How Sports-Led Economic Growth is Transforming India

In many third-world countries, including India, sports have long been viewed as a leisure activity rather than a viable career option. Social norms, lack of facilities, financial constraints, and cricket’s dominance pushed talent away. However, with the rise of social media and a globalised world, this mindset is changing. Government initiatives are also encouraging the younger generation to pursue sports seriously.

Let’s explore the economic impact of sports as a career, both for the nation and individuals.

Rising Opportunities in the Sports Industry

The perception of sports as a career is rapidly evolving, especially among India’s youth. While cricket still dominates, other sports like football, badminton, wrestling, and tennis are gaining ground. The rise of professional leagues such as the IPL, ISL, Pro Kabaddi, and Pro Wrestling League has driven viewership, sponsorships, and investments, fueling the industry’s growth. According to Sportstar, the Indian sports industry’s value in 2024 is Rs 15,766 crore, a fourfold increase over the last decade.

IPL experienced a significant rise in both business and brand value after the COVID-19 pandemic.

Economic Growth in the Indian Sports Industry

India’s sports industry has experienced considerable growth over the past decade. Increased fan engagement, corporate investments, government support, and the success of professional leagues have driven this progress. Here’s how the industry is contributing to India’s economy:

Broadcasting Revenues

Major broadcasters have seen significant revenue growth from broadcasting rights for global tournaments. This competition among media firms leads to more investments in the sector. Partnerships with multinational corporations for merchandise, apparel, and licensed products have boosted both e-commerce and brick-and-mortar sales.

Hospitality and Tourism

Sports events and leagues attract national and international audiences, increasing demand for accommodation, transportation, and hospitality services. This surge boosts tourism revenues and generates job opportunities, positively impacting the economy.

Employment Generation

The expanding sports industry has created jobs in sports management, coaching, marketing, event management, broadcasting, and hospitality. Spectators’ spending on tickets, travel, accommodation, food, and merchandise significantly supports small businesses and local economies.

Infrastructure Development

The sports industry’s growth has spurred investment in infrastructure, allowing India to host international-standard events. Key developments include:

• Stadiums: Modern stadiums have been built in cities like Bengaluru, Mumbai, and Delhi.
• High-Performance Centres: Elite athletes now benefit from advanced training facilities, sports science support, and medical care.
• Grassroots Sports Development: Initiatives like Khelo India, Target Olympic Podium Scheme (TOPS), and Fit India Movement have fostered a sports culture in smaller towns and villages.
• Public-Private Partnerships (PPP): Collaboration between the government and the private sector has played a vital role in building sports infrastructure.

Challenges Facing the Sports Industry

Despite the growth, several challenges remain that the government must address to make India a true sporting nation:

Infrastructure Deficiency: While significant progress has been made, much work is needed, particularly in Tier 2 and Tier 3 cities. Inadequate infrastructure can hinder an athlete’s development and performance.

Financial Sustainability: The Indian sports industry still struggles with financial sustainability. More private sector participation is necessary to unlock the industry’s full potential.

Gender and Social Barriers: Women’s and rural populations’ participation in sports remains low. Efforts from athletes, corporates, and the government are needed to support these groups and help them excel.

What’s Next?

On average, sports contribute 0.5% to a nation’s GDP, while in India, this figure is just 0.1%. To bridge this gap and surpass the global average, substantial private and public investments are needed, alongside a cultural shift that views sports as a respectable profession.

Continued investment in infrastructure, talent development, and sponsorship will boost India’s GDP, create jobs, and enhance international competitiveness. By addressing current challenges, India can emerge as a global powerhouse in sports, driving economic growth and sporting success for years to come.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

This article is for informational purposes only. This is not investment advice. Disclaimer: Teji Mandi Disclaimer