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Finance Minister Nirmala Sitharaman has announced significant revisions to the capital gains taxation structure. The Union Budget 2024 has received positive feedback from stakeholders in the gaming and esports industries. Measures like as the elimination of the Angel Tax and reduced capital gains tax for startups have been welcomed.

Rajan Navani, President of the Indian Digital Gaming Society backed by CII and the Vice Chairman & MD of Jetline Group of Companies and the founder and CEO of JetSynthesys states, "The reduction in tax on long-term capital gains from the sale of shares of startups and unlisted entities by 8-9% to 12.5% is another significant advancement. Bringing this rate on par with listed shares achieves long-awaited parity and will massively increase domestic capital investment through family offices and venture funds in startups and new-age businesses."

He points out the allocation of Rs 2 lakh crore, including Rs 1.48 lakh crore for education and skilling, highlighting the government's commitment to preparing our youth for the future. The new centrally sponsored skilling scheme, in collaboration with state governments and industries, is a significant advancement. By designing courses with industry input, the government ensures that our youth will emerge as seasoned professionals, ready for a rapidly evolving job market. This continuous upskilling approach aligns with the principle of a lifetime of careers, empowering individuals to adapt to technological advancements and industry shifts.

While addressing the impact of union budget on the gaming and esports industry, he says that the industry has long advocated for youth upskilling, and it is encouraging to see the government align with this vision. A tech-savvy, skilled workforce is vital for these sectors, and the increased investment in education and skilling will undoubtedly equip young talent to excel.

Akshat Rathee, Co-founder and MD of NODWIN Gaming says, "We’re happy to hear the Hon'ble Finance Minister’s announcement to rollback the Angel tax for all investors in today’s Union Budget. This move will create a vibrant environment for startups across the nation and is a major boost for Indian gaming and esports entrepreneurs, leading to more opportunities as well as higher engagement with the youth. The plan to simplify FDI rules and promote the use of the Indian Rupee for overseas investment is a promising approach that will encourage global entertainment giants to invest in India, further strengthening our position as a global cultural and entertainment destination."

According to him, focusing on enhancing sports infrastructure in Bihar is a positive step since the state has already shown its commitment to integrating esports into mainstream sports. This additional government support will help nurture young talent and promote esports as a new-age sport nationwide.

"Additionally, reducing the BCD on mobile phones, chargers, and PCDA will make smartphones more affordable, which is fantastic for mobile gaming enthusiasts. This will boost mobile gaming adoption within the nation and further strengthen India's position in the global mobile gaming market, bringing us closer to becoming the largest. Overall,  we’re excited to dive into these opportunities to drive growth and make waves," he states. 

Roby John, CEO and Co-Founder of SuperGaming shared his opinion on the reduction in customs duty on mobile phones and the removal of the Angel Tax. He says, "Today's Union Budget, presented by Finance Minister Nirmala Sitharaman, offers multiple benefits to the country’s video gaming ecosystem. The reduction in basic custom duty on mobile phones is a move that will make smartphones more affordable, which is excellent news for India's extensive mobile gaming community."

"For our upcoming game, Indus, and other games in the market, this means reaching a broader audience and accelerating growth in the mobile gaming sector," and adds, Additionally, the removal of the Angel tax is a major boost for the entire startup ecosystem. This will give relief to more gaming and esports entrepreneurs who want to bring their innovative ideas to life, thereby strengthening the gaming and esports ecosystem in India. Overall, we are confident that these measures will propel India's tech and video gaming industry, bringing India’s gaming culture forward,” he empahsizes.

Addressing the budget, Dr Aruna Sharma, Policy Advisor, Practitioner Development Economist and Former Secretary to GoI proposes alternatives such as merging apprenticeships with MSMEs and using online games to engage skill development. She says, "The Economic Survey released on 22nd July highlights the urgent need for right skilling, revealing that 50% of the youth are not employable due to inadequate skills. As an outcome, like this year, skilling has been a focus area for the government in the past many years."

She further adds, "However, despite a decade of investment in skilling, the allocated budgets have not delivered the desired results. Attaching a couple of apprentices to MSMEs might prove to be essential. Furthermore, online gaming could be an effective tool for skill development through engaging methods. We need trained individuals who are focused, dedicated, and hardworking."



