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Promotion and Regulation of Online Gaming Rules, 2025

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Introduction and Purpose

The Ministry of Electronics and IT (MeitY) released the draft Promotion and Regulation of Online Gaming (PROG) Rules, 2025, open for public feedback until October 31, 2025. These rules, framed under Section 19 of the PROG Act, 2025, aim to promote legitimate online gaming formats such as e-sports and online social games, prohibit harmful online money games, protect users—especially minors, and establish a transparent regulatory framework to govern the rapidly growing online gaming sector in India.

Key Provisions of PROG Rules, 2025

Promotion of E-sports and Social Games

  1. E-sports: Promotion and oversight are assigned to the Ministry of Youth Affairs and Sports.

  2. Online social games: Overseen by the Ministry of Information and Broadcasting, which can issue guidelines for content that is age-appropriate, recreational, educational, or skill-based.

  3. Registration: Voluntary for online social games, allowing them to operate without mandatory registration while encouraging transparency and accountability.

Establishment of the Online Gaming Authority of India (OGAI)

  1. A corporate body with civil court–like powers, capable of conducting inquiries, summoning individuals, and functioning digitally.

  2. Responsibilities include classifying online money games, registering games, issuing directions, and imposing penalties.

  3. Decisions are appealable to an Appellate Authority within 30 days, ensuring checks and balances.

Composition of OGAI

  1. Chairperson: Ex officio Additional Secretary or Joint Secretary from MeitY.

  2. Five ex officio members: Representing Information & Broadcasting, Youth Affairs & Sports, Financial Services, and two other members (one with legal expertise).

  3. Secretary (Director rank) assists the Authority.

  4. The Chairperson may consult experts to support OGAI’s functions, ensuring specialized inputs in decision-making.

Proceedings of OGAI

  1. Meetings can be held physically or digitally, with a one-third quorum.

  2. Decisions made by majority; the Chairperson has a casting vote in case of a tie.

  3. Members with personal interest must abstain.

  4. In emergencies, the Chairperson may act immediately but must report to OGAI within seven days.

  5. Proceedings remain valid despite procedural irregularities, vacancies, or defects that do not affect merits.

Determining an Online Money Game

  1. An online money game involves monetary deposits, wagering, or winnings convertible to money.

  2. Once identified, OGAI can order its cessation, prohibit related advertising, initiate enforcement action, and publicly list it on its website.

Registration Framework

  1. Providers must submit digital applications detailing game description, target age group, revenue model, user safety, and grievance mechanisms.

  2. E-sports require prior recognition under the National Sports Governance Act, 2025 for registration.

  3. Applications are processed within 90 days, with OGAI authorized to request additional information.

Certificate of Registration

  1. Valid for up to five years.

  2. Games cannot be advertised as registered without a valid certificate.

  3. Certificates can be surrendered early, subject to accrued liabilities.

Material Change Reporting

  1. Providers must report changes affecting the nature, features, or revenue model of the game.

  2. This prevents unregulated evolution of games into prohibited online money games.

  3. Applies to both e-sports (including changes in recognition status) and online social games.

Suspension, Cancellation, and Penalties

  1. Registrations may be suspended or cancelled for material changes, repeated violations, false information, or legal non-compliance.

  2. OGAI can impose penalties Suo moto or on complaints, considering user harm, unfair gains, repeated violations, with sanctions including fines, suspension, cancellation, or prohibition.

  3. Resolution of penalties is aimed within 90 days, with funds credited to the Consolidated Fund of India.

Grievance Redressal Mechanism

  1. Three-tier system:

    1. Every provider must maintain a functional grievance mechanism.

    2. Users can appeal to the Grievance Appellate Committee within 30 days; resolution aimed within 30 days.

    3. Further appeal to OGAI within 30 days; OGAI can issue directions, corrective measures, or penalties.

National Online Social Games and E-Sports Registry

  1. OGAI maintains and publishes a registry of all registered games and service providers, along with a list of identified online money games, promoting transparency and user awareness.

