Indian Video Games Industry Requests for Clear Classification

The Indian Video Games Industry has requested the newly formed Indian government to break the existing categorisation of online games. The industry asked for two separate categories – video games and real money games, for fair and equitable policymaking and to boost the sunrise sector’s growth in a new representation letter to the Prime Minister’s Office and to the office of the Minister of Information and Broadcasting (MIB). Check out more details below:

With this in mind, it has added several important suggestions aimed at accelerating this growth. This should aid in making the video game industry a significant contributor to India’s $10 trillion economic goal and a powerhouse for soft power exports.

“The Indian Video Game Industry (made up of purely entertainment-oriented digital games that do not have an element of monetary staking) will be worth $942 million in 2024. It is projected to reach $1.6 billion by 2029, surpassing the cumulative revenues of all Indian film industries and becoming the largest entertainment industry in India before the end of this decade,” says Harish Chengaiah, founder and CEO of Outlier Games – organiser of this representation. “We urge the government to take a measured and nuanced approach to video games as they have definite potential to spearhead India’s creative economy and soft power aspirations. Despite several requests to be involved in policy discussions, we were never given an audience. We hope at least now we get invited to deliberate on the unique circumstances of video games that are far different from real money games.”

The Indian Video Games Industry recommends these as part of the National AVGC-XR Policy, hoping for prioritisation and swift implementation of the said Policy.

Break up the Term “Online Games” into Distinct Categories of “Video Games” and “Real Money Games” for Conducive Policymaking
Controlling Misrepresentation – I&B Ministry to Issue a Notification that Restricts Media from Using Images of Video Games in Coverage Related to Real Money Games
Regulatory Streamlining – Appoint I&B Ministry as the Nodal Agency for Video Games, Create an AVGC-XR Wing and Appoint a Nodal Officer
Consider not Imposing Regulations Pre-Maturely on the Video Game Industry 5. Key Focus Area – Support Structures for Promoting Original IP Creation and Ownership
Bolstering Skilling and Vocational Training – Support for Professor of Practice and Train the Trainer Models, Updation to MESC and NSQF Mechanisms
Reforming Education – Creating Standards and Benchmarking Frameworks for Higher Education in Game Development and Esports.
Market Access – Setting Up Financial Assistance that Video Gaming Conference Organizers Can Access to Facilitate India Delegations and Pavilion at International Video Gaming Events.
Rationalising Import Duties and Easing Customs Process for Crucial Proprietary Development Hardware.
Corporate Tax Holidays and GST Rationalisation – Move Video Games from 18% to 12% GST Bracket.

The representation letter to the Indian government was signed by 70 companies from the Indian video games and esports industry.

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Indian companies that have signed this representation letter include Nodding Heads Games – developer of Raji: An Ancient Epic, FAU-G: Domination developer Dot9 Games, and Indus Battle Royale creator SuperGaming to name a few. The organiser of this representation is Chennai-based Outlier Games.

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