India on Track for $1 Trillion Digital Economy by 2025-26

CIOTechOutlook Team | Tuesday, 17 December 2024, 02:27 IST

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India is set to reach a USD 1-trillion digital economy by 2025-26, potentially adding 18-23 percent to the national GDP, as stated in a report by the Observer Research Foundation (ORF). A major catalyst for this bold goal is the rapidly expanding online gaming industry, which is expected to produce significant cross-sector effects. 

The online gaming industry, with its potential for growth, is set to enhance India's target of a US$1-trillion digital economy by attracting foreign direct investment (FDI), increasing tax revenues, generating jobs, and fostering the growth of related sectors such as fintech, Web 3.0, augmented reality (AR), and cybersecurity.

India's gaming sector exhibits comparable trends, driving the need for processors, content, devices, and internet access while hastening technological advancement. This ripple effect aids various sectors including media, healthcare, manufacturing, and automotive.

A Finnish research, The Digital Games Industry and its Direct and Indirect Impact on the Economy, highlighted the gaming sector's role in driving innovations that extend into various other fields.

Gaming firms set the standard with swift development processes, unique organizational structures, and advanced technologies that are subsequently embraced by sectors such as real estate, IT, and energy.

A research paper on The Economic Effects of Video Game Technology Spillover highlighted that technologies from video games such as game engines, VR, AR, rendering software, and haptic feedback are currently utilized extensively across various industries. For example, industries such as healthcare utilize VR and AR for training medical professionals, whereas manufacturing incorporates rendering software to enhance workflows.

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