The eagerly awaited Cricket World Cup is finally here, and the entire nation is brimming with anticipation of a homegrown victory. If the Indian team emerges victorious, it will mark their third World Cup title since the tournament’s inception.
On Sunday, at approximately 2 pm, India will face Australia, the team with the most World Cup wins to its name. Amidst the fervor and excitement, it’s important to recognize that the current World Cup also holds the potential to significantly boost India’s economy for FY24. Let’s delve into the details of this anticipated economic upliftment.
Report by Bank of Baroda
According to a report by BOB Economics released earlier in November, several factors contribute to the anticipated economic boost. The event is expected to attract a large influx of individuals from across the globe, leading to a substantial surge in ticket sales. Additionally, the aviation and transportation industries are poised to benefit from increased travel and logistics. The hospitality sector, encompassing hotels, restaurants, and food delivery services, is also set to witness a significant upsurge in business. Moreover, consumer sentiment is expected to drive an increase in merchandise sales.
The timing of the World Cup coinciding with India’s peak festive season further enhances the potential for economic growth. BOB estimates that ticket sales alone could generate revenue between Rs 1,600 crore and Rs 2,200 crore. This projection is based on varying attendance levels for each match, with all India games expected to witness 100% occupancy.
Furthermore, the total viewership for the tournament is anticipated to far surpass that of the previous World Cup. BOB estimates that sponsorship and TV rights for the event could generate an additional Rs 10,500 crore to Rs 12,000 crore. The tournament is also likely to attract foreign tourists, contributing an estimated Rs 450 crore to Rs 600 crore in spending on hotels, food, travel, and shopping.
Domestic tourism is also expected to receive a boost, with BOB estimating that interstate travel, hotels, and food expenses for domestic tourists will generate an additional Rs 150 crore to Rs 250 crore. Additionally, local transportation costs and food expenses for those attending matches are estimated to contribute Rs 300 crore to Rs 500 crore.
The event is also expected to stimulate the food delivery industry, with screenings of matches at restaurants, cafes, and homes driving an additional Rs 4,000 crore to Rs 5,000 crore in food orders.
Based on these estimates, BOB expects the total expenditure during the World Cup to range between Rs 18,000 crore and Rs 22,000 crore. The success of hosting this grand event is anticipated to provide a strong boost to India’s overall GDP for FY24.
Apart from direct economic benefits, the government is also expected to benefit from increased tax collections on ticket sales, GST on hotels, restaurants, and food delivery services. These tax revenues are expected to provide the government with additional fiscal space.
In conclusion, the current World Cup has the potential to significantly boost India’s GDP, particularly given its coincidence with the festive season. The consumption sector, especially services consumption, is expected to receive the maximum boost, with the hospitality and tourism sectors likely to reap the greatest benefits.
The ICC Cricket World Cup final promises to be an unforgettable spectacle, with the potential to set new records and create history for India. If the Indian team emerges victorious, they will become the first nation to have won the tournament twice on home soil, a feat that would undoubtedly elevate the nation’s spirit and further contribute to the economic upsurge.