ICC Men’s Cricket World Cup: A Boon for India’s Economy
The upcoming ICC Men’s Cricket World Cup, set to kick off in India, promises not only to ignite cricketing passions but also to give a significant boost to the country’s economy, to the tune of Rs 8000 crore. This anticipated economic windfall is further magnified by the fact that the tournament coincides with the festive season, a period when consumer spending traditionally surges.
A comprehensive analysis conducted by the economic research division of Bank of Baroda has projected the economic impact of the World Cup, considering both conservative and optimistic scenarios. According to their findings, the total expenditure associated with the World Cup is expected to range from Rs 18,000 crore to Rs 22,000 crore, translating to a nominal increase in GDP of Rs 7000-8000 crore over a two-month period. The primary beneficiary of this grand sporting event ICC Men’s Cricket World Cup is expected to be the services sector, with tourism and hospitality leading the way.
The ICC Men’s Cricket World Cup tournament spans 45 days and features 48 matches involving 10 teams, attracting a minimum of 2.5 million spectators to 10 venues across the nation. The viewership, encompassing TV and OTT platforms, is anticipated to surpass the 552 million Indian viewers who tuned in for the 2019 World Cup. Moreover, millions worldwide will be watching the highly anticipated tournament from the comfort of their homes.
The Bank of Baroda report, authored by economists Jahnavi and Aditi Gupta, underscores the economic potential of the World Cup. It draws parallels with the 2019 Cricket World Cup in England, which significantly contributed to the UK’s GDP, raising expectations for India to experience a similar economic boost. The report suggests that the event’s direct and indirect impacts will stimulate the country’s GDP and provide a much-needed boost to the consumption sector.
A large part of the projected revenue will come from ticket sales, which are estimated to range from Rs 1600 crore to Rs 2200 crore based on stadium capacity and ticket prices. Sponsorship and TV rights for the event are also expected to be lucrative, potentially reaching Rs 10,500-12,000 crore. This includes revenue generated from official broadcast rights for both digital and TV media, as well as advertisements from marquee sponsors throughout the tournament.
The travel expenses for teams, including umpires and commentators, are estimated at Rs 150-250 crore, assuming that each team contingent consists of 25-35 members. Foreign tourists attending the matches are predicted to spend between Rs 450-600 crore on accommodations, food, interstate travel, and shopping. Domestic travelers are also expected to contribute Rs 150-200 crore to the economy through hotel stays, travel, and dining expenses.
Additional expenditures are anticipated for event management, volunteers, and security, amounting to an estimated Rs 750-1,000 crore over the duration of the tournament. Sales of sports memorabilia and merchandise are expected to add another Rs 100-200 crore to the economic windfall. The surge in food orders through mobile apps during the tournament is estimated to be around Rs 4000-5000 crore.
Furthermore, the government is poised to benefit from increased tax collections, including those from ticket sales and GST on hotels, restaurants, and food delivery services, providing additional fiscal leeway.
The ICC Men’s Cricket World Cup event’s global appeal is expected to drive substantial revenues from ticket sales, along with a boost in the aviation and transportation sectors. The hospitality industry, including hotels and the food sector, will witness increased business activity. The World Cup’s alignment with India’s peak festive season may also stimulate retail demand, contributing further to its economic impact.
The ICC Men’s Cricket World Cup holds the promise of not only being a cricketing spectacle but also a significant driver of economic growth in India. The anticipated surge in spending across various sectors underscores the far-reaching impact of sports events on economies and serves as a testament to cricket’s enduring popularity in the country.