Union Budget 2024: Major tax revisions set to boost gaming and esports sector

The Union Budget 2024 allocated Rs 4,342 crore to the Ministry of Information and Broadcasting (MIB), with Rs 1,089 crore designated for information and publicity. Under social services, a capital outlay of Rs 38 crore has also been allocated for information and publicity. Compared to last year, there is no significant difference in the advertising and publicity budget for this fiscal year.

According to the budget expenditure report for 2024-2025, the government has allocated Rs 36.93 crore for Art and Culture and Rs 2,959.94 crore for Broadcasting. Furthermore, the government has allocated Rs 23 crore to the National Film Development Corporation. The budget for Prasar Bharati stands at Rs 2,509.94 crore this fiscal year, compared to Rs 2,644.02 crore last year. The government has allocated Rs 409.90 crore for the establishment expenditure of the Center for information and publicity.

Funds for the Broadcasting Infrastructure Network Development are implemented through Prasar Bharati. The scheme aims at the digitalization and FMization of the AIR Network, upgrading the capacity of the DTH platform to accommodate more channels, and enhancing the viewer experience.

In FY23, Rs 1,078 crore was allocated for information and publicity, while in FY22, Rs 1,001 crore was allocated. However, the current allocation of funds does not show a significant difference in the government’s ad spending.

A senior media analyst said, “TV gets the major chunk of the ad spends from the government’s publicity budget. With a few months left for the completion of the fiscal year and very little spent on advertisement during the first half, the government will utilize the funds in the upcoming months, boosting the AdEx.”


Union Budget 2024: Government to spend Rs 1,089 crore for information and publicity

In a move to encourage more startup investments in the country, Finance Minister Nirmala Sitharaman announced on July 23 that the angel tax will be abolished for all classes of investors in the Budget 2024. Additionally, the Union government will establish a Rs 1,000 crore venture capital fund to boost space startups. The minister mentioned that the Indian space economy will expand fivefold over the next decade but did not elaborate on which entity would set up the fund or how the funds would be invested.

"The announcement of the removal of the Angel Tax for all classes of investors is a huge reform. This is essential for startups to remain in India and grow from here. This is a major step forward for Indian startups and a watershed moment in the Indian startup story," said Siddarth Pai, Managing Partner, 3One4 Capital.

"A tax on capital is antithetical to capital formation and has long been used to harass startups and investors. Given the mandatory dematting of securities, Section 68, and the disclosure of unlisted investments in tax returns, the transparency gap that the Angel Tax was created to address has been plugged. It took 12 years, but the startup industry can now heave a sigh of relief that the dreaded angel tax has been removed," he added.

Manoj Agarwal, Managing Partner of Seafund, said, "As a deep tech-focused VC fund, the Finance Minister's announcement of a Rs 1000 crore space economy VC fund and an R&D fund of Rs 1 lakh crore will act as a strong catalyst for startups in deep tech and space tech. This Budget has addressed several longstanding demands of the industry. Rationalizing LTCG to 12.5% for all financial and non-financial assets is also a step towards bringing parity between listed and unlisted companies."

Agarwal further stated, "However, the biggest takeaway from the Budget is the removal of the angel tax. This will ease the process of raising funds for early-stage founders and will encourage more early-stage investors and angels to consider startup investing as a fruitful asset class. In our view, this single announcement is a small step towards making angel investment accessible for people with investment capital that currently goes to markets and mutual funds."

Anil Joshi, Managing Partner, Unicorn India Ventures, “The 1000 Cr fund of funds for space tech is testimonial to India’s capability in coming up with breakthrough solutions at low cost. This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilise over Rs 4000 Cr, great move.” 

Joshit said, “Angel Tax abolishment was long pending, glad that Hon. FM has heard industry voices and has finally abolished it. This will certainly help in expansion of angel investment in India and will take away a lot of burden from the minds of everyone on tax notice for tax paid investment. This will also free up a lot of domestic capital and improve the funding sentiment in a strong way.” 

Last year, a change in the angel tax provision introduced in the Union Budget raised concerns about startup investments in the country by foreign investors. This was because an exemption for money raised from foreign investors under the so-called angel tax regime was removed in the Finance Bill, 2023.


Finance Minister abolishes angel tax to boost startup investments

The travel industry has suggested a slew of initiatives for Union Finance Minister Nirmala Sitharaman ahead of the upcoming Budget 2024 that will be presented in the Parliament on 23 July, Tuesday.


