Budget 2024: Gaming & esports want investment in growth, Make in India opportunities

As India gears up for the highly anticipated first Budget of the Modi 3.0 government, all eyes are on the potential financial blueprint that could reshape various sectors of the economy. This session is more than just a fiscal exercise; it’s a pivotal moment that could steer the nation towards technological prowess and digital excellence. With key decisions on infrastructure, innovation, and technology on the table, the anticipation is palpable. Stakeholders from diverse industries are keenly awaiting announcements that could drive growth, foster innovation, and elevate India’s standing on the global stage.

In recent years, the gaming industry in India has skyrocketed, riding the wave of a young, tech-savvy population and improved digital infrastructure. Gaming has evolved from a niche hobby to a mainstream phenomenon, captivating millions across the country. The rise of esports has added a new dimension, transforming competitive gaming into a viable and lucrative career path. This explosive growth is not only fueling entertainment but also driving economic contributions through game development, streaming, and professional tournaments. The sector's rapid expansion has highlighted its potential as a significant contributor to the economy, creating jobs, fostering creativity, and enhancing India's soft power globally.

The stakes are high for the gaming and esports industry as the budget session approaches. Earlier this year, Prime Minister Narendra Modi took a game-changing step by engaging with Indian esports industry leaders. In these discussions, he delved into strategies for growth and the untapped potential of this booming sector. Modi emphasized India's goal to dominate the global gaming arena, spotlighting the immense opportunities and bright future the industry holds for Indian youth. There’s a buzz of excitement and hope that the government will recognize the untapped potential of this dynamic sector.

Expectations are high for increased investment in esports, integration into national sporting events, and the creation of centers of excellence under the AVGC policy. Industry insiders also advocate for policies promoting domestic manufacturing of gaming hardware, incentives for local production, and reduced import duties, all aimed at equipping gamers with cutting-edge technology. These measures could ensure that India not only keeps pace with global advancements but also sets new benchmarks in gaming innovation and infrastructure.

As we delve deeper into the aspirations and expectations of industry leaders, it becomes clear that this budget could be a game-changer for the gaming and esports landscape. The following discussion will unpack the transformative possibilities that lie ahead, offering a glimpse into the future of India's burgeoning gaming industry. By examining the insights and hopes of key stakeholders, we can better understand the critical role this budget might play in shaping the trajectory of gaming and esports in India. Whether through direct investment, supportive policies, or infrastructural enhancements, the upcoming budget has the potential to catalyze a new era of growth and innovation for this vibrant sector.

Akshat Rathee, Co-founder and MD, NODWIN Gaming:

“Gaming and esports have different needs and demands in the budget. With esports now under national and international sports federations, esports would benefit from an increased investment in the sports budget and inclusion in national games such as Khelo India. Esports has the potential of winning India medals in international sports competitions. Gaming would benefit from the allocation of budgets for centers of excellence under the AVGC policy of India where game development and associated businesses can create jobs and increase India’s soft power in content for the youth worldwide.”

Vishal Parekh, Chief Operating Officer, CyberPowerPC India:

“As we approach the upcoming budget session, there is a tangible sense of anticipation within the tech and video gaming industries of the country. We are optimistic that the government will recognize the potential of this sunrise sector and support its growth. We hope to see policies that encourage domestic manufacturing of gaming hardware, provide incentives for local production, and reduce import duties on essential components. This would ensure that our gamers are equipped with advanced gear. The gaming and esports sectors hold immense potential for career opportunities for the youth, which in turn encourages more investments in digital infrastructure, such as faster internet connectivity and wider 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 fuel the gaming hardware industry by introducing subsidies for research and development in gaming technology and establishing special economic zones dedicated to the production of PC gaming equipment.

Additionally, we look forward to initiatives that promote skill development and foster innovation in the gaming sector, enabling India to become a global hub for gaming talent and technology. At CyberPowerPC India, we are committed to delivering cutting-edge gaming solutions. We hope that the forthcoming budget will provide the necessary impetus to drive the gaming industry's growth further in India, as the gaming sector has been one of the fastest growing sectors in the past 5-7 years in our country.”

Roby John, CEO and Co-Founder, SuperGaming:

“The video gaming and esports industry holds high expectations for policies that will bolster economic growth and innovation in India. The gaming sector has seen exponential growth, driven by a young, tech-savvy population. We hope the upcoming budget will recognize this potential and introduce measures that support game development, infrastructure, and talent development. Tax incentives for developers, investment in infrastructure, and support for local studios can position India as a global gaming leader. The gaming community looks forward to a budget that acknowledges our contribution to the economy and supports our growth trajectory.”

Rohit Agarwal, Founder & Director, Alpha Zegus:

“I believe in this budget session we will not be seeing any major updates about the video gaming & esports industry. We might, however, see updates regarding the regularization of the RMG segment and changes in policy structures/tax slabs for the same. The battle between the division of Esports & RMG is still prevailing and is being escalated to the highest authorities to bring judgment. For the same reason, we can expect some budget modifications towards this. I just hope that decisions regarding RMG don’t affect the esports industry.”

Anuj Tandon, CEO of Gaming, JetSynthesys:

“The Esports industry eagerly anticipates the upcoming budget to support the fast paced growth it is set for. With India becoming one of the fastest-growing markets in online gaming, with a 30% CAGR and 455 million gamers, an increased investment in AI, R&D, and educational partnerships can significantly enhance skills and drive innovation in the nation. We hope that the budget establishes a robust regulatory framework, clear guidelines, and supportive policies for player protection and foreign direct investment. Recognition of the IP-led nature of gaming and supporting the start-ups in the sector will further cement India’s position as a global gaming hub. The sector’s impressive growth in annual turnover underscores its resilience and the importance of a progressive budget to spark economic growth and position India as a leader in gaming and digital entertainment.”