
 Lack of Standardized KYC Norms
 Recommended Interventions

3. Environmental Concerns

 Energy Usage in Game Development and Play

 E-waste from Hardware and Devices
 Suggested Interventions

4. Social Issues

 Gaming Addiction
 Toxicity, Harassment, Lack of Inclusivity
 Interventions Needed

5. Infrastructure and Cultural Nuances

 Digital Divide in Internet Access

 Hardware Infrastructure Deficits
 Cultural Nuances in Game Preferences
 Addressing Challenges

6. Education and Skills Gap

 Absence of Gaming Programs in Mainstream Education

 Shortage of Specialized Skills
 Boosting Education and Skilling

7. Partnerships and Community Building

 Need for Partnerships with Global Players
 Scope for Building Local Communities
 Strategic Steps Ahead

8. Conclusion and Future Outlook

The Indian Gaming Industry: A Report on

Critical, Regulatory, Environmental,
Technological and Social Issues And
Interventions Needed
Executive Summary
The gaming industry in India is rapidly expanding, driven by
increased smartphone and internet penetration among the younger
demographic. However, there are several critical issues plaguing the
growth and integration of the Indian gaming sector with global
markets.

Key Findings:
- Regulatory uncertainties around gambling, betting laws, and the
lack of a standardized KYC process are hampering growth.
- Environmental concerns around energy usage and e-waste from
gaming devices and servers need addressing.

- Social issues like gaming addiction, lack of inclusivity, stereotypes,

and online harassment persist.

- Infrastructure limitations, lower disposable incomes, and cultural

nuances influence user behaviours and preferences.

- The absence of gaming curriculum in education and skills gap

impacts innovation and talent acquisition.

- Partnerships, community building, grassroots training, and policy

reforms are crucial interventions needed.

This report analyses the critical regulatory, environmental, social,

infrastructural, and cultural challenges. It provides data-driven
insights into the current Indian gaming landscape compared to global
markets. The report concludes with suggested interventions and
growth opportunities to help the Indian gaming industry gain parity
with international counterparts.

Introduction
The gaming industry in India has witnessed exponential growth in
recent years, driven by factors like increased smartphone and
internet penetration, tech innovations, investment inflows, and
strategic partnerships.

According to a Mordor Intelligence report, the Indian gaming market

was valued at $3.02 billion in 2023 and is projected to reach $6.26
billion by 2028, registering a CAGR of 15.68%.

However, there remain gaps that undermine the industry’s potential

for even faster growth and integration with the global gaming
market. This report aims to highlight the critical issues across
regulatory, environmental, social, infrastructural, educational, and
cultural spheres that currently inhibit the Indian gaming sector. It
provides data-driven insights into the disparities between the
domestic and global markets. The report concludes by suggesting
strategic interventions and future opportunities that can help
accelerate the growth of gaming in India and foster greater
convergence with international counterparts across all dimensions.

Regulatory Issues
The regulatory landscape for online gaming remains ambiguous,
creating impediments for growth and compliance. Some key issues
include:

Lack of Centralized Regulations:

- There is no uniform central law governing online gaming in India
currently. Regulation varies across states, creating confusion among
developers and players.

- Multiple overlapping legislations at the central and state levels

muddy the regulatory environment. Central laws like the IT Act and
state-specific gambling/betting laws apply, making compliance
difficult.

- Absence of standardized regulations also restricts foreign players

from entering and investing more in Indian markets due to higher
risks.

Ambiguity Around Legality of Various Game Types:

- There is lack of clarity on whether popular games like online
rummy, poker, and fantasy sports constitute gambling or are skills-
based games exempt from such laws.

- This ambiguity has led to arbitrary bans, legal disputes, and police
harassment of players, developers and gaming company executives
in some states.

- The Supreme Court distinguishes between games of skill and

chance. However, states apply this legal position differently based on
local gambling/betting laws.

Lack of Standardized KYC Norms:

- Varying KYC and age verification requirements across different
platforms and games create a fragmented ecosystem.

- Lack of standardized norms lead to poor compliance, account

frauds, money laundering risks, and hamper player onboarding.
- According to experts, over 4-5% player drop-off rates are attributed
to complex KYC processes especially with mandatory Aadhaar based
verification.

Recommended Interventions:
- Formulation of a uniform central regulatory framework for online
gaming after consultations with states.

