Impact of ICC World Cup on Indian Economy
Cricket in India isn’t just a sport, it is a religion as it is the most popular sport in India and has 90% of the global cricket fandom. The 13th edition of the quadrennial ICC MEN’S Cricket World Cup has returned to Indian soil after a long 12-year wait, creating an electric atmosphere as the event coincides with the three-month festive season. But unlike back in 2011, India is hosting all 48 matches for the first time, these matches will be played across 10 cities of India in 46 days. While the focus is undeniably on thrilling matches and fierce rivalries, there’s another game in play—the one that fuels the Indian economy.
Economists expect a generation of around 2100-2400 crores of rupees only from TV rights and sponsorship revenue along with Advertising and Sponsorships. Star Sports the official broadcaster of the event has already roped in big sponsors like HUL, M&M, IndusInd Bank, etc. A 10-second advertisement will cost ₹ 30 lakh.
The Food and beverages industry has already been experiencing a surge in sales as shares of Zomato, Jubilant Foodworks, and Devyani International are trading at their 52-week high.
E-commerce and online sales have seen a surge of 20% in delivery staff which clearly indicates the rise in consumption of people.
The demand for travel has increased domestically as well as internationally, as ticket fares of airlines have soared above 200% for the cities where 48 matches of the World Cup are going to be played, simultaneously the prices of hotels in these cities have also seen a huge spike. Industry players like OYO HOTELS have added above 100 hotels in the 10 cities. Also, service charges in the informal sector across the ten cities have seen a significant spike which may also lead to inflation for the ongoing quarter.
The World Cup will also help Indian government authorities in the collection of taxes via sales of tickets, GST on hotels, restaurants, and food delivery.
The ongoing ICC MENS WORLD CUP 2023 is proving to be promising for the aviation, hospitality, and food and beverages sectors. The event shows India’s prowess in hosting a global sporting event while providing significant economic benefits across various sectors.
Kautilya, IBS Mumbai.