The Indian government is considering a proposal to permit 100% FDI in online real-money gaming, excluding betting and gambling. This potential policy change, driven by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to provide clarity and ease in attracting foreign investment for the rapidly growing sector, which has struggled with regulatory ambiguity and complex tax demands. The move is intended to support Indian startups in raising capital more effectively and stimulate growth in the industry.
Despite the positive outlook, the industry still faces ongoing challenges, including unresolved issues related to the classification of games and retrospective taxation. Regulatory clarity and the implementation of proposed self-regulation mechanisms are crucial for ensuring fair opportunities across the sector.
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