What Does the Cricket World Cup Contribute to the Indian Economy
The ICC Men's Cricket World Cup 2023, hosted by India from
October 5 to November 19, is poised to have a substantial and positive
influence on the Indian business landscape. The tournament is anticipated to
inject more than $1.6 billion into the Indian economy and facilitate the
creation of over 100,000 jobs. This economic windfall is further underscored by
an astonishing sponsorship revenue projection of up to $150 million (equivalent
to over ₹1,248 crore), as reported by
sources within the know who disclosed these figures to The Economic Times.
Notably, global corporations are channeling substantial
investments to gain visibility during the Cricket World Cup in India. For these
brands, this sporting extravaganza presents a golden opportunity to tap into a
cricket-obsessed nation boasting a staggering 1.4 billion people. Madan
Sabnavis, the Chief Economist at the Bank of Baroda, emphasizes that the
consumers in the world's most populous nation represent the ultimate prize,
particularly for international brands.
According to Jehil Thakkar, a partner at Deloitte India, brands
are expected to allocate approximately Rs 2,000 crore (equivalent to $240
million) for advertising slots on streaming platforms during the tournament. A
10-second advertising slot during matches now commands up to Rs 3 lakh,
reflecting a 40 percent increase compared to the 2019 World Cup.
Cricket undeniably reigns supreme as the most popular sport in
India, attracting a staggering $1.5 billion in sponsorship and media spending
annually, accounting for a whopping 85 percent of all sports-related spending,
according to research from Jefferies. Sabnavis aptly points out, "Cricket
has less global fanfare compared to sports like soccer, but the level of frenzy
witnessed in India around cricket is unparalleled."
The hospitality sector is poised to reap significant benefits
from the World Cup. Hotels in cities hosting crucial matches, such as
Ahmedabad, Dharamsala, and Kolkata, have already experienced a surge in
bookings and increased tariffs. Furthermore, the aviation industry is
anticipating a boost, with airlines reporting heightened demand for flights to
Beyond these economic sectors, the World Cup is expected to give
a shot in the arm to Indian tourism. Foreign spectators are anticipated to
journey to India to witness the matches and explore the country during their
stay, leading to an uptick in spending on hotels, restaurants, transportation,
The retail sector is also primed for a positive impact.
Consumers are expected to open their wallets for televisions, smartphones, and
other electronic devices to catch the matches. Additionally, there is projected
to be an increased demand for cricket-related merchandise such as jerseys,
bats, and balls.
In summary, the ICC Men's World Cup 2023 represents a
substantial opportunity for Indian businesses, poised to generate billions in
revenue, create thousands of jobs, bolster tourism, and enhance the global
recognition of Indian brands and products.
Here are specific instances of how Indian businesses are reaping
the rewards of the World Cup:
Hotel Chains: Eminent hotel chains like Taj Hotels, Oberoi
Hotels, and ITC Hotels are reporting heightened bookings and increased tariffs
in cities hosting key matches.
Airlines: Leading airlines like IndiGo, Air India, and Vistara
are witnessing a surge in demand for flights to host cities.
Travel Companies: Prominent travel companies like MakeMyTrip and
Yatra.com are recording increased bookings for tour packages that include World
Cup match tickets.
Retailers: Retail giants such as Flipkart, Amazon India, and
Reliance Retail are experiencing a surge in demand for televisions,
smartphones, and other electronic devices for match viewing. Furthermore, there
is an expected uptick in the demand for cricket-related merchandise, including
jerseys, bats, and balls.
Furthermore, companies are anticipating a robust performance in
the December quarter as the World Cup coincides with India's festive season,
which spans from September to January. Diwali, a major festival, falls in
mid-November, coinciding with the culmination of the tournament.
Yannick Colaco, co-founder of FanCode, the International Cricket
Council's official retail partner in India for the event, aptly summarizes,
"The Cricket World Cup is the biggest sporting event of the year for fans
across the country. No other sports tournament captures the hearts and minds of
Indian fans like a World Cup. That's why you see brands and companies making a
beeline to be associated with the tournament."