The newly formed government is set to present its first budget on July 23, with the Indian gaming and esports industry hoping for increased funding for sports and inclusion of esports in Khelo India. The video game industry is hoping for tax incentives for developers and clearer classification of real money games and video games.
Finance Minister Nirmala Sitharaman presented the Union Budget 2023 which many in the online gaming industry found encouraging. Storyboard18 spoke to multiple stakeholders in the esports and gaming industry to understand their expectations for the upcoming Union Budget 2024.
Allocate budget to the Center of Excellence
Akshat Rathey, co-founder and MD, NODWIN Gaming, said, “Gaming and eSports have different needs and demands when it comes to budgets. eSports currently comes under the purview of national and international sports federations and will benefit from increased investment in sports budgets and participation in national games like Khelo India.”
Rathee further pointed out, “Esports has the potential to bring medals to India in international sporting competitions. Budgetary allocation for centres of excellence under India’s AVGC policy will benefit the gaming industry. Game development and related activities can create jobs and increase India’s soft power in youth content around the world.”
Rohit Agarwal, founder and director, Alpha Zegus, a next-gen marketing agency focused on gaming and lifestyle, opined, “I don’t think there will be any major updates regarding the video gaming and e-sports industry in this Budget session. However, we may see updates regarding regularisation of the RMG segment and changes in policy structure/tax rates on the same.”
He further said, “The tussle between e-sports and RMG division is still on and a call is pending with the highest authority. Hence, a revision in the budget is expected. Hopefully, the decision regarding RMG will not have an adverse impact on the e-sports industry.”
Recently, a coalition of 70 Indian gaming companies wrote to the Prime Minister’s Office and the Ministry of Industry and Commerce, proposing a reduction in GST on video games to 12% to help gaming companies achieve sustainability and improve cash flow, as well as exemptions from import duty, IGST, and levies on unique hardware development kits used in testing and development of video games.
Robbie John, CEO and Co-founder, SuperGaming, said, “The video gaming and esports industry is excited about policies that will drive economic growth and innovation in India. The gaming sector is experiencing rapid growth, driven by a younger, tech-savvy generation. We hope the next Budget recognises this potential and introduces measures that support games development, infrastructure and talent development.”
He added, “Tax incentives for developers, investments in infrastructure, and support for local studios will help India position itself as a global gaming leader. The gaming industry looks forward to a Budget that recognizes its contribution to the Indian economy and supports its growth trajectory.”
Shalin Shodhan, CEO and founder, Masala Games, creators of the upcoming Indian mystery adventure Detective Dotson for PC and Xbox Series X and S, said, “Video games are the intersection of art, commerce and technology. They should be treated differently from other forms of entertainment. We hope that the government will consider supporting video game development by adding it to education curricula and skill development initiatives. This will allow India to shine on the global stage as a net contributor to games development, rather than just a consumer market.”
Urging banks to consider AVGC-XR IP as an asset
Deepak Ail, CEO and co-founder, Dot9 Games, makers of mobile shooter FAU-G: Domination, foresees multiple policies on fiscal incentives, taxes, Game Developer Fund, as well as encouraging banks to classify AVGC-XR IP as an asset, saying, “We are seeing a fundamental shift in the industry with more Made in India video games than ever before, which will make original IP video game production the norm. The Indian government can harness the industry’s potential with the right policies and play a key role in helping the Indian video games industry emerge as a significant exporter and contribute to the national goal of achieving a $10 trillion economy by 2047.”
Establishment of SEZs for manufacturing industries
Vishal Parekh, chief operating officer of CyberPower India, expects the government to step up investments in building digital infrastructure and setting up special economic zones dedicated to manufacturing PCs and gaming equipment.
Parekh said, “The gaming and e-sports sector holds great potential career opportunities for young people, which will encourage further investments in digital infrastructure such as faster internet connections and increased broadband penetration. This will be crucial in ensuring that gamers across the country have access to seamless and immersive gaming experiences. The government can further boost the gaming hardware industry by introducing subsidies for research and development of gaming technology.”
