Decoding the exponential growth of new-age sports: Pre-budget 2023 - From the esports & gaming lens
Esports and gaming are the new-age sports. The latest headlines about the Indian government recognizing them as a component of multi-sport events will be a big boost for online gaming, and the field of sports and entertainment will continue to see exponential growth.
With emerging trends in the sphere of esports and gaming, India has a unique and niche opportunity to exhibit its soft power in technology and data. Additionally, the government has also taken steps to promote esports in schools and colleges, which has helped to increase awareness and participation in the industry.
One of the significant drivers of growth in the Indian gaming industry is the government's recent inclusion of esports in mainstream and Olympic sports. This move has helped legitimize esports, attracting the attention of investors and corporates.
With the Esports Olympics taking place in June 2023, we are betting big on the Indian games competing on the global scene, winning medals, and bringing glory to the nation. As Finance Minister Nirmala Sitharaman will introduce the Union Budget 2023-24 in Parliament on February 1, 2023, a few experts in the field have made some pre-budget predictions.
Valuation of esports & gaming industry: What is the current & future state of new-age sports
Esports' meteoric rise in India has been nothing short of spectacular. Though still in its initial phases, the Indian esports business has rapidly grown to $2.5 billion in FY 2022, and is expected to reach $7.4 billion by FY 2025, according to ESFI reports.
Furthermore, the sector has a significantly higher economic impact as industry stalwarts predict it will create roughly INR100 billion in economic value between now and FY 2025.
Another trend in the Indian esports industry is the increasing number of corporate partnerships and investments. Companies such as Reliance Jio, Nazara Technologies, and Paytm have invested in esports organizations and tournaments. Meanwhile, other entities such as Xiaomi and Oppo have sponsored esports teams and events.
These partnerships and investments are helping provide the industry with the necessary funding and resources to grow and expand.
Mr. Vinod Tiwari, the President of the Esports Federation of India, added his opinion on the popularity of esports in India and his predictions on the 2023 Union Budget for esports:
"We are expecting a favourable move from our government during the Union Budget. Esports in the Indian landscape is progressing. The multisport event tag adds value to the credibility of esports like any mainstream sport enjoyed in India attracting more companies to invest as stakeholders or advertisers."
Remarking on the significant allocation of funds by the government, he said:
"In my personal opinion, the budget needs to be increased and allocated extensively for the growth of esports and the training of athletes. It would be a great advantage to the esports community if our government considers allocating the “Esports Development Fund” similar to countries like Malaysia, Korea etc. Not only the government but the Corporates should also start allocating budgets for esports."
Esports and gaming are millennial buzzes: How opportunities in business can be created through the new-age sports
Gaming is one of the most popular recreational activities among a large section of consumers, and time spent on it has only increased since the COVID-19 epidemic. Now, the multisports-event tag will definitely add value to its credibility like any mainstream sport enjoyed in India, thus attracting startups, global MNCs, and corporates to invest as stakeholders or advertisers.
In a way that revolutionizes the sporting & business fraternity, the esports and gaming sector offers a rich trove of real-time data. It thus allows marketers to build brand equity and enables them to carry out precise targeting based on age, area, gender, device, language, and interest groups to reach consumers and optimize greater ROI.
Commenting on a wider spectrum, Rohit Agarwal, the Founder & Director, Alpha Zegus, the next-gen marketing agency specializing in the domains of gaming & lifestyle, talked about GST slabs and commented on his expectations about the esports budget 2023:
"Firstly, there was a conversation a while ago about changing the GST slab from 18% to 28% for the online gaming segment. We genuinely hope this does not come into effect, since it would immensely affect our growing industry. We are currently on a gradually growing path of increasing in-app spending and purchases related to gaming. Making the slab 28% would set us back to square one."
He further added how schemes like Make in India can assist the growth of the industry, opining:
"Secondly, gaming - be it mobile or PC - requires hardware (semiconductors, batteries, etc). We are hoping there are some import duty relaxations on these items, or there is a bigger focus on the 'Make In India' initiative for these items. Any of these two actions will cause a drop in hardware cost, which will increase hardware accessibility and upgradability for gamers."