- Clear definition of permitted game types and standardized norms

on KYC, age verification, account security and responsible gaming
across India.

- Single regulatory body to govern licensing, compliance, dispute

resolution and promote growth of the sector.

- Incentivize state governments to adopt common gaming

regulations through legislative reforms.

- Favourable tax structures and foreign investment policies to attract

more capital and boost innovation.
Environmental Concerns
While still at a nascent stage, environmental implications of the
gaming industry are beginning to emerge as issues warranting
attention.

Energy Usage in Game Development and Play

- Game development involves significant energy consumption,
including powering of studio equipment like computers, consoles,
servers etc.

- As per one estimate, an average gamer in the US consumes ~72 kg

of CO2 annually. With India's player base expected to cross 500
million by 2025, cumulative energy usage and emissions will be very
high.
- Cloud gaming services enabled by 5G networks allow instant access
to games without downloads, but also increase energy demands.

E-waste from Hardware and Devices

- Gaming hardware including consoles, accessories, and PCs/laptops
have relatively shorter replacement cycles, resulting in e-waste
generation.

- E-waste contains hazardous materials like lead, mercury, lithium,

cadmium etc. which need responsible disposal and recycling.

- India generated 3.2 million tonnes of e-waste in 2022, and remains

one of the biggest contributors globally. Gaming hardware adds
significantly to this.

Suggested Interventions:
- Gaming companies should disclose and commit to reducing carbon
footprints across their value chains. Net zero emissions targets with
robust plans can be adopted.

- Promote optimized gaming builds and eco-modes for consoles/PCs

to reduce energy demands. Create player awareness about their
energy usage.

- Adopt circular economy practices and responsible e-waste recycling

programs for used gaming hardware.

- Policy level support for renewable energy adoption, carbon taxes

and incentives for green gaming technology development.
Social Issues
Certain prevailing social issues concerning gaming need focused
redressal.

Gaming Addiction
- WHO has recognized 'gaming disorder' as a health condition
characterized by impaired control over gaming and escalating
priority given to it over other interests and activities.

- A survey revealed 8.4% of gamers in India displayed signs of gaming

addiction including anxiety, insomnia, stress etc. Youth are especially
vulnerable.

- Extreme cases have reported deaths of players after marathon

gaming binges as their health deteriorated. Addiction has raised
alarms for responsible gaming practices.
Toxicity, Harassment, Lack of Inclusivity
- Issues like racism, sexism, harassment, bullying and gatekeeping
affect gamers, especially women & marginalized groups. This creates
a hostile culture.

- Stereotypical representation of gender, race, ethnicities, abilities,

and LGBTQ identities also persist in games.

- Lack of accessibility features exclude populations with disabilities.

This inhibits a thriving, inclusive gaming community.
Interventions Needed:
- Incorporate mental wellness education and counselling services for
people displaying gaming addiction signs. Parents and schools also
need greater awareness.

- Gaming platforms must institute stronger community guidelines,

reporting tools, and repercussions against toxic player behaviours.

- Greater diversity in gaming teams and thoughtful identity

representation to make games and culture more inclusive.
Accessibility features in gameplay and hardware will further
inclusion.

- Government, industry and civil society collaboration is essential to

promote responsible gaming nationwide.

Infrastructure and Cultural Nuances

India's infrastructure limitations and unique cultural preferences
shape gaming behaviors which widen its divergence from global
gaming trends.

Digital Divide in Internet Access

- Only 56% of India's population has access to the internet. The
digital divide is stark between urban and rural areas.

- Low quality internet connections inhibit access to high data online

games for a large segment of population concentrated in non-urban
centres.

- As per a Deloitte report, India had 22 million 5G subscriptions in

2022. The number is expected to rise to 331 million by 2028,
expanding quality access.

Hardware Infrastructure Deficits

- High costs of gaming PCs, consoles, accessories limits adoption.
Import duties further inflate costs of international hardware brands.

- Average spending on gaming hardware is relatively low compared

to users in mature gaming markets. This reduces access to high
immersive games which require expensive hardware.

Cultural Nuances in Game Preferences

- Traditional board/card games hold cultural significance. This drives
preference for games like Ludo, Carrom, Teen Patti with a familiarity
factor.

- Inclination towards casual gaming is higher versus more console/PC

based immersive gaming elsewhere.
- Myths around adverse gaming effects also affect participation and
investment by families. But perceptions are slowly changing among
parents and elders.

