Internet Penetration and the Growth of the Gaming Industry in India

Internet Penetration and the Growth of the Gaming Industry in India


The Indian gaming industry recorded growth of 16% in 2012 and is predicted to grow at a whopping CAGR of 22% to reach at Rs 42 billion ($776million) by 2017. This was what the FICCI-KPMG Indian Media and Entertainment Industry Report 2013 had to say. The gaming industry is very diverse, with enthusiasts choosing from a variety of modes such as console, internet and mobile devices, to play their favorite games. For example, most of the rummy players in India, play rummy games online at

Large as well as small players are vying to enter the Indian gaming market, while Indian game developers seem to be mushrooming even as we speak. A close look at the trends shows the impact of the internet on this industry. Internet penetration in India is near 11% and it is safe to assume that most mobile and internet game users are part of this “connected” group.

Effects of the Internet on the Indian Gaming Industry

Here’s a look at how the penetration of the Internet across India has influenced the gaming industry in the country and why it will further impact the growth of gaming:

  1. E-commerce sites have made games more accessible to hardcore gamers. Online stores provide the convenience of instant downloads or shipping, with immense user friendliness. In addition, a wide array of gaming related devices are available under one roof online, helping decrease the ‘distance’ between gamers and their games.
  2. Increased smart phone and tablet usage has brought with a rise in the use of the internet and further propelled the mobile gaming industry. The facility to play games during boring commutes, or for that matter whenever and wherever one needs to pass some time, has led to an increase in gamers in India. And with gaming corporations shifting their focus to manufacturing tablet or mobile specific content, the users experience a different level of gaming,especially designed to cater them.
  3. Outsourcing by large foreign enterprises has benefitted the Indian gaming industry with new sources of employment and careers. India is currently witnessing large demand for game developers and everything points to a further swelling in this demand. This will help small Indian game publishers in procuring resources, which in turn would further increase their contribution to the gaming industry.

These factors and market predictions point towards a healthy increase in the gaming industry, no small part of which would be Internet based. Even consoles these days are exploiting the large consumer base in India with online communities where users can freely interact through downloads and videos,and participate in multiplayer games.

The bottom line, the Internet has enriched the gaming experience and will continue to do so for a long time to come.

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