Signalling a thaw in regulatory headwinds that had kept Chinese technology firms cautious about expanding in India, gaming and technology giant Tencent on Friday announced a commitment of over ₹10 crore in resources and programs spanning across curriculum development, industry training and mentorship towards advancing India’s orange economy.
The company has signed separate three-year memorandums of understanding (MoUs) with the Services Export Promotion Council (SEPC) and the Game Developers Association of India (GDAI), which seeks to advance the AVGC ecosystem while creating a pathway to strengthen India’s position as a global hub for services export in the sector.
The announcement holds importance because it marks one of Tencent’s clearest public expansions in India after years of regulatory uncertainty surrounding Chinese-linked investments and digital businesses following the India-China border tensions. Tencent had faced hurdles too, specially with the popular PUBG game.
Long-Term Commitment
At a media briefing in New Delhi, Tencent executives said that improving regulatory clarity around online gaming and esports had helped create confidence for engaging on a long term basis in the Indian market.
“We welcome the enhanced regulatory clarity, especially in the gaming sector. The Government of India’s focus on the orange economy is not only well received, but also a major reason why we are here today,” Danny Marti, Head of Public Policy and Global Affairs at Tencent, said during the interaction. He added that earlier conversations with stakeholders often required the company to distinguish between esports and real-money gaming platforms, which emerged as a point of contention leading to confusion in the sector.
Tencent has centered its India strategy around coming off as a strong player for the gaming and creator ecosystem more than immediate commercial expansion.
Local Capacity Building
Under the partnership with SEPC, Tencent seeks to work on national capacity building, industry dialogue and enabling Indian AVGC companies to integrate with international value chains. The collaboration is also expected to facilitate exposure for Indian gaming and creative technology firms in overseas markets.
The MoU with GDAI, meanwhile, focuses on grassroots developer engagement and skilling. Planned initiatives include a National Game Jam targeting more than 10,000 students annually, Train-the-Trainer programs for educators across colleges and expanded participation in the Indian Game Developers Conference (IGDC).
The company also sees India as a potential source of globally exportable gaming intellectual property (IP). Yong-yi Zhu, Vice President, Business Operations, Strategy and Compliance at Tencent Games Global, said the company wants to support Indian developers in creating games and stories that can travel internationally.
“There are so many incredible stories that local Indian developers want to tell globally, and we want to provide that opportunity and experience,” Zhu said.
For India’s gaming industry, Tencent’s re-entry is likely to be seen as a strong signal that global gaming companies are once again beginning to view the country not only as a large consumer market, but also as a potential global production and talent hub.