Transitional Provision for User Funds

  1. Financial institutions can return user funds collected before enforcement of the Act within 180 days, without treating the repayment as facilitating online money gaming.

  2. Ensures smooth financial closure of pre-existing obligations.

Annual Report Requirement

  1. OGAI must prepare a comprehensive annual report detailing its activities, submit it to the Central Government within 180 days of the financial year’s end, and authenticate it through a meeting of OGAI, ensuring administrative accountability.

Growth of Online Gaming in India

The online gaming sector in India has emerged as one of the fastest-growing segments of the country’s digital economy, fueled by affordable smartphones, cheap mobile data, and a predominantly young population. India ranks among the largest online gaming markets globally in terms of user base, with over 500 million gamers in 2023, projected to surpass 650 million by 2025. Despite its vast potential, the industry is heavily dominated by Real Money Gaming (RMG), including fantasy sports, rummy, poker, and similar platforms. In 2023, the online gaming revenue in India was estimated at around ₹16,000 crore, with RMG contributing 80–86% of this revenue. Non-monetary games such as casual, educational, and e-sports form a smaller but steadily growing segment. The RMG sector contributes approximately ₹20,000 crore annually in GST, attracts ₹25,000 crore in investments, generates employment for nearly two lakh people, and supports over 400 companies.

Why the Ban Was Imposed

Despite the sector’s economic significance, the dominance of RMG has raised serious social concerns. Addiction and massive financial losses are widespread, with an estimated 45 crore Indians collectively losing about ₹20,000 crore each year on real-money gaming platforms. Mental health issues, including suicides linked to gambling debts, have been reported, such as the 32 cases recorded by Karnataka police in just 31 months. Furthermore, the industry structure is distorted, as 86% of online gaming revenues are concentrated in RMG platforms, leaving little room for creative or educational games to thrive.

Regulatory and Structural Challenges

The online gaming sector has faced multiple regulatory challenges. Ambiguities in the “skill versus chance” distinction allowed quasi-gambling apps to flourish unchecked. The sector’s fragility became evident in 2023 after a 28% GST imposition led to major losses, layoffs, and investor exits. Many RMG platforms relied more on tax loopholes and user losses than genuine innovation. Additionally, investigations revealed that some platforms were being misused for terror financing and illegal messaging, posing national security risks. Though gambling and betting are restricted under laws such as the Bharatiya Nyaya Sanhita, 2023, and various state legislations, the online space remained largely unregulated until recent measures closed these loopholes.

Significance of the Ban

The ban on RMG platforms is significant for multiple reasons. It aims to protect vulnerable populations from compulsive gambling, debt accumulation, and related suicides. It also corrects market distortions by shifting focus from RMG to creative, skill-based, and export-oriented games. Regulatory clarity is another key benefit, resolving ambiguities in the skill versus chance debate and simplifying enforcement. Social welfare is also addressed, as the ban safeguards household savings, reduces predatory advertising, and curbs associated crimes. Additionally, the government plans to promote e-sports as a legitimate sport and support social and educational games that foster skills, cultural knowledge, and creativity.

Regulations Governing Online Gaming in India

India’s online gaming sector is governed by multiple regulatory frameworks:

  • Information Technology Act, 2000: Along with the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, it requires intermediaries to prevent unlawful content, register money gaming platforms with self-regulatory bodies, and empowers the government to block illegal websites or apps. Between 2022 and 2025, over 1,500 gambling and betting websites were blocked under this provision.

  • Bharatiya Nyaya Sanhita, 2023: Sections 111 and 112 penalize unlawful economic activities and unauthorized gambling, prescribing imprisonment of 1–7 years and fines.

  • Integrated Goods and Services Tax Act, 2017: Regulates illegal and offshore gaming platforms, requiring registration under the Simplified Registration Scheme. The Directorate General of GST Intelligence can block non-compliant platforms.

  • Consumer Protection Act, 2019: Prevents misleading advertisements and empowers the Central Consumer Protection Authority to penalize influencers and celebrities endorsing betting platforms.

