India Tightens Grip Over Tech Firms With New Regulations And Policies


In a significant move, India has introduced a series of regulations and policy changes impacting the tech sector. These changes have drawn from the antitrust approach in Europe and the surveillance practices in China, signaling a shift towards tighter governance in the tech industry.

Key Takeaway

India’s regulatory changes are reshaping the tech landscape, impacting online gaming, surveillance practices, and the operations of global tech giants in the country.

Impact on Online Gaming and Startups

Last year, the Goods and Services Tax (GST) Council imposed a 28% tax on online gaming, casinos, and horse racing, affecting the growth of fantasy sports startups in India. This measure has raised concerns among leading investors and entrepreneurs, warning that it could result in a substantial loss of market value and jobs.

Challenges for Online Gaming Companies

The new tax regime has prompted Indian online gaming companies to explore opportunities in international markets such as South Africa and Latin America to sustain their businesses amid the impact on their revenues in the home country.

Telecommunications Law and Surveillance

In 2023, India enacted a new telecommunications law, providing the government with enhanced capabilities to monitor networks and traffic data for national security interests. This has raised concerns among privacy advocates regarding the potential undermining of encryption and confidentiality.

Regulatory Shift and Global Tech Giants

India has become a crucial growth market for global tech giants, with companies like Google, Meta, Amazon, Apple, Microsoft, and Netflix making significant investments in the country. However, the introduction of more protectionist policies and increased scrutiny over content has posed challenges for these tech titans.

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