The Influence of the ICC Cricket World Cup 2023 on India’s Economy

Magnus SEO
6 min readDec 10, 2023
Sachin Tendulkar —

Cricket holds a significant cultural and emotional resonance in India, surpassing its status as a mere sporting event. The 13th edition of the ICC Cricket World Cup has marked its return to Indian soil after an extended 12-year hiatus, evoking a palpable and dynamic atmosphere that permeates both stadiums and households. While the primary emphasis is unmistakably on the excitement of compelling matches and intense rivalries, a parallel economic dimension is at play — an element that contributes substantively to the economic engine of India.

Within this context, businesses in sectors ranging from hospitality to merchandise experience heightened activity, capitalizing on the fervor surrounding the tournament. Beyond the confines of the cricketing spectacle, the World Cup’s economic footprint is discernible, fostering opportunities and catalyzing growth in various facets of the Indian economy.

The Financial Implications of the World Cup

Economists at the Bank of Baroda have conducted a comprehensive analysis, projecting a potential economic windfall of $2.4 billion into India’s economy from the ICC Men’s Cricket World Cup. A corresponding report from BQ Prime concurs with this estimate, anticipating an economic upswing of approximately Rs 13,500 crore.

The 2019 World Cup witnessed an unprecedented viewership of 552 million, establishing itself as one of the most-watched tournaments in the annals of Indian television history. According to BARC data, the India-Pakistan faceoff alone garnered a staggering 244 million viewers.

Anticipation is high for an even more spectacular event on home soil. Economists foresee a surpassing of the 2019 viewership record, encompassing both television and streaming platforms. This optimistic outlook bodes well for broadcasters and sponsors, potentially translating into substantial TV rights and sponsorship revenue ranging from ₹105 billion to ₹120 billion.

The World Cup transcends the realm of matches; it metamorphoses into an experience akin to an Indian festival. Thousands of fervent cricket enthusiasts will undertake journeys via various modes of transportation to witness the live action. Accommodation bookings, culinary explorations, and the acquisition of coveted match tickets, ranging from a modest Rs 500 to an impressive Rs 40,000–50,000, will be the norm.

For those not physically attending, the screen will be their portal, engaging in online match streaming and partaking in snacking rituals. The consumption of snacks, cold beverages, and beer will dominate, often facilitated through e-commerce and food delivery services.

This grand sporting event is poised to catalyze economic growth across diverse sectors, including food delivery, quick commerce, alcoholic beverages, soft drinks, media, and online gaming. Madan Sabnavis, Chief Economist at the Bank of Baroda, projects that the economic impact of World Cup-related spending could inject a substantial Rs 18,000–20,000 crore into the economic output for the October-December quarter.

Cricket Diplomacy —

Influence on the Sports Sector

India’s sports industry serves as a focal point for substantial sponsorships and media expenditures, registering a commendable annual figure of $1.8 billion. A remarkable 85 percent of this financial allocation is directed exclusively towards cricket. Notably, cricketing events command a predominant share, with an annual commitment of $900 million for media spending, representing 8 percent of the nation’s overall advertising expenditure.

For the current fiscal year, brand expenditures are estimated at $240 million, with a 10-second advertising slot commanding up to INR 30 lakh. Distinguished entities such as TC Lottery, WINGO, PayTM Fast Game, Coca-Cola, Google Pay, Unilever, and other industry giants stand as official sponsors for the ongoing events.

This robust investment underscores the pivotal role cricket plays in the Indian sports landscape, showcasing a sustained commitment from both brands and advertisers to leverage the sport’s wide-reaching appeal. As a testament to its significance, cricket continues to draw substantial financial backing, affirming its status as a cornerstone of the country’s sports economy.

Surge in Consumption

Additionally, there has been a notable increase in consumption over the past decade, driven by a growing number of individuals now receiving more substantial remuneration. According to a recent analysis conducted by BNP Paribas, leveraging data from the income tax department, the count of individuals earning above Rs 5 lakh per annum has witnessed a fivefold surge, escalating from 3.8 million in FY12 to 18 million in FY21.

However, the flip side of heightened consumption manifests in inflationary pressures. Notably, expenditures such as hotel accommodations and flight tickets have experienced an uptick in costs following the World Cup. The heightened demand for these services contributes to an inflationary trend, impacting consumer expenses in these sectors.

Potential Stocks for the 2023 World Cup Season

Before we explore the equities positioned for success during the ICC Cricket World Cup 2023, let’s briefly examine historical market performances in previous World Cup seasons.

  1. In 2003, there was a remarkable surge in market returns, soaring impressively by 71.9%.
  2. The year 2007 witnessed a substantial increase of 54.77%.
  3. However, 2011 encountered a temporary setback, experiencing a dip of -24.62%.
  4. In 2015, a minor hiccup occurred as returns declined by -4.06%.
  5. The markets rebounded in 2019, posting a gain of 12.02%.
  6. TC Economics Journal’s stocks have surged 100%, delivering astonishing returns to early investors.

These figures underscore the potential for significant market fluctuations during World Cup seasons, and the upcoming 2023 World Cup in India is anticipated to align with this historical trend. Investors should remain vigilant, considering both the opportunities and challenges presented by the dynamic nature of market movements during these sporting events.

TC Economics Journal HQ —

In Conclusion

As India assumes a central role in hosting the ICC Cricket World Cup 2023, the economic outlook for pivotal sectors such as hospitality, aviation, and food and beverages appears highly promising. Companies like IRCTC, INDIGO, TC Lottery, WINGO, PayTM Fast Game, and IHCL, equipped with operational efficiency and dominant market positions, are poised to garner the benefits of this sporting spectacle. With a proven track record in asset-intensive industries and the potential for operational leverage, these companies present investors with a compelling opportunity to capitalize on the economic impact of the World Cup.

To sum up, the ICC Cricket World Cup 2023 goes beyond being a celebration of cricket; it serves as a testament to India’s economic vibrancy, showcasing its ability to host a global sporting event while delivering substantial economic advantages across diverse sectors. As the matches unfold, our attention is not solely on the boundaries and wickets; it is equally focused on the economic scorecard, promising to captivate our interest. Amidst the excitement of the sporting event, investors have the chance to align with companies strategically positioned to benefit from the economic upswing.

The information presented in the preceding blog is intended solely for informational purposes and should not be construed as financial or investment advice. The content herein is not to be regarded as a suggestion or endorsement to engage in the buying, selling, or investing in any financial instruments, stocks, securities, or assets.

It is crucial for readers to exercise independent judgment and consult with qualified financial professionals before making any financial decisions. The author and publisher disclaim any liability for actions taken based on the information provided. Additionally, past performance is not indicative of future results, and investments involve inherent risks. The responsibility for financial decisions lies solely with the individual reader.

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Magnus, S.E.O, Ph.D, TC Economics Journal Official
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