As the Modi government prepares to present its Union Budget on July 23, 2024, the Indian gaming and esports industry is eager for favorable policies and tax relief to boost its growth. Industry leaders are calling for measures that could transform India into a global gaming hub.
The sector’s main expectations include tax incentives, clear regulatory frameworks, and increased funding for esports. A group of 70 Indian gaming companies recently petitioned the Prime Minister’s Office and the Ministry of Information and Broadcasting to reduce GST on video games from 18% to 12%. They believe this would help game developers by enhancing sustainability and improving cash flow.
Rajan Navani, Chairman of the Indian Digital Gaming Society, emphasized the sector’s potential (from Times of India).
“India has a massive pool of talented gamers. To compete globally, we need support in the upcoming budget, including tax breaks for studios creating original content, investment in infrastructure, and initiatives to cultivate a skilled workforce,” he said.
Tax incentives for game developers are high on the wishlist. Roby John, CEO of SuperGaming, said, “We hope the budget will recognize this potential and introduce measures to support game development, infrastructure, and talent development.” He believes these initiatives could position India as a global leader in the gaming industry.
Another key expectation is the establishment of Special Economic Zones (SEZs) for gaming hardware manufacturing.
Industry stakeholders are also advocating for the recognition of Animation, Visual Effects, Gaming, and Comics (AVGC) intellectual property as bankable assets. Deepak Ail, CEO of Dot9 Games, called for “policies to help the Indian video game industry become a significant exporter and contribute to India’s goal of a 10-trillion-dollar economy by 2047.”
While some industry insiders caution against expecting sweeping changes, the gaming industry remains hopeful that the government will acknowledge its potential and introduce supportive measures. The sector sees itself not just as an entertainment industry, but as a significant contributor to India’s digital economy and global influence, capable of creating jobs and driving innovation in the coming years.
Disclaimer: The views and recommendations made above are those of individual analysts and not of Business Upturn itself.
