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  • Sachethan S. Narayana

IPL’s Impact on the Indian Economy




 Tourism and Hospitality:

One of the most significant contributions of the IPL towards the Indian economy is its boost to tourism and hospitality. According to the International Cricket Council (‘ICC’), India constitutes 90% of the global cricket fanbase which shows the demand and liking people have for the IPL.   With the craze of the IPL, bringing in lots of fans flocking to the stadium from all over the country, it not only drives hotel bookings and restaurant visits but also stimulates transportation, entertainment, and retail services. This influx of tourists acts as a catalyst for tourism growth.


Job Creation

In a country that celebrates cricket like a religion, the IPL is a mega event that extends beyond the cricket field. Ranging from cricketers and coaching staff to groundmen and security personnel in the field, it creates thousands of jobs amplifying economic activity in the country. The IPL generates opportunities across diverse sectors like advertising, marketing, media, and event management fostering job creation on a massive scale. This enhances the livelihood of many people in the country, further taking a step towards alienating unemployment and contributing to economic well-being.


Revenue Generation

The IPL serves as a boon for economic growth with its revenue-generating prowess. The factors contributing to it are as follows:

  1. Broadcasting rights: Among its many revenue streams, the lion's share of IPL’s revenue comes from broadcasting rights which have grown exponentially over the years. In the initial year, Sony Entertainment bought the rights for Rs. 8200 crores for 10 years. The recent sale of broadcast rights has gone up to Rs. 48,390 Crore for the editions 2023-2027. In that revenue, the TV rights account for Rs. 23,575 Crore (Star Sports), and digital rights account for Rs. 23,758 Crore (Viacom18). 

  2. Title Sponsorship: Like broadcasting rights, title sponsorship rights also took a big leap since the inception of IPL. While it started with DLF purchasing the rights of five seasons(2008-2012) for Rs.200 Crore, now Tata acquired the rights from 2024-2028 for Rs. 2500 Crores

Along with these, the IPL generates revenue through the sale of tickets and merchandise, and sponsorships for each team which trickles down to various stakeholders constituting a strong financial ecosystem.


Advertising Industry

It also benefits the advertising agency because of its large viewership. Most of the revenue from advertising sports comes from the IPL (including the Women’s Premiere League). As per a report in 2023, out of the Rs. 10000 Crore spent on advertising sports across various TV and digital channels, Rs. 6000 Crore belongs to the IPL. This makes the IPL the most celebrated season for the advertising industry.


Brand Promotion

The IPL gives out opportunities to many brands to promote their products via teams or stadium ads. Brands also strategically place the launch dates of their new products across the IPL season to garner more reach and visibility. In this way, many brands have come into the limelight. IPL also boosted the popularity of Fantasy sports with increased engagement of viewers.


Small Businesses Support:

The IPL is a great platform for local enterprises to enhance their reach and income. The neighbourhood eateries, souvenir shops, merchandise vendors, etc. witness increased footfalls thanks to the fans who want to watch matches or buy the merchandise of their favourite team. Additionally, with so much advertising and hype surrounding the IPL, it increases consumer spending, further aggravating the fortune of local vendors.


Global Recognition: 

With big star cricketers across the world, the engagement of their fans increases the viewership of the IPL all over the planet. This serves as a potent vehicle to get global recognition for India as a sport-loving nation. This will also act as a catalyst for promoting Indian brands to showcase their products to global audiences, thereby increasing trading and investment opportunities.


Conclusion

On a conclusive note, the IPL  drives the economic growth of the country by boosting tourism, creating thousands of jobs, generating huge revenue that contributes to the GDP of the country, promoting various brands, providing livelihood to many small businesses, and also serving as a platform to get global recognition for India. As we continue to enjoy every season, we are also cheering for the Indian economy to grow.


About the Author

Sachethan is a first-year B.A. Economics(Hons) from Jindal School of Government Policy. His areas of interest is business, economics and finance.

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