What Does the Cricket World Cup Contribute to the Indian Economy

• 58
• 0

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 host cities.

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, and shopping.

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."