According to the World Travel & Tourism Council (WTC), the industry will be contributing around Rs 21.15 trillion to India’s GDP in 2024, a marked 21% above 2019 levels. 

Besides, the WTC has also predicted an increase in employment in the travel and tourism industry by 2.45 million this year.

Madhavan Menon, Executive Chairman at Thomas Cook (India) Ltd has recommended slashing the income tax levels that will boost travel and tourism spending. Besides, Menon said that LTA (Leave Travel Allowance) exemption should be implemented annually as against twice in four years to catalyse domestic tourism.

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Menon also suggested that the setting up of new airports via private participation should be prioritised by the Centre. There should also be a rapid expansion in rail, road, and waterways (sea and river cruises), he added. 


As per industry data, air travel in the country has surpassed pre-COVID levels as compared to the USA, Canada, and Australia where the passenger traffic has just reached or is still below pre-COVID levels. From January to May 2024, domestic airlines carried 661.42 lakh passengers, marking a 4% YoY growth. Rail passenger volumes have also increased. According to a recent F&S report, buses remain the most preferred mode of travel, accounting for 70% of all transportation in India as of March 2023.

Aloke Bajpai, Chairman, Managing Director & Group CEO, ixigo has expected that the Modi government will continue to allocate resources for the development of infrastructure, technology, and safety measures at existing and new airports in tier 2,3 and 4 cities to cater to the growing demand. 

Bajpai also emphasized the need to simplify visa requirements for tourists visiting India to boost foreign arrivals. 

"We look forward to budget measures that support growth, innovation, and sustainability in the travel and hospitality sector, enhancing India's status as a top travel destination," the ixigo chairman added.

Kanika Tekriwal, Founder & CEO at JetSetGo is hopeful that Tuesday's budget will introduce more policies that will empower women, especially in aviation to excel on the global stage.

"By investing in industry-designed training programs, we can help organizations quickly absorb these women into their workforce and also inspire and equip young women to pursue careers in aviation. It's time to break down barriers and open up new horizons for women across India," Tekriwal said.

Budget expectation 2024: Tourism industry demands 'reduction in income tax levels, simplifying visa process'

Just a day before the Union Budget 2024 of the Modi 3.0 government, several experts suggested Finance Minister Nirmala Sitharaman to keep the focus on a robust job market by incentivizing industries that have high employment potential. Besides, policies that would incentivize upskilling and vocational training are also need of the hour.

"The key to building a stronger economy for us will lie in enhancing government spending on education and bringing in more structured public-private partnerships in primary and secondary education," Anandorup Ghose, Partner, CHRO Programme Leader, Deloitte India said.

Sekhar Garisa, CEO of talent platform foundit told Storyboard18 that Budget 2024 should include policies that will drive innovation and attract foreign investments as such measures will result in job creation in emerging sectors like green collar jobs, IoT-enabled manufacturing, and travel and tourism. Garisa said that these industries have the potential to create niche job roles, helping in fostering talent development.

"At foundit, we have noted a significant 13% growth in demand for green jobs since last year, underscoring the expanding opportunities in sustainable sectors," Garisa said.

Lohit Bhatia, President of Workforce Management, Quess Corp said that the most critical thing in India's job creation is creating faster formal employment. Bhatia has suggested that the employment generation industry can be brought down in GST from 18% to 5% and considered as "merit services". 

"Domestic workers which are estimated to be 50 million (of which 85% are women) can be supported with social security under the social security code approved as part of the labour code, individuals should contribute an additional 5% towards the social security and income tax benefits can be given to such individuals for the formal employment creation. Together this focus on women, domestic workers, MSME workers, and reduction in GST for the employment industry can greatly benefit the economy by transitioning more individuals from informal to formal jobs," Bhatia said.

Himansh Verma, CEO of Navrattan Group said that the support for manufacturing, agriculture, and services can drive job creation. He added "Supporting startups and small businesses through tax breaks and easier access to capital can significantly boost job creation. Investing in infrastructure projects can lead to immediate job opportunities and long-term economic benefits.".

Mamta Shekhawat, Founder of Gradding.com pointed out that in the era of the digital economy, there should be, "more skilled employees in regions such as IT, statistics analytics, and online advertising and marketing".