Global Lessons: Inspiration from Finland

Globally, India can learn from Finland, which has built a globally competitive gaming ecosystem despite its small population. Finland hosts over 250 gaming studios, generates more than €3 billion in turnover, and has produced international hits through companies like Supercell and Rovio. Its success stems from an export-led, talent-dense, and innovative ecosystem, achieved entirely without money-based gaming apps. India’s gaming sector should adopt a similar approach, focusing on creativity, skill-based games, intellectual property, and global exports rather than relying on RMG platforms that erode household savings and social welfare.

Conclusion

The PROG Rules, 2025 provide a comprehensive regulatory framework to govern online gaming in India. By balancing promotion of legitimate gaming formats with protection against harmful online money games, the rules aim to ensure user safety, transparency, and accountability, while encouraging e-sports and online social games as safe recreational and skill-based platforms. The creation of OGAI, registration processes, grievance redressal mechanisms, and public registries reflects a systematic, modern approach to managing a rapidly evolving sector.


 


 


 

Qualifications, Not Caste, Basis for Appointing Priests

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The Kerala High Court (HC) has ruled that the appointment of temple priests is a secular activity, and therefore subject to constitutional principles of equality and non-discrimination under Articles 14, 15, 25, and 26. The judgment dismissed a petition filed by the Akhila Kerala Thanthri Samajam and upheld the 2022 rules of the Travancore Devaswom Board (TDB), which require institutional training and certification for the appointment of priests.

Background of the Case

The Dispute

  • Traditionally, priesthood in TDB temples was passed through hereditary Brahmin lineages, where training occurred under a senior Thanthri (chief priest).

  • A certificate from this guru was considered the main qualification, limiting priesthood to specific caste groups.

Introduction of New Rules (2022)

  • The TDB mandated that aspiring priests must obtain certification from a Thanthra Vidyalayam—a formal, accredited institution teaching temple rituals.

  • Accreditation is provided by the Kerala Devaswom Recruitment Board (KDRB).

  • Objective: Standardize training, make recruitment merit-based, and open priesthood to all qualified individuals.

Challenge by the Thanthri Samajam

  • The Samajam argued:

    • KDRB had no authority to accredit institutions imparting sacred knowledge.

    • The reform undermined their spiritual authority.

    • Restricting certification to such institutions interfered with essential religious practices under Articles 25–26.

Kerala Government’s Stand

  • Priest appointments are secular administrative functions, not religious rituals themselves.

  • The reform promotes:

    • Social justice

    • Constitutional morality

    • Equality and non-discrimination

  • It ends caste-based and hereditary exclusion in temple priest appointments.

Kerala High Court’s Ruling

Qualifications over Caste

  • The Court upheld the 2022 rules, holding that eligibility must be based on training and objective qualifications, not caste or lineage.

Not an Essential Religious Practice

  • Restricting priesthood to a specific caste or family is not an essential religious practice protected under Article 25 or 26.

  • Essential religious practice must be:

    • Fundamental to the religion

    • Based on doctrine or integral tradition

    • Not rooted in social discrimination

Customs Cannot Override Constitution

  • Discriminatory, oppressive, or exclusionary customs are not protected by the Constitution.

  • The Court reiterated that constitutional morality prevails over social or caste-based traditions.

Authority of the TDB

  • As a statutory body, the TDB has the power to prescribe objective, secular qualifications for appointments.

  • Regulating appointments does not interfere with religious rituals themselves.

Significance of the Judgment

  • Promotes inclusivity in temple priesthood—open to all castes and communities.

  • Reinforces that state-managed religious institutions must comply with constitutional principles.

  • Continues the reform trend similar to earlier Supreme Court rulings promoting non-discriminatory access to religious spaces.

  • Strengthens the separation between secular administration and religious rituals, a key feature of Indian constitutional law.

