Karnataka aims to lead India's gaming & animation sector, a strategic push for industry dominance

The government of Karnataka is gearing up to unveil a groundbreaking gaming policy, setting the stage for a major transformation in the animation and gaming sector. Priyank Kharge, the Minister for Information Technology and Bio-Technology is spearheading this initiative with the vision of making Karnataka the torchbearer in India's dynamic gaming and animation industry.

Inspiring progress nationwide

Kharge's ambitious plan isn't just for Karnataka, it's a calculated effort meant to motivate other Indian governments to adopt similar measures and create their own regulations to advance the gaming and animation industries. Karnataka wants to spark a national revolution in this developing field by setting the pace.

Recently , held a video conference with the gaming community and industry leaders for:
- Skill development
- Gaming Policy
- Gaming accelerator
- Gaming Summit in Bengaluru

Karnataka will be leading the way in animation & gaming sector for India. We will be soon having a… pic.twitter.com/JHN5ig5w38

— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) September 30, 2023

Collaboration with Industry leaders

Kharge recently organised a virtual conference that was attended by industry leaders and members of the gaming community. The conference provided a forum for in-depth talks on important subjects such as skill development, gaming policy, gaming accelerator programmes, and the possibility of holding a gaming summit.

Karnataka's gaming prowess

Online skill-gaming businesses flourish in Karnataka, where well-known brands like Gameskraft and Mobile Premier League (MPL) can be found. Recognising the value of international cooperation, Kharge also spoke with Thierry Berthelot, the French Consulate General, to discuss ways to advance the animation and gaming industries.

The growing Indian AVGC sector

The Animation, Visual Effects, Gaming & Comics (AVGC) sector is expanding at a rate never seen before, however, the implementation of the GST recently has slowed down the expansion slightly.

Following a nearly unanimous vote at the GST council's 50th meeting held on 11 July 2023, Horse-Racing, Casinos and online real-money gaming (RMG) companies are now subject to a 28 percent tax on their full face value come into effect from 1 October.

Karnataka's stance on GST

Karnataka, though, doesn't seem to agree with this decision because it neglected to include the tax rate in its most recent assembly session. Currently, states all throughout India are moving to impose this tax rate, either through ordinances or by passing laws in their legislative assembly. The Karnataka Goods and Services Tax Act has just been amended by an ordinance that Karnataka recently introduced.

Differing opinions

Krishna Byre Gowda, Revenue Minister, firmly backs the new GST system and calls it ‘eminently justified,’ but Kharge holds a different opinion. He thinks that this choice could hinder India's goal of becoming a trillion-dollar economy and could have significant repercussions for the country's video game and animation industries.