The past two years have been very difficult for all in general. The new normal in a world where Covid-19, unfortunately, has become part of our life and will bring about many changes in the way businesses will be conducted, and more importantly the way we live our life. The Union Budget 2022 -23 is being keenly watched by many sectors. The 3rd & 4th quarters of 2021 did see the economy looking up, the third wave or Omnicron which hit us in mid-December was the dampener.
The pandemic also saw a surge in Esports, the industry saw many players enter the market. The sector is hoping for tax reliefs to upcoming gamers, opening up investment avenues and a level playing field.
Vishwalok Nath, Director, World Esports Cup, “We hope the 2022 budget will take steps to not only empower the gaming industry but also offer an incentive for the esports ecosystem in the country. This would help bolster technological integration and investment in the infrastructure to create new possibilities for youngsters in the esports and video game sectors. The government should also encourage and back homegrown game developers, tournament organizers, and esports companies with steps like relief on the taxation to promote industry growth”.
Lokesh Suji, Director, Esports Federation of India & Vice President of the Asian Esports Federation (AESF) “The year 2021, has been the inflection point for video games in India. As such, 2022 will usher higher inclination by brands into the gaming industry to target the young age group of gamers.
We are hoping the budget to be in favor of the video games industry, tax benefits should be given to the gaming cafes where aspiring gamers kick-start their career. Mostly the types of equipment that are used by our esports athletes are imported or otherwise have high duties, so a tax redemption will be a good step to take gaming to the next level. The prize pool winnings of our esports athletes should be exempted from Income tax just like any other sportsperson”.
Rajan Navani, VC & MD, JetSynthesys and President of Indian Digital Gaming Society (IDGS): “2021 was a make-or-break year across all industries when India Inc went into business recovery mode. Digital became a buzzword with multiple industries maximizing and leveraging its massive reach to stay ahead of the curve. While the pandemic extended a shot in the arm to tech-first and digitally-backed companies, there is still potential to grow the category further and for the digital economy to contribute 20% to the GDP from the current 8%. With the Union Budget coming up, we hope to see a stronger government focus on the gaming and digital transformation industry in the context of Atmanirbhar Bharat. India has the power to become a global gaming and e-sports hub creating huge employment opportunities. We expect the budget to further incentivize investments in digital technology, particularly in the startup and scale-up ecosystem of India, which has been one of the brightest sectors of last year. This would give the already growing space a much-needed turbocharge.
We would further like to see the government come up with ways on how more domestic capital can be invested in new-age sectors, therefore finding a way to normalize long-term capital gains tax for private equity of 20% and match it to the long-term capital gain for public markets which is currently at 10%.
We would like to see more investments pumped into the digital infrastructure, as digital has been one of the strongest areas coming out of the pandemic and needs to be further strengthened. Looking forward to the budget this year and hoping for the best.”
Sai Srinivas, Co-Founder, and CEO, Mobile Premier League (MPL): “The online skill gaming and esports industry has been one of the very few sectors that have not just weathered the pandemic-induced slowdown, but has witnessed exponential growth. The industry is bound to grow even further, opening up new career opportunities for both gamers and game developers, and helping take Made in India games to the world.
As we look ahead, we hope the Government of India will introduce measures to adequately support this next phase of growth. Online skill gaming companies, which have flourished amid phenomenal investor interest, are well-placed to create jobs in roles ranging from VFX designing to software development. The Budget should consider levying a lower tax slab than the existing 18% to aid this. With esports a medal event at the Asian Games, and continues to gain prominence, this will also help incentivize a greater number of professionals to get into esports and represent the country at global tournaments of this stature.
The industry will also benefit from a fund that can provide capital to talented developers and designers, putting India on the path to becoming the hub for game development globally. Access to infrastructure will be crucial in this regard. This can be achieved by establishing specialized AVGC Centres and Universities for talented designers, visual artists, and developers who may have the capabilities but not the resources to build world-class games. Lastly, we hope that this year will bring more clarity from a regulatory standpoint. Online skill gaming suffers from a lack of differentiation from prohibited categories and games of chance. A uniform policy will be welcome and provide much-needed stability to the sunrise sector”.
