A group of Indian video game and esports companies has reached out to the newly established government, urging the implementation of a comprehensive policy tailored to the industry. The consortium seeks regulatory streamlining and a clear differentiation between traditional video games and real money games, which are often grouped together under the term “Online Games.” Representing over 70 companies, the gaming industry has also proposed nine additional recommendations aimed at fostering growth within the sector in India.
Indian Video Games Industry Appeals to PMO
In a letter dispatched to the Prime Minister’s Office (PMO) and the Ministry of Information and Broadcasting (MIB) on Tuesday, Indian video game companies called for a “comprehensive, video games-focused policy aligned with global best practices.” The request also included government assistance in cultivating original intellectual properties (IPs) and streamlining legislative and regulatory frameworks to create clear policies for video games in India.
According to a press release from the consortium, “The Indian Video Games Industry has urged the newly formed Indian government to redefine the existing classification of online games into two distinct categories — video games and real money games — to facilitate fair policymaking and promote growth in this emerging sector.”
Harish Chengaiah, founder and CEO of Outlier Games, who spearheaded the consortium, indicated that the Indian video games market is expected to reach a value of $942 million (approximately Rs. 7,864 crore) by 2024, based on insights from market research firm Niko Partners. By 2029, the sector is projected to grow to $1.6 billion (around Rs. 13,357 crore), surpassing the combined revenues of all Indian film industries and becoming the largest segment of the country’s entertainment industry.
Chengaiah emphasized the need for a clear distinction between video games — which focus solely on entertainment and lack monetary staking — and real money games.
“We urge the government to adopt a nuanced approach to video games as they hold significant potential to advance India’s creative economy and enhance its soft power aspirations,” he stated.
Policy Recommendations for the Video Games Sector
In its communication to the PMO and the office of Union Minister of Information and Broadcasting Ashwini Vaishnaw, the consortium presented ten recommendations designed to boost the video games industry as part of the national AVGC-XR policy. These suggestions include the need for a clear distinction between video games and real money gaming to support effective policymaking, alongside measures to mitigate misrepresentation in the media.
Additional proposals included designating the I&B Ministry as the Nodal Agency for video games, rationalizing import duties, and simplifying customs processes for essential development hardware. The stakeholders also advocated for reducing the Goods and Services Tax (GST) rate on video games from 18 percent to 12 percent.
This outreach from the Indian video games industry follows a similar letter sent to the government nearly one year ago concerning taxation on ‘Online Games’ with a plea to differentiate them from real money games.
In July of the previous year, the Goods and Services Tax (GST) council imposed a 28 percent tax on online gaming, casinos, and horse racing. At that time, then Finance Minister Nirmala Sitharaman announced the new taxation policy. She has since resumed her position in the ministry.
