MIB and MeitY have clearly defined roles in regulating games sector, says Sanjay Jaju

Sanjay Jaju, Secretary, Ministry of Information and Broadcasting, Govt. of India

There is a clear division between the Ministry of Information and Broadcasting (MIB) and the Ministry of Information Technology (MeitY) in terms of governing the games sector in the country, MIB Secretary Sanjay Jaju told Moneycontrol.

"The content aspects are handled by us (MIB), because we understand this as a media entertainment business. The regulatory aspects are all handled by them (MeitY)," Jaju said on the sidelines of the India Game Developer Conference (IGDC) 2024 at Hyderabad.

In July, Moneycontrol had reported that a group of 70 video game studios and esports companies had written to the Prime Minister's Office (PMO), seeking a comprehensive policy that clearly distinguishes between video games and real-money games (RMG), in line with global standards.

They suggested the information and broadcasting ministry be made the nodal agency for video games and proposed the creation of two separate categories — video games and real-money games — in the Indian policy framework to ensure fair and balanced policymaking while capturing the fine distinction between the two.

"While video games are a form of software technology, they squarely come under the entertainment industry due to their primary function as a form of creative and artistic expression much like movies or web series," the letter said.

In December 2022, the government designated the MeitY as the nodal ministry for all online gaming matters, while the esports sector was assigned to youth affairs and sports ministry.

Read: Don't keep video games, real-money ones under same regulatory purview: Gaming studios tell MeitY

During a media roundtable, Jaju mentioned that the distinction has to be made between gaming and gambling. "What you see here (in this conference) is video games which are played by us and are completely legal... Video game development, or mobile game development is a very important element of the media and entertainment landscape of our country. It has a huge economic potential and employment potential... I think this distinction is very important," he said.

He also stressed on the importance of supporting the video gaming industry, noting that India has a rich cultural heritage of storytelling. "We need to harness and develop capabilities, allowing young innovators to not just create games but become enterprises that makes money and provide employment opportunities to many," he said. "Otherwise, you will have games coming out from rest of the world populating your own country."

Earlier this year, Prime Minister Narendra Modi had stated his intentions to cement India's leadership in the global gaming market. "I see a vast market emerging in the world of gaming. However, even today, the influence of gaming and the profits from creating these games are primarily held by foreign companies," Modi said in his Independence Day address on August 15.

"Bharat has a rich heritage and we can bring new talent into the world of gaming. We can attract children worldwide to games made in our country. I want the children of Bharat, the youth of Bharat, Bharat’s IT professionals, and Bharat’s AI professionals to lead the world of gaming," he said.

On September 18, the Union Cabinet approved the establishment of the National Centre of Excellence (NCoE) for AVGC-XR. Modeled after institutions like the IITs and IIMs, the NCoE will anchor India’s animation ecosystem by providing specialised training to both beginners and professionals. It will also foster research and development by uniting experts from various fields such as computer science, engineering, design, and art.

India is the fastest-growing games market in Asia, both in terms of revenue and gamers, according to Niko Partners, a market research and consulting firm that covers video games, e-sports and streaming in the continent.

The combined mobile, PC and console gaming revenue is projected to reach $943 million in 2024, up 13.6 percent from the previous year. The market is expected to surpass $1 billion in revenue by 2025 and reach $1.4 billion in 2028, clocking a five-year compound annual growth rate of 11.1 percent, it said. These figures do not include revenues from real-money games or exports.