Cricket World Cup Expected to Boost India's Economy with Increased Spending
|Former Indian Cricketer Sachin Tendulkar carries the ICC Cricket World Cup Trophy ahead of the ICC Men's Cricket World Cup India 2023 between England and New Zealand at Narendra Modi Stadium on October 05, 2023 in Ahmedabad, India.(Image-Getty)|
The International Cricket Council's World Cup has kicked off in India, igniting a cricket frenzy among fans. This passion for the sport is anticipated to provide a short-term boost to India's economy as consumers spend on tickets, travel, accommodations, and festivities. Economists estimate that World Cup-related spending could contribute an additional 180-200 billion Indian rupees to the economy in the October-December quarter. This boost aligns with the festive season, with services consumption, hospitality, and tourism sectors expected to benefit the most.
The tournament's 13th edition, consisting of 48 one-day international matches over two months, began in India, with previous data indicating that 1.2 million people attended matches in 2011 when India last hosted the World Cup. MakeMyTrip, an online travel and hotel booking platform, reports increased bookings for cities hosting key matches, such as Ahmedabad and Dharamshala. Ahmedabad, in particular, has seen a 200% surge in room reservations, with demand for homestays rising as cricket fans travel in larger groups to attend matches.
While this cricket fervor is leading to higher hotel and flight fares, it might also lead to a decline in spending on other entertainment options like movies, theme parks, and malls. However, industries such as food delivery, quick commerce, alcoholic beverages, soft drinks, media, and online gaming are expected to thrive during the World Cup. Many companies are likely to offer World Cup-specific promotions to tap into this surge in consumption.
One potential downside could be higher inflation due to increased demand. Economists estimate that this upward bias in inflation during the World Cup period could range between 0.15-0.25%. However, distinguishing the impact of festivals from the influence of the cricket spectacle on the economy remains challenging.