Union Budget Expectations: Gaming industry after the ban of real money gaming

The ban on Real-Money Gaming (RMG) in India in 2025 marked a watershed moment for the digital gaming sector. While companies continue to navigate the aftermath of this regulatory reset, it has also created a clear inflection point for the industry’s long-term direction. With the Government of India signaling a strategic shift towards video gaming and the broader game-developer ecosystem, there is renewed optimism that the upcoming Union Budget will meaningfully recognize this transition.

Read more: India levels up: How the ban on Real-Money Gaming unlocked a $7.7B opportunity

Video gaming in India is now outpacing several other digital entertainment segments and remains among the fastest-growing sectors in Asia and globally. A policy framework and budgetary support aligned with this growth trajectory would give India its first real opportunity to build a sustainable video-game creation economy driven by developers, studios, and IP creation globally.

BITKRAFT’s India Opportunity Report 2025 revealed that the gaming and the interactive media sector, already a key engine in India’s digital media and entertainment space, is projected to triple in size reaching ~$8 billion by FY 2030. This growth positions India to evolve from a 500+ million strong gamer market into a globally competitive game-creation economy, anchored in original IP and developer talent.

In that context, The Tech Panda asked esports industry players what their expectations are from the Union Budget 2026.

Sridhar Muppidi, Chairperson, GDAI (Game Developer Association of India)

“As India accelerates toward its goal of a $1 Trillion digital economy, the gaming sector stands at a pivotal inflection point. Our recommendations for Budget 2026 focus on a ‘surgically targeted’ approach: rather than asking for new greenfield projects, we are advocating for dedicated ‘Gaming Carve-outs’ within existing flagship schemes like Startup India (SISFS) and Skill India (PMKVY). By earmarking funds for prototype development and specialized ‘Creative Tech’ apprenticeships, the government can provide the high-octane fuel needed for Indian studios to build world-class Intellectual Property. Our vision is to transform India from being the world’s largest consumer of games into its most prolific creator, ensuring that ‘Made in India’ games are played on every console and smartphone globally.”

Nitish Mittersain, Jt. MD & CEO, Nazara Technologies

“We are optimistic about the government’s continued focus on strengthening India’s digital and creative economy. For the gaming and interactive entertainment sector, a stable and predictable policy framework will be key to driving long-term growth and investor confidence. Support for domestic game development, encouragement of original IP creation, investments in skilling and digital infrastructure, and focused initiatives around esports and animation can significantly accelerate the industry’s momentum. India also has a unique opportunity to leverage its rich cultural heritage, mythology, and storytelling traditions to create globally successful gaming IPs. With the right ecosystem support, India can emerge as a global creative powerhouse in interactive entertainment. We look forward to a progressive, growth-oriented Budget that enables innovation while promoting responsible industry development.”

Anuj Tandon, Partner, India & UAE, BITKRAFT Ventures

“India’s gaming industry is at a defining inflection point, driven by a massive digital-first audience and global demand for content – especially since clarity on regulation by the government. Budget 2026 should recognize gaming as a core pillar of the AVGC-XR ecosystem, not just a consumer industry. My wish list would include tax incentives for global video gaming companies setting up shop in India that will help upgrade our talent pool to be industry ready to build games from India to the world. With the right policy push, India can emerge as a global hub for game development and interactive entertainment exporting our culture effectively.”

Anurag Choudhary, Founder & CEO, Felicity

“India’s gaming opportunity should increasingly be viewed through the lens of production, not just consumption. While the domestic market continues to grow, the larger long-term opportunity lies in building globally competitive games, original IP, and scalable publishing platforms that can reach international audiences. With clearer regulatory frameworks in place, the ecosystem can shift its focus toward strengthening fundamentals like product quality, retention, and sustainable monetisation, rather than short-term market cycles. India has strong engineering, creative, and analytical talent, and when paired with the right infrastructure and publishing systems, it has the potential to emerge as a meaningful global producer of gaming content, not just a large consumer market.”

Akshat Rathee, Co-founder & MD, NODWIN Gaming

“I’m hopeful that this year’s Union Budget acknowledges gaming and esports as emerging pillars of India’s digital and creative economy. Over the last few years, the sector has moved from the fringes to the mainstream, and what it now needs is execution-focused policy support. This includes fair and differentiated taxation for esports on par with traditional sports, easier access to banking and financial services for gaming businesses, and targeted funding under the AVGC framework to support Indian game development and original IP creation. With the right incentives for exports, infrastructure, and state-level esports events, India has a real opportunity to strengthen its global soft power through gaming. The focus doesn’t need to be on large announcements, but on practical enablers that help the ecosystem scale sustainably.”

Animesh Agarwal, Co-founder & CEO, S8UL Esports

“With the Promotion and Regulation of Online Gaming Act now in place, the conversation around gaming and esports has shifted from legitimacy to capacity building. This Budget presents a timely opportunity for policymakers to commit fiscal support towards training, infrastructure, grassroots competition development, and strengthening India’s global position in esports. Beyond gaming-specific measures, sectors such as sports, education and skill development, digital infrastructure, startups, and the creator economy will play an important role in shaping the ecosystem. Investments in training infrastructure, incubation programs, and R&D hubs can strengthen game development and creative production, while support for creator-focused upskilling, production facilities, and IP development can help build sustainable careers. Greater clarity and budget allocation at the central level, along with a dedicated funding focus for gaming within the AVGC framework, can further enable the creation of globally scalable Indian IPs.”

Sagar Nair, Head of Incubation, LVL Zero Incubator

“As India’s gaming and esports ecosystem matures, this Budget presents an opportunity to shift the conversation from consumption to creation. The industry today needs regulatory and taxation clarity across mobile, PC, and console gaming to unlock long-term capital, enable predictable business planning, and attract global publishing partnerships. Clear budgetary commitment toward the AVGC-XR mission, with a focus on original IP creation, advanced skilling, and studio incubation, can meaningfully accelerate India’s position as a global game development hub. Incentives that support local game development, improve access to gaming hardware, and encourage export-led growth will help Indian studios move up the value chain and build globally competitive products. Esports, too, stands to benefit from formal policy recognition and ecosystem-level investment that strengthens domestic talent pathways and international participation. Taken together, these measures can help India move beyond scale alone and build a sustainable, creator-led gaming economy with global relevance.”

Vishal Parekh, Chief Operating Officer, CyberPowerPC India

“Indian gaming and esports are at a defining moment. PROGA 2025 marked the start of a more structured and legitimised chapter for the industry, recognising its growing cultural and economic relevance. As the ecosystem scales, targeted budget support and clear policies will be key to sustaining this momentum.

“Treating esports prize money taxation in line with traditional sports, strengthening esports’ role within Khelo India, and encouraging participation across schools, colleges, and states can significantly boost grassroots development. We are hopeful the upcoming budget will support these priorities and help India build a globally competitive gaming and esports ecosystem.”

Rohit N Jagasia, Founder & CEO, Revenant Esports

“The esports industry is looking at a positive budget that would bring in strategic realignment. It is high time that the government sees the esports industry from a different perspective and not just an extension of the entertainment industry. The industry expects structural recognition and long term enablement from the government. There should be a continuity in the policy on skill-based gaming with more clarity on tax and compliance framework. As per estimates, the esports industry in India was valued at around $200 million in 2024 and is expected to touch $1 billion by 2033. The scope is huge and emphasis on building digital infrastructure, talent development, and export-led growth will be the right way forward with this Union Budget.”