Oct 06 – The upcoming Cricket World Cup scheduled to be hosted in India is poised to have a substantial impact on the country’s Gross Domestic Product (GDP), potentially generating an additional economic output ranging from Rs 18,000 to Rs 22,000 crore, with a Gross Value Added (GVA) estimated at approximately Rs 7,000 to Rs 8,000 crore.
According to a report authored by economists Jahnavi Prabhakar and Aditi Gupta from the Bank of Baroda, entitled ‘Hitman and King’s cover drives to boost India’s GDP,’ the tournament is expected to bring about certain economic effects. While there may be some influence on services inflation, primarily due to increased prices for airline tickets and hotel accommodations, this impact is expected to be concentrated in the 10 cities where matches are scheduled during the months of October and November.
Furthermore, informal services, which are not typically included in the Consumer Price Index (CPI), might also experience significant price increases. However, distinguishing these effects from the usual spending patterns during the festival season could prove challenging. The report suggests that the inflationary effect is estimated to be within the range of 0.15 to 0.25 percent for these two months.
The Cricket World Cup is set to span 45 days and will feature 48 matches involving 10 participating teams. The report estimates that approximately 2.5 million people will attend these matches at various venues across India, with a much larger global audience tuning in to watch the tournament from the comfort of their homes.
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The report further provides a breakdown of expected expenditures, encompassing aspects such as ticket sales, TV rights, sponsorships, team expenses, spending by both foreign and domestic tourists, gig workers and event management, merchandise sales, spectator outlays, as well as expenditures related to screenings and food delivery services. In the base-case scenario, the estimated total economic impact is Rs 18,000 crore, while in the optimistic scenario, this figure could reach as high as Rs 22,000 crore.
Moreover, the government is anticipated to benefit from increased tax collections, including GST on ticket sales, hotels, restaurants, and food delivery services. This boost in government revenue is expected to create additional fiscal space for various initiatives.