Hariom Seth, Founder of Tagglabs has suggested increased budgetary allocations for, "virtual infrastructure development, upskilling applications, studies and development in emerging technology like AI, IoT, and cybersecurity". Moreover, tax incentives or subsidies for technology startups and agencies ought to, in addition, improve employment possibilities inside the sector, Seth added.

Budget 2024: Experts push for job creation by allocating funds for education, upskilling, PPP model

Indian industry leaders are eagerly awaiting the upcoming budget, with a diverse set of priorities and wishlist. Companies like IKEA are looking for a skilled and sustainability-focused workforce, while Meesho wants more government support for startups. Bajaj Electricals hopes for increased consumer spending power, and Haier Appliances prioritizes infrastructure and manufacturing development. 

UpGrad calls for educational reforms, improved skills training, and a flourishing startup environment. Even the informal waste management sector seeks modernization through strategic resource allocation.

With expectations encompassing tax relief, electric vehicle industry boosts, and more, this budget holds the power to significantly influence India's economic trajectory. 

IKEA

Susanne Pulverer, CEO and CSO of Ikea India says, "At IKEA India, we are optimistic about the upcoming budget's potential to prioritize key areas that will drive quality and innovation in the industry. We look forward to the continued rapid expansion of infrastructure, particularly digital infrastructure, across the country. Additionally, we aim to deepen the Make in India initiative to help us cater to both domestic and export markets, and advocate for provisions that promote sustainable practices, including incentives for eco-friendly materials and green manufacturing. Investments in vocational training are essential to equip our workforce with contemporary skills. Lastly, initiatives aimed at increasing consumer income will definitely boost purchasing power and stimulate demand.”

Bajaj Electricals

Bajaj Electricals CEO Anuj Poddar calls for a budget that prioritizes boosting domestic spending power, especially for the middle class and rural citizens.

“Boosting domestic consumption should be a strong theme of the upcoming Budget. Over the recent years, we have seen a lot of focus on capex outlays and infrastructure sectors. It is now time for the Budget to also provide momentum to mass consumption – by providing more spending power to rural and middle-class citizens. There are many levers to do this, without affecting our fiscal balance which is very healthy at present. Our categories (FMEG) are highly dependent on the consumer demand environment and will gain from budgetary measures that boost middle-class and rural demand.” states Poddar.

Haier

NS Satish, President of Haier Appliances India, emphasizes the consumer durables industry's desire for a budget that prioritizes infrastructure, manufacturing incentives, and digitalization. He argues these measures will create a robust market environment, benefiting both domestic appliance makers and India's overall economic growth.

“As the Union Budget approaches, the consumer durables industry is optimistic about increased infrastructure spending and the extension of PLI schemes to boost economic growth. The durables segment is currently under-penetrated, presenting a significant opportunity for demand generation. The industry is also hopeful that the government's emphasis on 'Make in India' and 'Digital India' initiatives will align with the growing consumer preference for locally manufactured products. Such focus will not only enhance global competitiveness for Indian players but also significantly boost employment," he says and adds, "At Haier India, we look forward to a budget that creates a stable and growth-oriented environment, facilitating ease of doing business and driving economic activity and demand generation. These measures will provide the much-needed impetus for sustained growth in the consumer durables sector.”

Meesho

Meesho's CFO, Dhiresh Bansal urges the government to amplify its support for startups. He emphasizes that these measures are crucial to propel India's technological growth and reach its $5 trillion dollar economic goal.

"Meesho remains optimistic about the government's commitment to fortifying India's growing startup ecosystem. Acknowledging the pivotal role startups play in steering India towards a 5 trillion-dollar economy, we recognize the need for sustained government support. India's technological contribution to GDP is growing but remains in its early stages compared to other nations. The government's involvement in encouraging venture capital and angel investment is commendable, and we believe that further emphasis on these initiatives will gradually elevate the number of startups in India," states Bansal.