Annual Survey of Industries (ASI) 2023–24

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The Ministry of Statistics and Programme Implementation (MoSPI) released the Annual Survey of Industries (ASI) for 2023–24, providing comprehensive insights into the performance, employment trends, and sectoral dynamics of India’s industrial sector. The survey, conducted by the National Statistical Office (NSO), covers factories registered under the Factories Act, 1948, bidi and cigar units under the Bidi & Cigar Workers Act, 1966, electricity undertakings not registered with the Central Electricity Authority, and large establishments with 100 or more employees listed in state Business Registers of Establishments. ASI is a crucial tool for policymakers, providing reliable data on industrial output, value addition, employment, and wages, which helps in framing industrial and economic policies.

Industrial Growth and Gross Value Added

According to the 2023–24 ASI data, the industrial sector’s Gross Value Added (GVA) grew by 11.89%, significantly higher than the growth in output (5.80%) and input (4.71%). This divergence indicates a rise in efficiency, with industries generating higher value per unit of input, reflecting better productivity and resource utilization. GVA growth demonstrates that the sector is not just expanding in scale but is also adding meaningful value, contributing more effectively to the national economy.

Leading Industries and Sectoral Contributions

The growth in GVA was primarily driven by industries such as basic metals, motor vehicles, chemicals, food products, and pharmaceuticals. These industries are notable for being both export-oriented and labor-intensive, combining employment generation with international competitiveness. Collectively, these sectors accounted for nearly 48% of total industrial output, underscoring their central role in driving industrial growth. The performance of these industries reflects a shift toward sectors with higher value addition potential, aligning with India’s strategy to enhance manufacturing exports and technological sophistication.

State-Wise Industrial Performance

Industrial activity remains geographically concentrated. The top five states contributing to industrial GVA were Maharashtra (16%), Gujarat (14%), Tamil Nadu (10%), Karnataka (7%), and Uttar Pradesh (7%). These states benefit from robust infrastructure, skilled labor availability, and policy incentives, which have made them attractive for both domestic and foreign investments. The concentration also highlights the need for balanced regional industrial growth initiatives, including industrial corridors and smart city development.

Employment and Wage Trends

The industrial sector’s employment increased by 5.92% year-on-year, reflecting that industrial growth is translating into job creation. Over the last decade (2014–15 to 2023–24), the sector generated approximately 57 lakh jobs, highlighting its importance in inclusive economic development. The average emoluments of workers rose by 5.6%, keeping pace with output growth, although wage growth still lags behind GVA growth. This indicates that while productivity is rising, there is a need to ensure equitable income distribution to strengthen consumption and labor welfare. The states leading in employment mirrored the GVA rankings: Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh, and Karnataka.

Opportunities for the Industrial Sector

The ASI highlights several opportunities for India’s industrial sector. Manufacturing’s contribution to GDP stands at 17%, which, along with a 4% growth in the All India Index of Industrial Production (IIP) in August 2025, underscores the sector’s potential to accelerate overall economic growth. India’s attractiveness as a global investment destination is evident from USD 81.04 billion in FDI during FY 2024–25, with an 18% increase in manufacturing FDI. Modernization in electronics, pharmaceuticals, automotive, and textiles opens avenues for higher value addition and global competitiveness. Policy initiatives such as the Production Linked Incentive (PLI) scheme, GST reforms, National Manufacturing Mission, and PM MITRA parks further facilitate industrial scaling, innovation, and export promotion. Workforce upskilling through Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and youth-centric employment programs enhances inclusive job creation, while the push for green manufacturing and renewable energy adoption aligns India with global sustainability trends, opening new markets.

Challenges Facing the Industrial Sector

Despite these opportunities, India’s industrial sector faces multiple challenges. Infrastructure bottlenecks—including deficiencies in logistics, power, water, ports, and warehousing—continue to limit efficiency. Micro, Small, and Medium Enterprises (MSMEs) face credit gaps and high borrowing costs, which constrains their growth and technology adoption. Globally, low-cost competitors like China and Vietnam challenge Indian manufacturers, compounded by limited R&D and design capabilities. Unequal adoption of Industry 4.0 technologies, especially among MSMEs, and concerns over automation-related job displacement further slow technological modernization. Trade barriers, tariff increases (e.g., US tariffs on Indian exports), and cautious Free Trade Agreements (FTAs) affect competitiveness. Workforce skill gaps remain significant, with only 4.7% formally trained, limiting advanced technology integration. Additionally, environmental regulations and net-zero commitments raise production costs, posing challenges in balancing sustainability with competitiveness.

