India mulls 100% FDI in online gaming

The Indian government is poised to introduce a policy overhaul for Foreign Direct Investment (FDI) in the online gaming sector. According to reports, the government is considering permitting up to 100% FDI in this rapidly growing industry. This move is seen as a major relief for the sector, which has been grappling with high taxes and regulatory hurdles.

The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed allowing full FDI in online real-money gaming, excluding betting and gambling activities. The government aims to streamline the FDI process and attract more foreign investment into the burgeoning online gaming market.

While 100% FDI in online gaming is technically permissible, existing regulatory ambiguities have created obstacles for businesses seeking banking and government approvals. The proposed policy change seeks to address these issues and provide much-needed clarity to investors.

This development is in line with the government's broader push to liberalize FDI across various sectors. The recent Union Budget also emphasized simplifying FDI rules and promoting foreign investments, including the use of the rupee in international transactions.