Addressing Challenges:
- Government need to accelerate investments in digital
infrastructure even in rural areas and smaller cities.

- Developers should optimize games for lower spec devices and

connections. Vernacular gaming content can drive engagement.

- Hardware manufacturers should introduce entry-level and financing

options for PCs, consoles and accessories.

- Raising awareness about benefits and career opportunities to dispel

negative perceptions around gaming.

- Leveraging cultural legacy of traditional Indian games to make

content relatable but with a modern gaming twist.
Education and Skills Gap
The absence of gaming-focused courses in mainstream education
and lack of specialized skills constrain evolution of the gaming
ecosystem.

Absence of Gaming Programs in Mainstream Education

- India lacks gaming-specific programs at the school/college level due
to which students remain unaware of it as a promising career option.

- With rare exceptions, universities or technical institutes do not

offer dedicated gaming design or development courses. This results
in a talent shortage.

- Students and educator communities are often not tapped by

companies for community building and evangelizing gaming.

Shortage of Specialized Skills

- As an emerging sector, availability of animation, visual effects,
coding, metaverse and other specialized gaming skills lag behind
mature markets.

- The small pool of qualified local talent drives up costs and attrition
for gaming studios.

- Developing gaming courses internally for fresh hires involves

additional time and investment.

Boosting Education and Skilling:

- Introduction of gaming courses in mainstream education starting at
high school level. Courses on gaming technologies, design etc. can be
added to IT/computer science programs.
- Technology institutes and universities should offer targeted
undergraduate and post-graduate gaming programs.

- Gaming firms can collaborate with schools/colleges to conduct boot

camps, workshops, hackathons and tournaments to build talent
pipelines.

- Tax sops and funding incentives for educational institutes offering

gaming programs and skill development platforms conducting
relevant training.

- Attracting Indian diaspora talent back home through leadership

opportunities, competitive compensation etc.

Partnerships and Community Building

Forging partnerships and community building are pivotal for the
Indian gaming segment to integrate deeper with global ecosystems.

Need for Partnerships with Global Players

- Unlike other IT sectors, Indian gaming lacks partnerships and
mentorship of major international studios which hampers exposure
to global best practices.

- Cross-border partnerships are vital for transfer of expertise. They

also increase visibility of Indian games to foreign audiences by
leveraging publisher networks.

Scope for Building Local Communities

- India's gaming community ecosystem remains highly fragmented
compared to Western or East Asian markets.
- Few platforms exist which connect students, developers, studios, e-
sports players, investors etc. to collaborate, network and ideate
together.

- Nurturing local communities will boost enthusiasm and retention of

talent within the Indian gaming industry.

Strategic Steps Ahead:

- Indian gaming studios should actively seek publishing partnerships,
project funding and co-development opportunities with established
global studios.

- Part of funding raised should be allocated towards building gaming

community infrastructure like forums, meetups, annual conventions
etc.

- Incentivizing gaming professionals of Indian origin based abroad to

mentor and train domestic talent through remote or in-person
modules.

- Leverage university alumni networks and student gaming clubs for

community building and funnelling talent to the industry.

Conclusion and Future Outlook

In conclusion, the gaming industry holds immense potential for
growth in India due to rising digital penetration among youth and
greater mainstream acceptance of gaming as a viable career option.
While encouraging trends are emerging, persistent challenges
around regulation, infrastructure, environment, education and
inclusion need coherent action from policymakers and industry
leaders to realize India’s true gaming market potential.
With strategic interventions across these critical spheres, the Indian
gaming segment can overcome existing bottlenecks and cross the
$10 billion valuation mark within the next 5-7 years. It will also spur
creation of skilled jobs and indirectly boost technology investments
across digital infrastructure, education and entrepreneurship.

Most importantly, gaming can evolve into a transformative

mainstream industry inspiring the next generation of Indian
technologists, artists, designers and creators across the world. With
the right foundation, gaming in India is poised for a breakout
trajectory in line with the nation's digital transformation. There has
never been a more opportune time to unlock its vast latent capacity
and catapult India's gaming prowess to the world stage.

Reference:

https://www.investindia.gov.in/sector/media/gaming

https://www.mordorintelligence.com/industry-reports/india-
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https://www.alternativepayments.com/blog/alternative-
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https://qrius.com/what-are-the-greatest-social-issues-identified-
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