Measures to Strengthen Industrial Momentum

To sustain and accelerate industrial growth, India must adopt a multi-pronged approach. Expanding Strategic Industrial Corridors and Smart Cities enhances connectivity, reduces logistics costs, and promotes balanced regional growth. Mission-driven initiatives like the National Manufacturing Mission, Make in India, and Atmanirbhar Bharat can prioritize sectors such as electronics, EV batteries, pharmaceuticals, textiles, and renewable energy, supported by fiscal incentives and global linkages. Workforce readiness through skill development programs is crucial for bridging technical expertise gaps. Financial inclusion and MSME support, via credit guarantee schemes, faster GST refunds, and startup incentives, are essential for scaling operations and integrating SMEs into global value chains. Sustainability efforts, such as promoting renewable energy, circular economy practices, and compliance with global standards like the EU Carbon Border Adjustment Mechanism (CBAM), enhance India’s global competitiveness. Lessons from global best practices, such as Japan’s cluster-based industrialization model, can be applied to strengthen manufacturing ecosystems and export integration.

Introduction to ASI

The Annual Survey of Industries (ASI) is the primary source of industrial statistics in India. It provides comprehensive data on various aspects of the industrial sector, including output, value added, employment, capital formation, and structural changes. This survey plays a crucial role in policymaking, economic analysis, and monitoring industrial performance across the country.

Legal Basis and Administration

The ASI is conducted under the Collection of Statistics (Amendment) Act, 2017, ensuring that the data collection process is legally backed and standardized. The survey is released and administered by the Ministry of Statistics and Programme Implementation (MoSPI) through the Industrial Statistics Wing of the National Sample Survey Office (NSSO). This wing is responsible for planning, coordinating, and compiling the data to maintain the accuracy and reliability of industrial statistics.

Objectives of ASI

The survey serves multiple purposes. It provides detailed data on industrial output and value addition, enabling analysis of productivity and efficiency in different sectors. Employment patterns, capital formation, and investment trends are also monitored through ASI. Furthermore, it helps identify structural changes in the industrial landscape, such as shifts in sectoral contributions or growth trends, which are essential for economic planning and policy formulation.

Coverage of the Survey

The ASI primarily covers factories and industrial units specified under various acts. Included establishments are:

  • Factories under the Factories Act, 1948 (sections 2m(i) and 2m(ii)).

  • Bidi and cigar manufacturing units, governed by the Bidi & Cigar Workers (Conditions of Employment) Act, 1966.

  • Electricity undertakings that are not registered with the Central Electricity Authority (CEA).

  • Industrial units employing 100 or more workers, identified through the Basic Records of Establishments (BRE) maintained by states.

On the other hand, certain establishments are excluded from ASI coverage:

  • Defence establishments and oil storage and distribution depots.

  • Departmental units, such as railway workshops.

  • Gas storage units.

This selective coverage ensures that ASI focuses on organized industrial units with substantial economic activity while excluding specialized or non-commercial units.


 

Conclusion

The ASI 2023–24 underscores that India’s industrial sector is on a strong growth trajectory, driven by efficiency gains, modernized industries, employment growth, and export potential. While challenges remain in infrastructure, skill development, technology adoption, and global competitiveness, India’s policy initiatives, FDI inflows, and sustainability focus provide a solid foundation for long-term growth. As India aims for a USD 35 trillion economy by 2047, manufacturing will act as a key engine of growth, positioning India not just as the “factory of the world,” but also as a global hub for innovation, sustainability, and industrial leadership.


 


 

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