Union Budget 2025-26: Esports Industry seeks support for Olympic games preparations

Key demands for growth & development

Finance Minister Nirmala Sitharaman will present the Union Budget for fiscal year 2025-26 on February 1. As the budget day approaches, India’s video gaming and esports industry is eagerly anticipating policies that can strengthen its foundation and unlock its vast potential.

The rapidly growing sector has already caught the government’s attention, with Prime Minister Shri Narendra Modi advocating for the industry’s growth and the Ministry of Information & Broadcasting officially supporting tournaments like the WAVES Esports Championship. States across the nation are also demonstrating their commitment to promoting esports by organizing tournaments and encouraging gamers to participate.

39.8% (567.4 million) of the #Indian, and 61% of the #US (190.4 million) population play #videogames.If #India keeps growing to a similar percentage, imagine the potential for the #gaming and #esports industry.I believe that India (and #Vietnam) will be the next big #economy.

— Christian 'TrAiDoS' Staedter (@TrAiDoS) January 10, 2025

Olympic Esports Games in Saudi Arabia

One of the most anticipated opportunities this year is the Olympic Esports Games in Saudi Arabia, where India will be looking to make its presence felt on the global stage. Sharing his thoughts on how the Union Budget can strengthen the nation’s medal hopes, Akshat Rathee, , Co-founder and MD, NODWIN Gaming states, “As the Olympic Esports Games are approaching, investments in training infrastructure and coaching for esports athletes can solidify India’s position on the global stage. With the right support, gaming has the potential to drive economic growth and empower the next generation of talent in our country.”

India remains a heavily mobile-dominated gaming market, driven by the affordability of smartphones and data. However, during the Asian Games 2023, where esports debuted as an official medal sport, the nation’s athletes competed in four titles, with two being PC-based and the other two console-based.

The PC gaming market in India is steadily expanding, driven by the entry of brands like CyberPowerPC India, which are making high-performance gaming more accessible. With PC gaming titles expected to feature prominently in the Olympic Esports Games 2025, Vishal Parekh, Chief Operating Officer of CyberPowerPC India, sees this as a significant opportunity to position India as a global gaming powerhouse.

“Provisions such as reduced customs duties on gaming hardware, tax incentives to foster growth, and investments in digital infrastructure could enhance accessibility and affordability for gamers across the country. Supporting the adoption of high-performance gaming PCs would not only fuel India’s gaming culture but also boost our chances of securing medals in global esports tournaments,” says Vishal Parekh.

Game development studios are pushing for incentives to produce Made-in-India games that reflect the country’s unique culture and heritage.

Milind D. Shinde, Founder and CEO, 88 Games, notes, “As the Union Budget 2025-26 approaches, we are optimistic about the government’s continued focus on bolstering India’s video gaming and AVGC XR ecosystem. In 2025, we hope to see further incentives for gaming studios, particularly those developing Made-in-India games which reflect our unique culture and stories on a global stage. Enhanced investment in AVGC XR infrastructure, tax benefits for gaming startups, and support for training initiatives in gaming design and development can position India as a global hub for gaming innovation.”

Echoing similar sentiments, Akshat Rathee adds, “Incentives for semiconductor design and manufacturing could bolster the tech ecosystem and elevate gaming hardware standards. Initiatives supporting AI skilling for rapid game deployment and quality assurance would play a pivotal role in keeping pace with global advancements, enabling faster development cycles and enhancing game quality. Similarly, tax relief for middle-income groups could boost disposable income, creating opportunities for studios to develop India-centric gaming IPs.”

With the right measures and provisions, India’s video gaming and esports industry can achieve new heights in the upcoming year.

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