In December 2022, the Indian government officially recognised e-sports in the country as a ‘multisport event’ under the Ministry of Youth Affairs and Sports.
With Indian DOTA 2 clinching Bronze at the first Commonwealth Esports Championship, e-sports in India is on a high. India will send teams to compete in five e-sports titles at the 2023 Hangzhou Asian Games.
Finance Minister Nirmala Sitharaman is set to present the Union Budget 2023-24 on February 1, 2023. From progressive policy structure to minimum taxation costs, here are the sector’s expectations from this year’s budget.
‘An e-sports vision for India’
The e-sports industry is growing at an impressive percentage and is only forecasted to grow more in the coming years, both in terms of viewership and revenue. In the Union Budget 2023, we hope that the government will introduce measures to support the next phase of growth in the e-sports sector. The sector eagerly awaits a progressive policy structure from the government as well as consider levying a lower tax slab than the existing 18pc. The sector aligns well with the government’s digital economy vision, and we expect the budget to lay out a specific plan for the growth of esports including setting up of a task force, plans for infrastructural development for e-sports, training programmes, youth awareness programmes and most importantly an e-sports vision for India, defining a future state where we want to be. We also need government impetus to invite more investments into the sector, through a mix of ease of business and financial incentives in the budget. With adequate support, the e-sports industry has the potential for overall economic growth, job creation and contribution to the government’s vision of a trillion-dollar digital economy by 2025.
– Animesh Agarwal, Founder & CEO, 8bit Creatives
‘Funding for R&D, reforms in tax incentives’
No one can deny the fact that the e-sports and gaming industry has turned out to be the fastest-growing sectors in recent times. From business elites to the Indian government, all are taking notice of the potential it holds for economic benefits. Adding to that, recognising e-sports as a sport has further added to its advantage.
It is tough to predict much, but it would help the e-sports sector if the government can allot a decent share of the budget for the industry. Indian e-sports still has a long way to go and needs attention on funding for research and development, it needs reforms in tax incentives for game developers and e-sports organisations. More training centres need to be built, we need professional trainers and exchange programmes which could be beneficial to strengthen their strategies and be prepared for international tournaments.
Additionally, governments may also consider regulations and policies to support the growth of the industry to minimise risks of fraud, protect the rights of gamers and promote fair competition.
– Richa Singh, Co-Founder and CEO of FanClash
‘Protect interests of this sunrise industry’
We hope the 2023 budget will take steps to not only empower the gaming industry but also offer an incentive for the e-sports ecosystem in the country. This would help bolster technological integration and investment in the infrastructure to create new possibilities for youngsters in the e-sports and video game sectors. As the gaming industry has been flourishing, we are hoping the government this time would take notice to offer some more support and protect the interests of this sunrise industry. We definitely depend a lot on direct investments and these investors play a crucial role. We hope they can suggest minimum taxation costs for this segment to attract more investors.
The multi-sport event tag adds value to the credibility of our new-age sports i.e. e-sports like any other mainstream sport played in our country and we hope the prize pool winnings of our e-sports athletes should be exempted from income tax just like any other sportsperson.
– Rohit N Jagasia, Founder and CEO of Revenant Esports.
‘Corporates should also start allocating budgets’
We are expecting a favourable move from our government during the Union Budget. E-sports in the Indian landscape is progressing. The multi-sport event tag adds value to the credibility of esports like any mainstream sport enjoyed in India attracting more companies to invest as stakeholders or advertisers. In my personal opinion, the budget needs to be increased and allocated extensively for the growth of e-sports and the training of athletes. We need to find ways Indian e-sports can be taken further to the global platform which is only possible with better infrastructure, financial aid, and the right environment to nurture these talents.
It would be a great advantage to the e-sports community if our government considers allocating an ‘E-sports Development Fund’ similar to countries like Malaysia, Korea etc. which would support Indian gaming studios to build e-sports video game titles based on Indian history/ethos. Our players need facilities/training centres, advanced gears, boot camps and coaching to be set, we need to provide the top coaches, and other facilities to ensure they get complete support and can perform their best. Not only the government but the corporates should also start allocating budgets for e-sports
– Vinod Tiwari, President, Esports Federation of India
‘Three major expectations from the 2023 Union Budget’
Firstly, there was a conversation a while ago about changing the GST slab from 18pc to 28pc for the online gaming segment. We genuinely hope this does not come into effect, since it would immensely affect our growing industry. We are currently on a gradually growing path of increasing in-app spending and purchases related to gaming. Making the slab 28pc would set us back to square one.
Secondly, gaming – be it mobile or PC – requires hardware (semiconductors, batteries, etc). We are hoping there are some import duty relaxations on these items, or there is a bigger focus on the ‘Make In India’ initiative for these items. Any of these two actions will cause a drop in hardware cost, which will increase hardware accessibility and upgradability for gamers.
Lastly, we are hoping for internet and broadband services to be made cheaper and more accessible. The greater majority of the Indian gaming audience is from Tier 2 and Tier 3 towns, and a slash in internet pricing would encourage more young adults to take up gaming.
– Rohit Agarwal, Founder & Director, Alpha Zegus