"To foster continuous expansion, we advocate for an all-encompassing strategy. Moreover, simplifying the processes associated with tax compliance and lowering tax rates, especially during the initial operational years, will ease the financial strain on startups, cultivating a more advantageous business environment. Lastly, with regard to talent attraction, a reduction in taxes related to Employee Stock Ownership Plans (ESOPs), presently standing at around 40%, will heighten the attractiveness of startups to skilled professionals, thereby contributing to the development of our vibrant ecosystem. This multifaceted approach aims to establish a conducive environment for startups, nurturing innovation, job generation, and sustainable economic.”, he adds.

upGrad

Mayank Kumar, co-founder of upGrad expects a substantial increase in funding for K-12 education, aligned with NEP recommendations, to revolutionize the quality and accessibility of education for every child, fostering a generation of future-ready learners. He also wishes for a boost in skill development programs through robust public-private partnerships, with a special focus on empowering government employees with cutting-edge emerging technologies. The budget should also prioritize initiatives to encourage and increase women's participation in STEM fields, creating a more diverse and inclusive workforce.

Kumar highlights the importance of making upskilling a "national habit" According to him, implementation of attractive tax benefits and incentives, akin to Section 80C deductions will help to make upskilling and lifelong learning an integral part of Indian culture. This will not only address the existing talent gap but also foster a culture of continuous learning and adaptation in the face of rapid technological advancements.

Kumar also expects a comprehensive overhaul of the ESOP taxation regime, aligning it with the treatment of shares, to unlock the full potential of ESOPs as powerful tools for attracting, retaining, and motivating talent in the thriving Indian start-up ecosystem. He believes this move will further propel the start-up revolution and contribute significantly to India's GDP.

 Kenvue

Manish Anandani, Managing Director of Kenvue India and South Asia wishes the budget should prioritize boosting disposable income through tax breaks. This would put more money in people's pockets, allowing them to buy more FMCG products, ultimately driving consumption and economic growth.

“The Union Budget 2024-25 should prioritize stimulating domestic demand by boosting disposable income through tax breaks. This will enhance their purchasing power, drive consumption and economic growth. The budget should also focus on enhancing infrastructure especially in the rural areas to ensure that essential health and everyday care products reach more households across India. Additionally, one needs to drive job creation in both rural and urban areas to build a robust economy. Together, these steps will revitalize the FMCG sector, promoting sustainable growth and resilience,” he states.

Schneider Electric 

Rajat Abbi, Vice President, global marketing, greater India and Chief Marketing Officer of Schneider Electric India says, "As we look ahead to the upcoming budget, our expectations are firmly rooted in the government’s commitment to sustainability and energy efficiency. We believe that the government is and will play a pivotal role in encouraging companies to adopt and drive forward sustainability initiatives. Providing incentives for businesses that invest in energy-efficient technologies and sustainable practices will accelerate the transition to a greener economy but also help the country achieve its goal of becoming net-zero by 2070. At Schneider Electric, we are dedicated to being at the forefront of this movement, and we are hopeful that the budget will reflect and support these priorities."

CARS24

Gajendra Jangid, Co-Founder & CMO of CARS24 wants the budget to make electric vehicles more popular. This includes tax breaks for both consumers (lower GST) and businesses (income tax relief). Jnagid also anticipates more charging stations and a skilled workforce to make EVs a success. In addition, better infrastructure and less red tape would benefit the entire auto sector.

Jangid is of the opinion that substantial investment in skill development, particularly in digital skills and emerging technologies like AI and renewable energy, is crucial. "This budget should ideally include specific allocations for upskilling programs, infrastructure development in industrial hubs, and streamlined regulatory processes to facilitate smoother operations for businesses," he says.

Recykal

"There is an urgent need for policy intervention and strategic resource allocation in the upcoming budget to address the challenges faced by India's informal waste management sector. This sector is a critical component of the country's waste management ecosystem, with a significant portion of waste being managed by informal workers and small-scale enterprises. However, it faces issues such as inadequate infrastructure, manual processes, and limited access to modern recycling machinery," says Abhay Deshpande, Founder and CEO, Recykal.

He adds, "By rethinking import duties on waste recycling machinery, the government can incentivise the modernisation of the waste management sector. This can lead to the adoption of advanced technologies for sorting, processing, and recycling waste, thereby improving efficiency and reducing environmental impact. Additionally, aligning recycling efforts with green investments can further bolster the sector by attracting financial resources towards sustainable waste management practices."


According to Deshpande, new machinery and better systems could create more jobs, especially by giving those already working in waste collection a chance for better pay and training. At the same time, this shift would help India move towards a greener economy by reducing waste and pollution.

