India’s sports technology industry is poised for substantial expansion in the next five years, projected to grow from ₹26,700 crore in FY24 to ₹49,500 crore by FY29, reflecting a compounded annual growth rate (CAGR) of 13%, according to a recent report by the Federation of Indian Fantasy Sports (FIFS) and Deloitte.
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India’s sports technology industry is set to witness significant growth over the next five years, expanding from Rs 26,700 crore in FY24 to Rs 49,500 crore by FY29 at a compounded annual growth rate (CAGR) of 13%, according to a recent report by the Federation of Indian Fantasy Sports (FIFS) and Deloitte. Despite facing challenges, particularly in the fantasy sports segment, the sector continues to evolve and diversify, driven by advancements in technology and increasing digital engagement among sports enthusiasts.
The report, titled ‘Beyond the Field: India’s Sports Tech Revolution’, outlines three key subsectors that define the sports technology ecosystem in India:
Among these, fantasy sports remains the dominant player, contributing Rs 9,100 crore in revenue in FY24. However, the report warns that this segment is on the brink of a downturn following amendments to goods and services tax (GST) laws, which have significantly increased the tax burden on companies operating in this space.
The fantasy sports industry, once a rapidly growing sector, is now expected to shrink by 10% in FY25, with its revised CAGR dropping to 7% from FY24 to FY29—far below the earlier projection of 30% for FY22 to FY27. The primary reason for this decline is a nearly 50% reduction in profit margins as companies absorb higher taxation costs.
Furthermore, the investment climate has been severely impacted. The report highlights that funding in the fantasy sports sector plummeted by 90% in 2023, with no new investments recorded in 2024. This sharp decline in investor confidence could have long-term implications for the industry’s ability to innovate and expand.
Speaking on this, FIFS Director-General Joy Bhattacharjya emphasized the need for a balanced approach to taxation and regulation. “For years, the fantasy sports industry has reflected the passion of sports fans. A viable tax regime, robust and progressive national-level regulatory framework, and industry-wide standards for responsible gaming will be key to unlocking its full potential,” he said.
Despite the hurdles, the sports technology industry is expected to generate 17,500 direct and indirect jobs by FY27, highlighting its importance in India’s broader economic landscape. Prashanth Rao, Partner at Deloitte India, pointed out that ensuring policy stability will be crucial in maintaining growth momentum and attracting further investment.
The report also notes that initiatives like the Draft National Sports Policy 2024 are positive steps toward fostering industry growth. However, it calls for additional measures, such as greater support for sports-tech startups, improved infrastructure, and regulatory clarity to ensure long-term sustainability.
While the fantasy sports industry faces short-term setbacks, the broader sports technology ecosystem in India remains poised for expansion. The increasing adoption of digital technologies, data analytics, and AI-driven innovations in sports management, training, and fan engagement is expected to drive new opportunities across the sector.
Moreover, foundational technologies like 5G, cloud computing, and IoT will continue to enhance the overall sports experience, making India a strong contender in the global sports-tech landscape. If regulatory challenges are addressed and investments in infrastructure and innovation are encouraged, India’s sports technology industry could emerge as a major growth engine in the coming years.
India’s sports technology sector is on a promising growth trajectory, with significant contributions from various subsectors. However, to fully realize its potential, it is essential to create a conducive business environment with stable policies, investor-friendly taxation, and a robust regulatory framework. By addressing these challenges and fostering innovation, India can position itself as a global leader in sports technology while creating employment and driving economic growth.
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