Recently, in a historic move, the Government of India officially acknowledged eSports in the country. Esports, also known as electronic sports, will currently be a part of the “multisports event” classification in India under the Ministry of Youth Affairs and Sports. Expenditure on the Department of Sports under the Ministry of Youth Affairs and Sports has increased from Rs 657 crore in 2011–12 to around Rs 1,749 crore in 2021–22. As per budget estimation, this has gone up further to Rs 2,123 crore in 2022–2033.

Finance Minister Nirmala Sitharaman will present the Union Budget 2023–24 in Parliament on February 1, 2023. The following are statements from industry experts on expectations from the current year’s budget with respect to this rising sector.

Commenting on the pre-budget expectations for the industry, Mr. Roland Landers, CEO, of All India Gaming Federation, said, “AIGF is determined to implement the Hon’ble Prime Minister’s vision for the online gaming sector through the continued expansion and transformation of this industry in India.” We have seen a lot of progressive regulatory moves recently in the context of online gaming, which has all been very welcome. With the AVGC Task Force’s recommendations for a game development fund and the annual gaming expo, the recognition of the Ministry of Youth Affairs and Sports as the nodal ministry for eSports, and the draught IT Rules for gaming intermediaries, the gaming industry is well positioned to be a torch bearer for Brand India. Since the future of this industry is extremely positive, there is truly a lot for the gaming industry to look forward to. A well-clarified and progressive taxation regime would provide an immense boost to this sunrise sector. Such a move will make gaming a cornerstone of Digital India and be the catalyst for India to achieve its goal of a trillion-dollar digital economy.

Sharing the expectations on the pre-budget for the industry, Mr. Ankur Singh, CEO and Founder, of Witzeal Technologies, said, “The Ministry of Electronics and Information Technology (MeitY) recently published a draught of rules pertaining to online gaming for public consultation.” It is encouraging to have the government support India’s burgeoning and promising online gaming industry. We believe that government backing would provide the entire ecosystem with the much-needed boost it needs because the industry is creating opportunities for the start-up space, luring FDI, and boosting the national economy. The sector’s growth will be further boosted by strengthening the AVGC task force set up, which was established in the previous year’s budget. We also expect the government to take the taxation aspect into account in the upcoming union budget, which would provide Indian businesses with a competitive edge and encourage them to meet international standards.

A profusion of job prospects can then be further tapped by rewarding innovation when a government body or an SRO is in charge of overseeing the entire industry. In addition, we think that a robust digital infrastructure would facilitate the sector’s growth and adapt new technologies, creating opportunities for gaming studios in India. This will also support the government’s “Make in India” and “Digital India” initiatives. “The government’s goal of creating a $5 trillion US economy is something that the online gaming industry wants to support.” Mr. Singh went on to say more.

Everyone’s eyes are on the gaming and esports sectors in the Union Budget 2023. It will be fascinating to see what the government of India anticipates for the sector.

Credit: InsideSport