SOGI aims to address challenges amidst growth and the impact of 28% GST on India’s online industry
Shillong, June 12: Skill Online Games Institute (SOGI), a pioneering institution dedicated to providing comprehensive knowledge and data-driven insights into the online games industry, advocated balanced regulation and collaboration to foster the growth of India’s online games industry in Meghalaya today. Through this, SOGI aims to focus On growth, innovation, and education in the online games sector, tapping into the region’s potential and encouraging local talent to thrive in this hyper-digital industry.
SOGI is connected to making decisions based on facts, gathered both nationally and internationally, to safeguard the influence on the skilled online games industry and avoid emotional or moralistic biases. in a recent interaction with players, the Prime Minister emphasized the need for the government to understand the online gaming industry and make necessary changes to support its growth. His remarks highlighted the government’s recognition of the industry’s potential and the importance of creating a supportive regulatory environment. This vision aligns with the broader goal of positioning India as a global hub for digital entertainment including online gaming. This vision has led to the positive development of the establishment of the AVGC (Animation, VEX, Gaming, Comics) taskforce by the Ministry of Information & Broadcasting (MOIB), the identification of the Ministry of Electronics and Information Technology (MeitY) is the nodal ministry, and the introduction of regulatory frameworks through IT Rutes.
According to a recent report by Accenture, the global gaming industry will have surpassed $300 billion in 2021, outstripping the combined markets of the movies and music industries by over 3 times. in India, the sector witnessed an impressive Compound Annual Growth Rate (CAGR) of 28% between FY20 and FY23, the online games industry in India reached a market value of Rs 16,000 crore in FV23, with projections to more than double by 2029. The sector has been a major contributor to job creation, technological innovation, and foreign investments, attracting nearly INR 23,000 crores in assets over the past five years and producing three unicorns led by Indian entrepreneurs.
Despite rapid growth, India’s online gaming segment contributes a mere 1.1% to the global online Skill Online Games Institute (SOGI) Advocates Industry Growth and Responsible Gaming in Meghalaya and the rest of India SOGI aims to address challenges amidst growth and the impact of 28% GST on India’s online industry. Despite rapid growth, India’s online gaming segment contributes a mere 1.1% to the global online gaming revenue, whereas China contributes 25% and the US contributes 23%. This disparity indicates a substantial untapped potential within the Indian market, which, if harnessed correctly, could elevate India’s status in the global gaming industry. This borderless industry is fuelled by innovation and India could easily grow to S-10%. because of its natural ability in the held of Information Technology.
The online games industry in India faces significant challenges, particularly with the recent government regulations imposing a 28% Goods and Services Tax (GST) on fruit face value for online gaming. This regulatory change has raised concerns among industry stakeholders about its potential impact on the sustainability and growth trajectory of online gaming in the country. Previously. gaming companies were paying a tax of 18% applicable on the platform fees.
HUGE POTENTIAL NEEDS TO BE HARNESSED FOR INDIA
Anirit Kiran Singh, Founder and President of 5061, said, While We celebrate the rapid expansion and the immense potential of the online gaming industry in India, we must also address the hurdles that come with it. the 28% GST regulation process is a substantial challenge, impacting the overall profitability and Investment in the sector. This will not only stifle the industry’s potential leading to missed opportunities for economic growth and job creation, but also lead to more offshore illegal fly-by-knight operators. We must work collaboratively with the government to find a balanced approach that supports growth while ensuring fair taxation.
This increase in GST not only puts Indian companies at a huge advantage against international competitors it also offers the big Indian market of 300 Mn players to illegal International companies
who advertise in India luring players to come to their platform and Win without paying TDS GST. This also has huge PMLA (Prevention of Money-laundering Act) implications
NEGATIVE ASPECTS CAN BE ADEQUATELY ADDRESSED
Amrit believes that the challenges of the online games industry, particularly the risk of addiction and concerns under the Prevention of Money Laundering Act, can be mitigated using technology. Technological solutions can be employed to “time out” players who overindulge and to prevent money laundering. These concrete actions demonstrate the industry’s potential to address its challenges effectively. An Indian Council of Medical Research (ICMR) funded study by AIIMS researchers has shown that gaming disorder can be prevented through digital interventions, he added.
The Skill Online Games Institute believes that the government and industry need to work in tandem to ensure India harnesses the full potential of this huge industry in terms of creating jobs and contributing to GDP growth while mitigating the negative aspects like addiction through the use of technology and not through increased taxation that hands over the big Indian market to international players by disadvantaging Indian companies
SOGI has onboarded Yashvardhan Sinha, IFS, a distinguished diplomat, and former Chief of Information Commissioner of India, to its Advisory Board along with Shivani Jha, a dynamic tech policy lawyer and the leader of the E-Gamers & Players Welfare Association (EPWA). The latest introduction is Dr. Yatan Pal Singh Balhara who serves as the Secretary General of the World Association on Dual Disorders (WADD) and offers consultancy to esteemed organizations such as the World Health Organization and UNODC.
The Skill Online Games Institute (SOGI) is a pioneering institution dedicated to providing comprehensive knowledge and data-driven insights into the online games industry. With a mission to promote responsible gaming and industry growth, SOGI collaborates with leading academic and research institutions and engages with government bodies to chart a path that maximizes the industry’s benefits for India. Under the leadership of Amrit Kiran Sing, SOGI aims to unlock the enormous potential of the online games sector and create a thriving, innovative, and sustainable industry.
