Priya Aditi
Economists at Bank of Baroda estimate that the Cricket World Cup could contribute as much as 22,000 crore ($2.6 billion) to the economic growth of the host nation, India.
The quadrennial tournament, which begins on Thursday and continues through mid-November, is anticipated to attract large numbers of domestic and international spectators. The matches being contested in 10 cities will primarily benefit the travel and hospitality industries, economists Jahnavi Prabhakar and Aditi Gupta wrote in a note on Wednesday.
The event, which is being held in India for the first time since 2011 and coincides with the three-month festive season that began in September, will be especially advantageous for the retail sector, as many people will make “sentimental purchases of merchandise,” they added.
However, the World Cup could also contribute to inflation. In addition to the impact of the holiday season, the economists foresee substantial price increases in the informal sector of the 10 host cities, as well as for airline tickets and hotel accommodations. Inflation may rise between 0.15 and 0.25 percent for October and November, they predicted.
Economists added that the tournament will contribute to the central government finances through increased tax collections on ticket sales, goods and services taxes on hotels, restaurants, and food delivery, providing the country with additional fiscal space.
Also read this:ENG vs NZ World Cup 2023 Head To Head Records, Pitch Reports, Playing XI, Live Streaming, Fantasy Picks For 1st Match
The economists anticipate that the total number of Indians who watch the tournament, including both television and streaming platforms, will be significantly higher than the 552 million who watched in 2019. This could generate between 10,500 crore and 12,000 crore in TV rights and sponsorship revenue, “on a conservative basis.”
