What Budget 2022 offers to the Gaming Industry?

  Sarath       March 2, 2022

Gaming was not a career option for the past few years but the scenario for gamers has changed with the rapid progression, especially in the mobile gaming industry. India is a mobile-first country with many first time mobile users accessing the Internet, making the nation a hotspot for mobile gaming.

The 2022 Budget offers many possibilities for the gaming industry. Game development companies in India has welcomed the government initiatives aimed at expanding the Indian gaming and animation sector that could create more employment opportunities in the growing industry.    

Expectations for Budget 2022 for Gaming Industry

Lower tax slabs

One of the main concerns for the gaming sector in India is the taxation policies held by the government. The gaming industry expected a lenient and inclusive taxation policy including lower tax slabs, reduction of duty on esports equipment that would push the barriers for games and game development companies across the country.

Regulations to demarcate online skill games from games of chances

Another long-pending demand from the gaming industry was ensuring proper regulations for the online gaming industry differentiating online skill games from games of chance. Online gaming companies are advocating responsible gaming as players often intend to fall for gaming addiction.

Economically  feasible 5G services  

An announcement regarding 5G services is something expected from the budget that could add to the expansion of the gaming industry in India. 

What Budget 2022 Offers

The 2022 Budget has some interesting offers for the AVGC  ( Animation, Visual Effects, Gaming, and Comics) industry with the government proposing plans to enhance the growth of the digital industry.

The main highlight for the gaming industry in the 2022 budget is the government's decision to set up AVGC  Promotion Taskforce to boost the gaming sector. Investments in the industry will rise and employment opportunities will be created for skilled talents of the nation.

The announcements regarding spectrum auctions for 5G services is also expected to enhance the gaming industry in terms of live streaming and cloud gaming as well. The GoI (Government of India)initiative to allocate 5% from the annual collections universal service obligations fund to promote internet access to people living in rural and remote areas at affordable rates, will also help in the expansion of the gaming industry.

The Budget has also focused on reducing the duty for mobile parts (including mobile chargers and camera lenses) that could make smartphones cheaper in India. This would lead to the expansion of the growing community of mobile gaming enthusiasts in India.

The idea of partnering with States for gaming SEZs will help in the establishment of more game development studios and create a talent base for the industry.

With the announcement of central bank digital currency (CBDC), things may turn out in favour of the gaming industry as seamless transactions could be possible in terms of buying gaming assets and in-app purchases.

The Indian gaming industry is expected to be a billion-dollar industry by 2025. An accelerated and progressive involvement from the government can inspire the game development companies in India to develop high-end games.