Union Budget 2023 Online Gaming and Esports Sector – Popular eSports stakeholders react to the Budget CHECK REACTIONS: The Union Budget 2023 has finally been presented by Finance minister Nirmala Sitharaman today which was the fifth and last full Budget of the Modi 2.0 government. From increasing, mobile production in India to removing the minimum threshold of Rs 10,000 for TDS on online gaming and providing clarity on taxability were the major highlights. Meanwhile, popular Esports stakeholders have reacted to the budget, understanding its impact of it in the coming future.
Here are the budget’s key highlights on the Gaming and Esports sector that was recently officially recognized as part of the “multisports event” category in India under the Ministry of Youth Affairs and Sports.
1. Mobile phone production in India has increased from 5.8 crore units valued at Rs 18,900 crore in 2014-15 to Rs 31 crore units, valued at Rs 2 lakh 75,000 crores in the last financial year.
2. 100 labs for developing apps using 5G services will be set up in engineering institutions.
3. Removing the minimum threshold of Rs 10,000 for TDS on online gaming and providing clarity on taxability.
As mentioned earlier, popular esports individuals reacted to the Budget positively. Here are the excerpts.
1. Rohit N Jagasia, Founder and CEO of Revenant Esports:
Even though the Budget announcement didn’t specifically bring out the matters of concern related to the AVGC sector or the esports segment to be precise, we are glad that attention is given to bringing in development that would positively impact our sector. The increased mobile phone production in India will directly impact the growing interest in mobile gaming.
India is a growing market for mobile gamers which will shape the Indian esports sector. Affordable mobile devices and the increasing accessibility of gaming platforms have also contributed to the growing popularity of esports in India. This is expected to further drive the growth of the Indian esports industry in the coming years.
We are also looking forward to the progress of 100 labs for app development using 5G services that will be set up in engineering institutions. Hopefully, this could be the beginning of the 5G era in India. The announcement of removing the minimum threshold of Rs 10,000 for TDS on online gaming and providing clarity on taxability is a big step forward, however, most esports games, like ours, don’t have any money withdrawing system so these are applicable for the online gaming sectors which are into Real Money Gaming.
2. Mr. Rishabh Bhansali, Co-Founder of FanClash, Asia’s Largest Esports Fantasy Platform:
The enormous upsurge in mobile phone production has been the impetus for the boom of the Esports industry in India. Pocket-friendly smartphones have taken gaming and fantasy Esports to every corner of the country and a further decrease in its prices as the government proposes to reduce customs duty on the import of certain inputs for mobile phone manufacturing will boost the sector’s growth like never before.
We are extremely delighted with the propositions made in today’s budget and looking forward to the golden days that are in store for fantasy Esports and gaming in the country.
3. Mr. Animesh Agarwal, Founder & CEO, 8bit Creatives:
The expansion of India’s gaming business mirrors and contributes to the growth of the mobile phone industry. The number of mobile gamers in India is projected to increase to 650 million by 2025, according to the most recent report from the Internet and Mobile Association of India (IAMAI).
The previous seven to eight years have been instrumental to the relationship between mobiles and gaming in India, with numerous mobile gaming titles being released and gaining popularity among the Indian gaming community. Developer dedication to expanding mobile gaming in India and the advent of different employment opportunities through mobile gaming have all contributed to an increase in the number of Indians adopting mobile gaming.
This has also contributed to the growth of the mobile device sector, as professional gamers frequently seek to upgrade their devices as they progress in their career. Even casual gamers seek better devices in their gaming journey. The interdependence of the industries is also reflected in the commitment of the mobile device companies to strengthening their presence in the gaming community through dedicated efforts and investments.
From launching gaming-specific devices such as One Plus Nord, ASUS ROG gaming phones, etc., to hosting multiple events and tournaments for the community, to working with gamers to build a community of mobile gamers, etc., mobile device giants such as One Plus, ASUS, Samsung, etc. are also investing heavily in the gaming industry in India. Indian Gaming has the potential to provide a significant boost to the electronics industry as a whole, spanning consoles, PCs, VR gadgets, mobile devices, wearables, IT accessories, and so on.
It will be fascinating to observe the next growth surge of gaming in India and how it contributes to and parallels the rise of the electronics industry.
4. Mr. Lokesh Suji, Director, Esports Federation of India & Vice President of the Asian Esports Federation (AESF)
As stated by our honorable finance minister Nirmala Sitaraman in today’s Budget, mobile phone production in India has seen a significant rise in the past few years and that has undoubtedly been a game-changer for the Esports industry in the country. Contributing extensively to propelling the industry to unimaginable heights, the increasing availability of smartphones in India at affordable rates has not only expanded the player base by making gaming more accessible but has also attracted investment from companies, resulting in the development of existing as well as newer games.
With the numbers further upscaling and 5G acting as a catalyst that fuels the industry’s flourishment, we are going to witness monumental growth within the Esports sector in the coming years. As we are still awaiting clarity on the taxability for Esports, we are hopeful that the decisions will be in favor of the community and impact it positively.
5. Rohit Agarwal, Founder & Director, Alpha Zegus, the next-gen marketing agency specializing in the domains of gaming & lifestyle:
An increase in smartphone production in our country will reduce smartphone costs drastically – that’s a big win for the gaming industry! More advanced smartphone tech will be available at accessible pricing, which means gaming will eventually no longer be restricted by hardware capabilities—really looking forward this to being massively adopted.
Modifications to the TDS limit will impact the Real Money Gaming industry more than the Esports industry. Since esports games majorly do not have a system of ‘money withdrawal’, TDS does not impact them. As for the RMG industry, the removal of the TDS threshold is a bit debatable. Most forms of income in India are considered under the Rs.10000 TDS threshold. If we consider ‘winnings’ as ‘income’, then the threshold should remain the same.
Editors pick
