A consortium of Indian video gaming and esports companies has written a letter to the newly formed government, requesting a comprehensive industry-focused policy, streamlined regulations and a clear distinction with real-money games that are often confused with video games under the umbrella term “Online Games”. Along with a clear classification, the country’s video gaming industry, represented by over 70 companies, has also made nine further suggestions to accelerate the growth of the gaming sector in India.
Indian video game industry writes to PMO
In a letter sent to the Prime Minister’s Office (PMO) and the Ministry of Information and Broadcasting (MIB) on Tuesday, Indian video game companies asked for a “comprehensive video games-focused policy in line with global best practices.” The companies also asked for government support for the growth of original Indian-made IPs and streamlining of laws and regulations to help bring a clear policy for video games in the country.
“The Indian video game industry has requested the newly formed Government of India to split the existing categorization of online games into two separate categories – video games and real money games, for a fair and equitable policy and to boost the growth of the Sunrise sector in a new representation letter to the Prime Minister’s Office and the Office of the Minister of Information and Broadcasting (MIB),” a press release from the companies said.
Harish Chengaiah, founder and CEO of Outlier Games, which also organised the consortium of Indian game developers, said the video game industry in India is expected to be worth $942 million (approximately Rs. 7,864 crore) by 2024, citing data from video game market research firm Niko Partners. The games sector in India is expected to reach $1.6 billion (approximately Rs. 13,357 crore) by 2029, surpassing the cumulative revenues of all Indian film industries and becoming the largest entertainment industry in the country.
The Outlier Games CEO also wanted to draw a clear line between video games – “purely entertainment-oriented digital games that do not involve an element of monetary wagering” – and real-money games.
“We urge the government to take a measured and nuanced approach towards video games as they definitely have the potential to boost India’s creative economy and soft power aspirations,” Chengaiah said.
Policy proposals for the Indian video game industry
In their letter to the PMO and the office of Information and Broadcasting Minister Ashwini Vaishnaw, the companies representing the video gaming industry in India also shared 10 suggestions as part of the national AVGC-XR policy for the government to accelerate the growth of the sector in the country. These include a demand for a clear distinction between video games and real money games for conducive policies and curbing misrepresentations in the media.
The companies also recommended that the I&B Ministry be appointed as the Nodal Agency for video games in the country. In addition, the stakeholders sought rationalization of import duties and easing of customs clearance process for crucial indigenous development hardware. The companies also suggested moving video games from 18 percent to 12 percent Goods and Services Tax (GST) rate.
The communication from India’s video game industry comes almost a year after industry stakeholders wrote a similar letter to the government over the tax on “online games,” calling for a distinction from real-money games.
Last year in July, the Goods and Services Tax (GST) Board imposed a 28 percent tax on online gaming, casinos and horse racing. The then Finance Minister Nirmala Sitharaman, who took over as the ministry last month, had announced the new tax policy.
