As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026-27 on February 1, India’s gaming and esports industry is anticipating critical policy measures that could unlock the sector’s full potential. Following the implementation of the Promotion and Regulation of Online Gaming Act (PROGA 2025), industry leaders are calling for execution-focused support, fair taxation, and infrastructure investment.
Table of Contents
Pre-Budget Expectations: Industry Leaders Speak
| Leader | Organization | Key Ask |
|---|---|---|
| Akshat Rathee | NODWIN Gaming (Co-founder & MD) | Fair taxation, AVGC funding, export incentives |
| Animesh Agarwal | S8UL Esports (Co-founder & CEO) | Training infrastructure, IP development |
| Sagar Nair | LVL Zero Incubator (Head) | AVGC-XR commitment, studio incubation |
| Vishal Parekh | CyberPowerPC India (COO) | Esports prize taxation parity, Khelo India integration |
From Legitimacy to Capacity Building
“With the Promotion and Regulation of Online Gaming Act now in place, the conversation has shifted from legitimacy to capacity building,” said Animesh Agarwal, Co-founder and CEO of S8UL Esports. The Budget presents an opportunity for fiscal support toward training, grassroots competition development, and strengthening India’s global esports position.
Industry leaders emphasize investments in training infrastructure, incubation programs, and R&D hubs to strengthen game development and creative production, with dedicated funding focus within the AVGC framework.
Taxation Parity and Policy Clarity
Akshat Rathee, Co-founder and MD of NODWIN Gaming, highlighted the need for “fair and differentiated taxation for esports on par with traditional sports” along with easier access to banking and financial services for gaming businesses. He stressed that practical enablers—rather than large announcements—can help the ecosystem scale sustainably.
Vishal Parekh, COO of CyberPowerPC India, echoed this sentiment, calling for esports prize money taxation aligned with traditional sports and stronger integration within the Khelo India initiative to boost grassroots development across schools, colleges, and states.
Shift from Consumption to Creation
“This Budget presents an opportunity to shift the conversation from consumption to creation,” stated Sagar Nair, Head of Incubation at LVL Zero Incubator. The industry needs regulatory clarity across mobile, PC, and console gaming to unlock long-term capital and attract global publishing partnerships.
Clear budgetary commitment toward the AVGC-XR mission with focus on original IP creation, advanced skilling, and studio incubation can accelerate India’s position as a global game development hub. Incentives supporting local development, gaming hardware access, and export-led growth will help Indian studios build globally competitive products.
Building Global Soft Power
With the right policy framework—including targeted funding, infrastructure support, and state-level esports events—India can strengthen its global soft power through gaming while moving beyond scale to build a sustainable, creator-led economy with international relevance.
For more gaming industry insights, visit TechnoSports’ esports coverage.
FAQs
What is the gaming industry seeking in Budget 2026?
Fair taxation parity with sports, AVGC framework funding, infrastructure support, and export incentives for game development.
How has PROGA 2025 changed the industry conversation?
It shifted focus from legitimacy to capacity building, enabling structured policy discussions around training and infrastructure.
