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Business News/ Markets / Stock Markets/  World Cup 2023: Certainly not a child's play; economic benefits aplenty
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World Cup 2023: Certainly not a child's play; economic benefits aplenty

The Cricket World Cup 2023 is expected to have a significant positive impact on the Indian economy, boosting sectors such as travel and hospitality, media and entertainment, retail, food and beverage, and aviation.

World Cup impact on consumption across categories (PTI)Premium
World Cup impact on consumption across categories (PTI)

India, home to 1.4 billion people, is currently hosting the 13th edition of the Cricket World Cup after a gap of a dozen years. It was in this very nation, during the last hosting of the event, that the Indian cricket team, under the captaincy of M.S. Dhoni clinched the World Cup after a 28-year-long wait. The victory was sealed in a thrilling moment, with Captain Dhoni's unforgettable six, forever etched in the annals of cricket history.

Turning the page to the previous World Cup in 2019, held in England, the Indian cricket team faced a defeat against New Zealand in a thrilling Semi-Final Match. Now, as we fast forward to the much-anticipated 2023 edition, the men in blue exude confidence in their pursuit of a third World Cup title. 

The World Cup event that kicked off on Oct 5 spans a full 46 days, featuring a total of 48 matches (40% of matches have already been completed)  that are spread across ten major cities in India. These host cities include Ahmedabad, Bengaluru, Chennai, Delhi, Dharamsala, Kolkata, Lucknow, Mumbai, Pune, and three more in Hyderabad. Beyond the joy and excitement the World Cup brings, this colossal event is expected to usher in substantial economic benefits for India.

Dilip Cherian, image guru, says that the most important impact of the World Cup cricket being held in India is, of course, on the broad image parameters on which India is compared with other venues.

“As the host country, extra attention gets  focussed, of course, on our aviation, hospitality, and retail sectors. How efficient they are under pressure and how our price/quality ratios compared with products in other parts of the world is, of course, what will matter eventually," he says. 

World Cup impact on consumption across categories 

According to a report by Airbnb, searches for stays in India have gone up dramatically in recent months, with Ahmedabad at the forefront of this cricketing fervour. Accommodation searches in Ahmedabad had witnessed a 4,000 percent spike, largely driven by the anticipation of the India-Pakistan match.

The aviation industry is also seeing an increase in bookings, as fans travel between host cities to catch the matches. IndiGo, a leading player in the Indian aviation sector, has reported a 20% increase in bookings for the months of October and November, compared to the same period last year.

Meanwhile, broadcasters and advertisers are spending heavily in anticipation of the Cricket World Cup 2023. Star Sports, the official broadcaster of the tournament in India, has reportedly sold over 90% of its advertising inventory for the tournament.

Sam Balsara, chairman of Madison World, says, “In any country a major sporting event always provides a boost, whether it is Olympics or Football and it is no different for cricket which is  considered a  religion in India. The number of groups, old students groups, office colleagues, families who have planned group visits to outstation to enjoy a match in a stadium is huge. No doubt Cricket is big business in India. The impact on Ad spends, travel, hospitality, sporting gear, sporting attire, event and promotion  agencies is huge and palpable."

The sale of cricket-related merchandise is also picking up, with fans buying everything from jerseys and caps to bats and balls. According to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI), the sale of cricket-related merchandise is expected to increase by 30% during the Cricket World Cup 2023.

Let’s look at the individual sectors that are poised to thrive during this world cup

Travel and hospitality: The tournament is expected to attract millions of visitors from both India and abroad, which will boost the travel and hospitality industries. According to a report by Kotak Securities, the Cricket World Cup 2023 could add up to 13,500 crore to the Indian economy, with a significant portion of this coming from the travel and hospitality sectors.

Media and entertainment: The Cricket World Cup is one of the most popular sporting events in the world, and it is expected to generate significant viewership in India. This will boost the media and entertainment industry, as broadcasters and advertisers spend heavily to reach the large audience. Kotak Securities estimates that the media and entertainment industry could generate up to 4,500 crore from the Cricket World Cup 2023.

Retail: The Cricket World Cup is also expected to boost retail sales, as fans purchase memorabilia, clothing, and other items related to the tournament. According to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI), the Cricket World Cup 2023 could boost retail sales by up to 2,500 crore.

Food and beverage: The Cricket World Cup is also expected to boost sales of food and beverages, as fans eat and drink while watching the matches. Kotak Securities estimates that the food and beverage industry could generate up to 1,500 crore from the Cricket World Cup 2023.

Aviation: The aviation industry is also seeing an increase in bookings, as fans travel between host cities to catch the matches. IndiGo, a leading player in the Indian aviation sector, has reported a 20% increase in bookings for the months of October and November, compared to the same period last year.

 

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ABOUT THE AUTHOR
Deepika Chelani
A business media enthusiast. She covers personal finance beat for LiveMint.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 30 Oct 2023, 10:20 AM IST
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