Stats indicate that in 2015, the Indian Premier League (IPL) contributed $182 million to the Gross Domestic Product (GDP). The above stats imply that IPL is a critical contributor to the Indian economy.
The IPL contributes in a variety of ways to aid economic development. For instance, IPL creates employment and has a considerable contribution to the growth of the tourism industry. The government also earns taxes from IPL. This article explores how IPL contributes to the Indian economy and why its disruption may have far-reaching economic implications.
The place of IPL in the Indian economy
IPL is one of the best leagues in the world, which is comparable to premier leagues like the NBA. The association is a darling for multiple sponsorships, famous names, and others. IPL is the wealthiest sports organization India which has an approximate value of $40 per team.
Due to the richness of the league, it attracts enormous investments and massive fans. The league attracts a variety of mainstream broadcasting media like television that air their programs in different languages. This means that the fan base is vast and still increasing. Due to this trait, the IPL is attracting huge sponsorships. The league also collects massive amounts of money through selling of gate tickets, merchandise sales, and broadcasting rights.
In India, cricket has a passionate following with more than a billion fans. The youth are obsessed with the game, and everywhere one goes, the likelihood of seeing children playing the game are high.
Most adults are glued to their television sets or radio watching and betting on the IPL tournament. This further demonstrates the fact that the game is a critical ingredient to the Indian economy.
Cancellation of IPL and its effects on the economy
Due to the COVID 19 pandemic, many IPL activities have been put to a halt. Everything from cricket practice to IPL betting has been postponed and is now awaiting the decision of the authorities about when sporting activities can go back to normal.
According to the Sports Ministry’s advisory sent to all sports federations, all unavoidable sports events should be conducted indoors. However, the external affairs ministry issued a statement indicating that all IPL tournaments for the 2020 edition should be put to hold.
The remaining matches that were to take place between India and South Africa have to be conducted in stadiums without fans. This means that such a scenario may not attract huge sponsorships from various entities. For instance, the Maharashtra government canceled selling of tickets when it realized that matches would be conducted without fans.
The cancellation of IPL tournaments means that the Indian economy will lose a lot in terms of taxation. People who depend on the league as a source of employment may also lose their source of livelihood.
The tourism sector is also set to lose a lot because many international visitors may not come to the country this year to watch IPL tournaments.
In conclusion, the IPL match cancellation due to COVID 19 has adverse economic implications for the Indian economy. As a result of the cancellation, the government may lose a critical source of taxation, and firms that depend on the tournaments may lack business.