Budget 2025: E-gaming can contribute ₹75,000 cr in GST over next 5 yrs, says EGF CEO

Despite regulatory and other challenges, India’s online gaming industry is set to grow 20% to ₹23,100 crore by FY25-end as gamers soar to 442 million, the second-largest user base globally after China. For FY26, its projected CAGR growth is estimated at 21% to $7 billion. The industry currently employs over 1 lakh skilled workers. However, the new-age industry is affected by 28% GST and issues such as the mushrooming of illegal gaming companies, which has dented its overall reputation. In the Union Budget 2025-26, the industry urges the government to focus on rational tax policies that could enhance the sector’s contribution to the economy while ensuring player protection and responsible gaming practices.

"In the Union Budget 2025-26, we urge the government to prioritise rational tax policies that could enhance the sector’s contribution to the economy, while ensuring player protection and responsible gaming practices. With the potential to contribute ₹75,000 crores in GST over the next five years, the online gaming industry is a crucial catalyst for economic advancement, aligning perfectly with the Prime Minister’s clarion call for a Viksit Bharat," says Anuraag Saxena, CEO, E-Gaming Federation (EGF).

He says Bharat's aspiration to become a trillion-dollar economy can only be achieved through exponential growth driven by emerging sectors with transformative potential. "India’s online gaming sector is a significant force for innovation by generating nearly 100,000 jobs, driving technological advancements, and positioning the country as a global hub for skill-based gaming. While the recent GST reforms have provided much-needed clarity, the retrospective tax demands have introduced uncertainty and have adversely impacted investor confidence, creating challenges for sustained growth of the sector."