Concludingly, he remarked on the users' increased accessibility to the internet and how the esports ecosystem further drives user competition. He said:
"Lastly, we are hoping for internet & broadband services to be made cheaper & more accessible. The greater majority of the Indian gaming audience is from Tier 2 and Tier 3 towns, and a slash in internet pricing would encourage more young adults to take up gaming."
Are esports and gaming the new podium to achieve greater heights in sports?
The Government of India gave esports a major boost last month by integrating it with mainstream sports disciplines, and now it’s just a question of time for us to see the growth. In addition, the government is encouraging further investment in the industry through a combination of ease of doing business and financial incentives in the budget.
With proper backing, the esports sector has the ability to contribute to general economic growth, job creation, and the government's ambition of a trillion-dollar digital economy by 2025.
Commenting on the trends taking place in the industry and praising the government’s effort in uplifting esports as a mainstream sport, Mr. Animesh Agarwal, the Founder & CEO, 8bit Creatives, said:
"The sector aligns well with the government’s digital economy vision. The esports industry is growing at an impressive percentage and is only forecasted to grow more in the coming years, both in terms of viewership and revenue."
Gamers Rejoice: Esports now officially recognized as a sport in India
#esports #indianesports #sports #videogames #teamindia
@rashtrapatibhvn @narendramodi @ianuragthakur @KirenRijiju @NisithPramanik @Rajeev_GoI @WeAreTeamIndia @IndiaSports @TimesNow
timesnownews.com/technology-sci… https://t.co/3rnYNg13eU
He further talked about the importance of the government's investment in the industry, stating:
"We also need government impetus to invite more investments into the sector, through a mix of ease of business & financial incentives in the budget. With adequate support, the esports industry has the potential for overall economic growth, job creation and contribution to the government’s vision of a trillion-dollar digital economy by 2025."
R&D needs to improve, and more investment is needed as the gaming industry continues to grow
According to sources claimed by the ESFI, India became the largest consumer of mobile games in FY 2022 in total game downloads. During this time, India has had over 50.7 crore gamers, of which almost one-fourth (12 crores) were paying users. Last year, the total number of gamers rose by over 5.7 crore - an increase of about 12 percent.
Esports officially recognized as part of 'multi-sport' event by Government of India
Read @ANI Story | aninews.in/news/sports/ot…
#Esports #MYAS #MinistryOfYouthAffairsAndSports #SportsMinister #AnuragThakur https://t.co/n46k9LusWs
Gaming and esports is not a light-hearted business industry. Game production is a time-consuming and complex process that includes idea brainstorming, pre-production, production, and post-production.
As a result of continued breakthroughs in the domains of exponential technology and data analytics, gaming production has undergone a significant shift. This has invited organizations to use creative technology to make it more distinctive than it has ever been in its history.
Commenting on the same, Richa Singh, the Co-Founder and CEO of FanClash, Asia's Largest Esports Fantasy Platform, commented on the growth of new-age sports and her expectations about the 2023 budget. She said:
"No one can deny the fact that the esports industry has turned out to be the fastest-growing sectors in recent times. Recognising esports as a sport has further added to its advantage. It would help the esports sector if the government can allot a decent share of the budget for the esports industry."
She further opined that regulations and policies should support practices in the industry, saying:
"Indian Esports still has a long way to go and needs attention on funding for research and development, it needs reforms in tax incentives for game developers and esports organizations. Government can consider regulations and policies to support the growth of the industry to minimize risks of fraud, protect the rights of gamers and promote fair competition."
India has a massive potential to make a mark on the global esports stage with its giant talent pool. The country has a large number of skilled and dedicated esports players who have the caliber to compete at the highest level.
Indian players have already made a name for themselves in international competitions and tournaments, and with the right support and resources, they can continue to do so.
The esports industry in India is currently experiencing significant growth, thanks to increased internet access, the popularity of mobile gaming, and the government's recent inclusion of esports in mainstream and Olympic sports.