Shillong, October 5: The Cricket World Cup hosted in India is expected to have a significant impact on the country’s Gross Domestic Product (GDP), generating an additional output of approximately Rs 18,000-22,000 crore, with a Gross Value Added (GVA) of about Rs 7,000-8,000 crore.
As per IANS, a report authored by economists Jahnavi Prabhakar and Aditi Gupta from the Bank of Baroda highlights the potential economic effects of the tournament.
The report, titled ‘Hitman and King’s cover drives to boost India’s GDP,’ suggests that while there will be some impact on services inflation, primarily due to rising prices for airline tickets and hotel accommodations, this effect would be concentrated in the 10 cities where matches are held during October and November.
Furthermore, informal services, not tracked in the Consumer Price Index (CPI), might also experience a substantial price increase. However, separating these effects from the typical spending patterns during the festival season could be challenging, and the inflationary bias is estimated to be between 0.15-0.25 percent for these two months.
The Cricket World Cup spans 45 days and features 48 matches involving 10 teams. The report estimates that approximately 2.5 million people will attend the matches in 10 venues across India, with a much larger global audience watching the tournament from home.
The report provides a breakdown of tentative expenditures, including ticket sales, TV rights, sponsorships, team spending, foreign and domestic tourist spending, gig workers and event management, merchandise, spectator expenses, and screenings and food delivery. The base case scenario totals Rs 18,000 crore, while the optimistic scenario reaches Rs 22,000 crore.
Additionally, the government is expected to benefit from increased tax collections, including GST on ticket sales, hotels, restaurants, and food delivery. This boost in government revenue is anticipated to provide additional fiscal space.
