China's Tencent re-enters India's gaming market
What's the story
Chinese tech giant Tencent has announced its return to the Indian gaming market. The company's decision comes after a period of regulatory uncertainty and strained trade relations between India and China. Tencent's Head of Global Public Affairs and Policy, Danny Marti, said their renewed engagement in India shows confidence in the country's policy environment.
Strategic alliances
Tencent to invest ₹10 crore
To bolster India's digital gaming ecosystem and promote gaming exports, Tencent has partnered with the Services Export Promotion Council (SEPC) and the Game Developer Association of India (GDAI). As part of this initiative, the company plans to invest ₹10 crore in resources and development programs. Marti said Tencent welcomed the increased regulatory clarity in the gaming sector and appreciated India's focus on creative industries.
Regulatory hurdles
Addressing past challenges
Marti addressed the regulatory challenges faced by Tencent in the past, particularly after the Galwan Valley clashes between Indian and Chinese troops. He admitted that the company had faced difficulties during that time, especially with investments related to popular game PUBG. However, he welcomed India's move to relax investment restrictions for neighboring countries including China as a sign of a more favorable regulatory environment.
Market potential
India's vibrant gaming market
Marti highlighted India's growing creative economy and gaming industry, calling it a vibrant market with huge potential. He said the Indian government expects the AVGC (Animation, Visual Effects, Gaming, and Comics) sector to create over two million professional jobs by the end of this decade. This ambitious growth outlook is a key reason for Tencent to expand its presence in India.
Future plans
Building global talent pipeline from India
Yong-yi Zhu, Tencent Games Global VP for Business Operations, Strategy, and Compliance, said the company sees India's gaming industry as a market full of opportunities and long-term potential. He emphasized that gaming is one of the most social forms of entertainment globally. Zhu also expressed excitement about new intellectual properties (IPs) being created by Indian developers and hopes to help build a global pipeline of talent/content from India.
MoUs signed
Tencent's commitment to AVGC ecosystem development
Tencent has signed a three-year agreement with SEPC, a body associated with the Ministry of Commerce and Industry, to develop India's AVGC ecosystem. The company also signed a memorandum of understanding (MoU) with GDAI for grassroots developer engagement. This collaboration will include initiatives such as a National Game Jam involving over 10,000 students annually and training programs for educators across colleges.