Union Budget 2024: India's Video Gaming & Esports Industry Optimistic With PM Narendra Modi's Advocacy and State Support

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New Delhi, Jul 12: Following the presentation of the interim budget in February, Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 of the Modi 3.0 government in the Lok Sabha on July 23. The Budget session, running from July 22 to August 12, has sparked optimism within the esports industry for the coming year.

Earlier this year, Prime Minister Narendra Modi engaged with Indian esports industry stakeholders to explore various facets of the industry and strategies for its growth. He later stressed establishing India's dominance in the global gaming market and highlighted the significant future potential of the industry and the opportunities it presents for Indian youth.

Indian states have also been actively supporting the sector's growth. Since its recognition as an official multi-sport event by the government, Bihar has organized the first Bihar State Esports Open Championship and issued a new tender invite for establishing a project monitoring unit to promote esports in the state over the next three years.

States like Uttar Pradesh signed a Memorandum of Understanding (MoU) with Garena, while Gujarat signed an MoU with KRAFTON Inc. to promote esports in their states.

The Maharashtra government rewarded the state's Asian Games 2022 participants with INR 10 lakhs each, alongside mainstream sports athletes, marking a significant moment for Indian esports recognition as a new-age sport. The potential creation of the Olympic Esports Games has further elevated its status as a modern sport alongside traditional sports.

Sharing his expectations for the upcoming Union Budget 2024, Akshat Rathee, Co-founder and MD of NODWIN Gaming, said, "Gaming and esports have different needs and demands in the budget. With esports now under national and international sports federations, esports would benefit from an increased investment in the sports budget and inclusion in national games such as Khelo India.

"Esports has the potential of winning India medals in international sports competitions. Gaming would benefit from the allocation of budgets for centres of excellence under the AVGC policy of India where game development and associated businesses can create jobs and increase India's soft power in content for the youth worldwide."

During the PM's interaction with the gamers, he specifically emphasized the growth of homegrown games, noting India's rich culture and history. One such upcoming game is Indus: Battle Royale, developed by SuperGaming and inspired by India's rich culture.

"The video gaming and esports industry holds high expectations for policies that will bolster economic growth and innovation in India. The gaming sector has seen exponential growth, driven by a young, tech-savvy population. We hope the upcoming budget will recognize this potential and introduce measures that support game development, infrastructure, and talent development.

"Tax incentives for developers, investment in infrastructure, and support for local studios can position India as a global gaming leader. The gaming community looks forward to a budget that acknowledges our contribution to the economy and supports our growth trajectory," commented Roby John, CEO and Co-Founder of SuperGaming.

Alongside policies for homegrown games, policies promoting made-in-India gaming products to be developed are also essential for the overall growth of the country's video gaming ecosystem.

"We hope to see policies that encourage domestic manufacturing of gaming hardware, provide incentives for local production, and reduce import duties on essential components. This would ensure that our gamers are equipped with advanced gear. The government can further fuel the gaming hardware industry by introducing subsidies for research and development in gaming technology and establishing special economic zones dedicated to the production of PC gaming equipment.

"We hope that the forthcoming budget will provide the necessary impetus to drive the gaming industry's growth further in India, as the gaming sector has been one of the fastest growing sectors in the past 5-7 years in our country," stated Vishal Parekh, Chief Operating Officer, CyberPowerPC India.

With over 450 million gamers and more than USD 830 million in revenue generated in 2023, India is the fastest-growing gaming market, according to Niko Partners. The nation is on the path to becoming a global powerhouse in gaming and esports, and the upcoming budget could be a key facilitator in driving the industry's remarkable growth and success.