On February 1, the Indian government presented its annual budget, announcing measures for various sectors, from agriculture to business. While the gaming sector’s importance has been growing, the government did not explicitly allocate funds to it, unlike countries such as Saudi Arabia and Malaysia, which have dedicated investments to gaming and esports.
However, India’s budget includes several indirect benefits for the industry, particularly through initiatives that support homegrown production, skilling, and innovation.
Shiva Nandy, Founder and CEO of Skyesports, one of India’s leading esports organizers, shared his perspective on the impact of the budget on the gaming sector:
“India’s gaming industry is on an exponential growth trajectory, yet we are still only scratching the surface of its full potential. The initiatives in this budget, particularly the Deep Tech Fund of Funds, could be a game-changer. This fund has the potential to fuel innovation in game development and esports, allowing India to produce world-class titles.”
The budget’s emphasis on talent development aligns with the needs of the gaming industry. According to Nandy:
“The establishment of National Centres of Excellence for Skilling, coupled with the government's focus on AI-driven innovation, means we could see a new wave of highly skilled professionals entering the gaming sector. This will boost the development of both esports talent and gaming infrastructure, pushing India to the global forefront.”
One of the most immediate impacts of the budget is the new tax slabs, which offer relief to the middle class. The disposable income equation changes significantly:
If the previous tax burden = X and the new tax burden = Y, then Disposable Income = Income - Y (where Y < X).
This increase in disposable income is expected to result in greater spending on entertainment, including gaming. As Nandy explains:
“The tax relief for India’s middle class—our primary consumers of esports—will enable more discretionary spending. More disposable income means increased participation in gaming, higher viewership for esports tournaments, and greater in-game spending. This will accelerate industry revenues, pushing India’s gaming sector into a high-growth phase.”
India’s gaming ARPU (Average Revenue Per User) has indeed been on the rise. According to The Unlistedintel, in 2024 India's ARPU in gaming stands at $6.38 with Shooting games driving the most of the spending (IAP) with a share of 24.7%. Although it is relatively small when compared to the global average, as well as to the figures from North America and Europe, it has experienced a significant increase in recent years.
Skyesports has played a key role in shaping India’s esports ecosystem. In 2024 alone, it organized 50+ tournaments across 12 gaming titles, awarding over ₹10 crore in prize money. A major milestone was bringing esports to the Tamil Nadu Chief Minister’s Trophy, a move that strengthened esports’ mainstream recognition. The organization continues to work with policymakers to ensure a strong foundation for gaming’s future.
Looking ahead, India's gaming industry is on the verge of significant growth. Recent Lumikai reports, in collaboration with Google, stated that this market is anticipated to grow to $9.2 billion by FY29. In FY24, out of the $12.5 billion 'new' media market, gaming occupies a 30% share, revealing the gaming sector's surge to $3.8 billion. There are 591 million active gamers in India, with 23 million new added in FY24 alone. In fact, 60% of gamers are from non-metro cities, and 43% of gamers are first-time earners in the 18-30 age group.
Considering the growth trajectory, do you think the Indian government should introduce a specific scheme or funding program for the gaming esports sectors in the annual budget similar to what the Malaysian government did? Let me know in the comments section.
Comments