Mankind Pharma Limited 

Arjun Juneja, Chief Operating Officer, Mankind Pharma Limited and Chairman, Pharma Committee, FICCI highlights the need for increased public healthcare spending to ensure wider access to quality medicines. He also proposes export incentives and expanded production-linked schemes to boost domestic manufacturing. 

"Key priorities include increased R&D funding, strengthening healthcare infrastructure, and streamlining the GST framework. We urge the government to prioritize increased public healthcare spending, reaching 2.5% of GDP, to ensure wider access to quality medicines. Strengthening R&D infrastructure and fostering innovation are crucial for long-term success. Enhancing export incentives (RoDTEP) and expanding PLI schemes will promote local manufacturing. Regulatory reforms and a renewed focus on primary healthcare, particularly in rural areas, are essential for our sector's resilience. Attracting NRI medical talent back to India will solidify our position as a global pharma leader," he says. 


Hero Vired

Akshay Munjal, Founder and CEO, Hero Vired advocates for continued prioritization of education, health, and skill development to cultivate a robust and globally competitive workforce. 

He says, "Developing a strong tech infrastructure is critical for fueling growth and job creation in high-demand sectors like AI, cybersecurity, and big data. Our policies must equip our workforce with essential digital skills and technologies, enabling India to spearhead global advancements. By embracing research-driven skill development tailored to job creation, we can elevate the effectiveness of our education sector. Implementing a regulatory framework for EdTech should also be evaluated as it can bring organization, transparency, and efficiency to the sector, benefiting all stakeholders involved. T By adopting these measures, we can strengthen our education system holistically and position India as a global leader in digital skills, knowledge and technological innovation.”

Indian Industry wishlist for Budget 2024: Tax relief, EV push & skill upgradation

As India prepares for the forthcoming Union Budget, scheduled on July 23, one of the key focus areas for the government should be around the consumer industry. Anand Ramanathan, Partner and Consumer Products and Retail Segment Leader at Deloitte India said that the government should consider allowing 100% FDI in multi-brand retail trade, at least for goods that get manufactured in India. He said that the government should also implement a cohesive national policy in this regard. 

Notably, India's consumer industry is expected to grow and become world's 3rd largest by 2027, behind the US and China. In India, the middle class is the main driver of consumer demand and expenditure. However, there's still a disparity in consumption between urban and rural areas in the country.

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Ramanathan suggested that continuous investment in ONDC and digital infrastructure building is required to open new growth avenues in the Indian economy.

Further, the government's focus on capex and private-sector manufacturing and service activity should support income generation and boost economic activities. The focus should be on the local implementation of the government policies. 


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According to Ramanathan, the rise in rates of levy for MUVs and luxury sedans has made the segment unaffordable for most consumers. Higher rates will not only directly affect consumers but will also have indirect consequences in terms of increased pricing for taxis, a higher logistics burden, etc. To address the limited volume growth of the industry, the government may reconsider high rates, he suggested.

Besides, reducing the import rates for EVs should be the government’s top priority, as it will boost the automotive sector and support the logistics and transportation sectors.

"To boost India’s viability as the next manufacturing hub, especially with the China+1 strategy to bolster investment in the country, the government should consider extending the concessional tax regime. This will help boost investor confidence and will also supplement the PLI schemes being run by the government," Ramanathan added.

Budget 2024: Focus should be on '100% FDI in multi-brand retail trade,' Deloitte India says

The newly formed government is set to announce its first budget on July 23, and the Indian gaming and esports industry is hoping for increased sports funding and the inclusion of esports in Khelo India. The video game industry is expecting tax incentives for developers and clear classification of Real Money Games and video games.

In 2023, Finance Minister Nirmala Sitharaman presented the Union Budget, which many in the online gaming industry found encouraging. Storyboard18 spoke with multiple stakeholders from the esports and gaming industry to understand about their expectations for the upcoming Union Budget 2024.

Allocate Budgets for Centers of Excellence

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 increased investment in the sports budget and inclusion in national games such as Khelo India."

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Rathee further noted, "Esports has the potential to win India medals in international sports competitions. Gaming would benefit from the allocation of budgets for centers 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."

RMG Players Will Rejoice

Rohit Agarwal, Founder and Director of Alpha Zegus, a next-gen marketing agency specializing in gaming and lifestyle, shared his perspective: "I believe in this budget session, we will not see any major updates about the video gaming and esports industry. We might, however, see updates regarding the regularization of the RMG segment and changes in policy structures/tax slabs for the same."

