Authored by: Gagan Arora

India’s ‘Design in India, Design for World’ initiative aspires to establish the nation as a global hub for design and manufacturing. A pivotal contributor to this vision is the rapidly expanding gaming startup ecosystem, which not only showcases India’s creative talent but also makes significant economic contributions. This article delves into how gaming startups are invigorating this ambitious vision.

The Indian gaming industry has experienced remarkable growth in recent years. As of 2023, the country boasts over 442 million online gamers, positioning it as the second-largest gaming market globally, just behind China. Among these, approximately 90 to 100 million are dedicated and regular players. The online gaming segment has emerged as the fourth-largest sub-sector within India’s Media & Entertainment industry and is projected to reach INR 231 billion by 2025, growing at a compound annual growth rate (CAGR) of 20%.

Gaming Startups: Catalysts for Innovation and Design

Indian gaming startups are at the forefront of innovation, developing games that resonate globally while reflecting local narratives. By creating culturally rich content, these startups appeal to domestic audiences and capture international markets. This approach aligns seamlessly with the ‘Design in India, Design for World’ ethos, as games designed locally are gaining global recognition.

Economic Contributions and Employment Generation

The rapid expansion of the gaming sector has significant economic implications. The industry is currently valued at $1.8 billion and is expected to grow to $6-7 billion by 2025, with a staggering CAGR of 35-40%. Moreover, the industry is a substantial employment generator. As of 2023, it employs over 50,000 individuals directly, with projections to generate more than 250,000 jobs by 2025. This job creation spans various roles, including game development, design, marketing, and support services, contributing to the broader economic development of the country.

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Government Initiatives and Policy Support

Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme: Launched in 2019 with an outlay of ₹264.62 crore over five years, TIDE 2.0 extends financial and technical support to institutes of higher learning and premier R&D organizations engaged in supporting ICT startups using emerging technologies. To date, 51 TIDE 2.0 Incubation Centres have been supported and made operational.

Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH) Scheme: This scheme supports existing and upcoming accelerators to select and accelerate potential IT-based startups to scale and solve India’s technological challenges, thereby creating a positive social impact. The SAMRIDH scheme provides support to selected accelerators for extending services to startups, along with one-to-one matching funding support of up to ₹40 lakh. In the first cohort, 22 accelerators across 14 states and 12 cities were selected to support 175 startups.

Next Generation Incubation Scheme (NGIS): Approved to support the software product ecosystem and address a significant portion of the National Policy on Software Product (NPSP) 2019, NGIS aims to handhold 300 tech startups in Tier-2/3 cities over three years, with a total budget outlay of ₹95.03 crore. The scheme is proposed to be launched from 12 locations, including Agartala, Bhilai, Bhopal, Bhubaneswar, Dehradun, Guwahati, Jaipur, Lucknow & Prayagraj, Mohali/Chandigarh, Patna, and Vijayawada.

Domain-Specific Centres of Excellence (CoEs): The Ministry of Electronics and Information Technology (MeitY) has operationalized 42 CoEs in diverse areas of national interest to drive self-sufficiency and create capabilities in emerging technology areas. These CoEs act as enablers, aiding in making India an innovation hub through the democratization of innovation and realization of prototypes.

These initiatives are instrumental in creating a conducive environment for gaming startups to thrive and contribute to the ‘Design in India, Design for World’ vision.

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Challenges and the Road Ahead

Regulatory Frameworks: The absence of a uniform national policy across states leads to varying interpretations of games of skill versus chance, creating uncertainties for startups. Addressing these regulatory hurdles is crucial to sustain growth and encourage innovation.

Infrastructure Limitations: Disparities in internet connectivity between urban and rural areas pose challenges. Overcoming these barriers will require concerted efforts from both the government and private sectors to ensure inclusive growth.

Access to Funding: While government schemes provide initial support, scaling startups often require substantial funding. Facilitating access to venture capital and private investments is essential for the sustained growth of the gaming ecosystem.

Skilled Workforce: The rapid evolution of gaming technologies necessitates a continuous supply of skilled professionals. Investing in specialized education and training programs will be vital to meet industry demands.

India’s gaming startup ecosystem is a dynamic force propelling the ‘Design in India, Design for World’ vision. Through innovation, economic contributions, and cultural representation, gaming startups are redefining the entertainment landscape and positioning India as a global design hub. With continued support and strategic investments, the gaming industry is poised to play a pivotal role in India’s journey toward becoming a global leader in design and technology.

(The author is the Founder and CEO of Vertex Global Services and Trade Commissioner for the India-Africa Trade Council)

(This article is a guest publication and does not have journalistic/editorial involvement of Scope Magazine. Scope magazine will not be responsible in any way for the content of this article.)