Economists at Bank of Baroda stated that the retail sector will benefit from the Cricket World Cup, which also falls during the holiday season.
Economists from Bank of Baroda predict that the Cricket World Cup might inject up to ₹ 22,000 crore ($2.6 billion) into the economy of host India.
Starting on Thursday and lasting until mid-November, the quadrennial competition is anticipated to draw sizable numbers of visiting spectators from both domestic and foreign locations. The matches, which are being held in ten cities, will mostly help the tourism and hospitality industries, according to a note released on Wednesday by economists Aditi Gupta and Jahnavi Prabhakar.
A lot of people will be making “sentimental purchases of merchandise,” they added, and the event, which is being held in India for the first time since 2011, also happens to fall within the three-month festive season that began in September.
The analysts predict that the tournament will draw significantly more Indian viewers than the 552 million that it did in 2019, both on television and on streaming services. That might bring in between ₹ 10,500 crore and ₹ 12,000 crore in sponsorship income and TV rights “on a conservative basis.”
The World Cup, nevertheless, might potentially encourage inflation. The analysts said that in addition to the effects of the holiday season, airline tickets, hotel rentals, and service prices in the unorganized sector in the ten host cities have increased significantly for the period. According to them, overall inflation for October and November might increase by 0.15% to 0.25%.
According to the analysts, the tournament will also boost revenue for the national government by generating higher taxes on ticket sales, goods and services taxes on lodging, dining, and food delivery, and providing the nation with more fiscal room.
