The Cricket World Cup being held in India will impact the country’s gross domestic product (GDP) with an additional output of about ₹18,000 - 22,000 cr and the gross value added (GVA) will be about ₹7,000 - 8,000 cr, and will have a very minimal impact on the inflation, said economists from Bank of Baroda in their report ‘Hitman and King’s cover drives to boost India’s GDP’, referring to Rohit Sharma (Hitman) and Virat Kohli (King).

According to them, services inflation will be impacted for sure as prices of airline tickets, hotel accommodation, etc. have gone up for this period.

Also, the prices charged by the informal segment in the services sector [which is not tracked in the Consumer Price Index (CPI) index] would show a substantial increase.

“However, this would be restricted to these 10 cities (where matches are held) for the period of October and November only. As these trends are also witnessed during these months due to seasonal impact of festival season, the impact of the World Cup could be hard to separate. The upward bias in inflation on this score could be between 0.15% - 0.25% for these two months (without separating the festival spending impact),” the report said.

Earnings through the World Cup

The tournament is spread over 45 days with 48 matches between 10 teams.

“We estimate that at least around 25 lakh people are set to witness the sporting extravaganza at the 10 venues across the country for the 48 matches to be played, while even a larger number is expected to watch the highly anticipated tournament from their homes across the globe,” the report notes.

According to the report, the tentative expenditure under various heads are:

The base case scenario total comes to ₹18,000 cr and the Optimistic Scenario total is ₹22,000 cr. 

Government earning

21.84% of the broadcasting revenue of the World Cup is supposed to go to the government. The figure for which is estimated to rise as much as ₹955 cr. Direct and indirect expenses are also expected to lay somewhere around $1.6 bn (₹13,344.8 cr).

Apart from this, the government is also likely to mop up its tax collections through ticket sales, GST on hotels, restaurants-food delivery and others. The GST and tax collections during the entire event across different categories are expected to add to the government coffers which will give the government additional fiscal space, the report added.

World Cup expenditure for BCCI

The hosting cost of the ICC Cricket World Cup 2023 is estimated to be approximately ₹2,000 cr. The Board of Control for Cricket in India (BCCI) are supposed to spend approximately ₹1,500 cr for hosting the event.

The board would have to give $28 m (₹233.55 cr) to the International Cricket Council (ICC). On top of that, BCCI will spend approximately ₹955 cr which includes expenses for stadium construction-renovation, security, travelling, and marketing, among others.

(Source: IANS)

- Edited for style

For more such updates and news on the go, follow us on Instagram | YouTube | Facebook