He added, "The battle between the division of esports and RMG is still prevailing and is being escalated to the highest authorities for judgment. For this reason, we can expect some budget modifications. I hope that decisions regarding RMG don't negatively impact the esports industry."

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Recently, a consortium of 70 Indian gaming companies wrote to the PMO and I&B Ministry suggesting a reduction of GST on video games to a 12 percent bracket to promote sustainability and better cash flow for game companies, as well as exemptions on import/customs duties, IGST, and any cess for proprietary hardware development kits used for testing and developing video games.

Need for Tax Incentives

Roby John, CEO and Co-Founder of SuperGaming, said, "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."

He further stated, "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."

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Treat Us Differently

Shalin Shodhan, CEO and Founder of Masala Games, creators of the upcoming Indian mystery adventure Detective Dotson for PC and Xbox Series X and S, said, "Video games are the intersection of art, commerce, and tech. They need to be treated differently from other forms of entertainment. We hope the government considers supporting video game development by adding it to educational curriculums and skill development initiatives. This would allow India to shine on the world stage as a net contributor to game development instead of just being a consumption market."

Encourage Banks to Consider AVGC-XR IPs as Assets

Expecting multiple policies on financial incentives, taxes, game developer funds and encouraging banks to classify AVGC- XR IPs as assets, Deepak Ail, CEO and Co-founder of Dot9 Games, creators of the mobile shooter FAU-G: Domination, said, “We are seeing a fundamental shift in our industry with more made-in-India video games than ever. This will make original IP video game production the norm. The Government of India can play a crucial role in leveraging the potential of our industry with appropriate policies so that the Indian video game industry will emerge as a significant exporter and contributor to the nation’s goal of achieving a 10-trillion-dollar economy by 2047.”

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Establish SEZ for Manufacturing

Vishal Parekh, Chief Operating Officer of CyberPowerPC India, expects the government to enhance investments in building digital infrastructure and establishing Special Economic Zones dedicated to the manufacturing of PC and gaming equipment. 

Parekh said, “The gaming and esports sectors hold immense potential for career opportunities for the youth, which in turn encourages more investments in digital infrastructure, such as faster internet connectivity and wider broadband penetration. This will be crucial in ensuring that gamers across the country have access to seamless and immersive gaming experiences. The government can further fuel the gaming hardware industry by introducing subsidies for research and development in gaming technology.”

Indian gaming industry awaits tax exemptions, SEZ in upcoming budget

Union Finance Minister Nirmala Sitharaman will be presenting the first budget of the Modi 3.0 government on July 23. The budget will focus on taxation, education, healthcare, infrastructure, and other sector. However, FM Sitharaman is most likely to have a special focus on Artificial Intelligence and Machine Learning because of the global buzz around this latest technological revolution.

The application of AI brings in 3-10x improvement in business processes. Therefore, it could significantly contribute to India's ambitious goal of making it a $5 trillion economy if used effectively. The Centre and the state have already implemented policies focusing on AI such as the Bhasini program, and YuvAI for skilling youth. Tamil Nadu, Karnataka, and Telangana have launched schemes around AI.

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Deloitte India’s Debashish Banerjee, and Shrenik Shah, Partner have suggested some of the pre-budget expectations around the AI sector. They said that the government should boost investments in AI or encourage private investment via tax cuts and identify new research areas such as quantum computing in AI, digital nudge for social good using AI, Explainable AI (XAI), Gen Chem, and Computational Biology. 

The government should focus on implementing AI technology in tax assessment, Deloitte India's partner added. "The use of AI by tax officials will help focus on non-compliant taxpayers, including early detection of non-compliance trends and taking preventive measures," the experts said. Besides, the Centre should reduce friction in integrating AI technologies with existing tax systems to enhance the performance of AI in tax compliance, relaying the correct information to taxpayers, etc, they said.

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The experts also proposed a Public-Private Partnership (PPP) model for the implementation of AI in sectors such as education, agriculture, and healthcare. For instance, using lifestyle-based data to predict future health scores for the population to reduce the burden on healthcare and proactive mitigation. 

To boost AI and analytics, they said that it should improve the trust of customers and organizations that their data is protected and secured. 
India must produce penalties for unethical use, helping it shape its image as a global AI hub, they added.

BUDGET 2024