India Vs Australia: How ICC World Cup 2023 Will Boost India's Economy For FY24?

The final moment has arrived and Indian citizens have high hopes of a win at home. If the Indian cricket team wins, it will be their third World Cup since the inception of the tournament. On Sunday, at around 2 pm, India will face Australia which has won the most world cups so far. It's a special moment, and people from all cultures in India have come together in unity to support their team. It's a frenzied moment. But did you know that the current World Cup will also boost India's economy for FY24? Let's find out how!

The India versus Australia match is taking place at the Narendra Modi Stadium in Ahmedabad. In the latest development, Australia won the toss and decided to bowl first. Over 1,00,000 people are likely to attend the match.

Here's how ICC WorldCup 2023 will drive the economy:

According to the BOB Economics report earlier in November, there are several facts which need to be considered here. The event is expected to draw people from all over the world, and hence ticket sales will be a huge source of revenue. Apart from this, the aviation and transport industry will also benefit. The hospitality sector comprising hotels, the food industry and delivery services will also see a brisk increase in their businesses. There is also the case for sentimental purchases of merchandise.

This is particularly important as the World Cup has also coincided with the peak festive season in India which suggests that retail demand may see a leg-up.

First and foremost, ticket sales will be an important item of spending. BOB's note explained that based on the stadium capacity and charges for each ticket, they expect the total ticket sales to the tune of Rs 1,600-2,200 crores. This is based on the assumption of varied attendance for each match with all India games registering 100% attendance.

Apart from this, the total viewership for the tournament (through mediums such as TV, OTT etc.) is expected to be far larger than last time (552mn-Indian viewers for the 2019 World Cup-BARC data), it said.

BOB believes that the sponsorship/TV rights for this grand event can account for another around Rs 10,500-12,000 crores on a conservative basis.

The event usually attracts foreign tourists and BOB expects the spending on hotel, food, and travel, including shopping to add Rs 450-600 crores, assuming 1,000 tourists are coming for each of the matches. However, it
does not see an upside to this number and the number of 1,000 has been taken to be very conservative.

Similarly, domestic tourists (travelling to venues) are expected to be spending Rs 150-250 crores for interstate travel, hotels and food. Moreover, people will also be travelling in the same city to catch a game and spend on fuel costs along with expenses for food. This is estimated to be Rs 300-500 crores, it said.

Further, for screenings of these matches at restaurants, cafes and home viewers ordering food through apps will add a sum of Rs 4,000-5,000 crores during the entire duration of the event, BOB added.

Accordingly, based on this, BOB believes that the total expenditure during the World Cup is expected to be in the range of Rs. 18,000-22,000 crores. It added, "The success of hosting this mammoth event will provide a strong boost to the overall GDP for FY24."

Apart from this, it added, "the government is also likely to mop up its tax collections through ticket sales, GST on hotels, restaurants and food delivery etc. 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."

Hence, the current World Cup has the potential to boost India's GDP, more so because it coincides with the festive season. BOB's note added, "Consumption sector, particularly services consumption is likely to receive the maximum boost. Hospitality and tourism sector are likely to benefit the most."

In terms of impact on GDP, BOB said, "With an estimated additional output of Rs 18,000-22,000 crores attributed to the World Cup, the impact on gross value added is estimated to be around Rs 7,000-8,000 crores. This will be incremental GDP at the primary stage of expense."

ICC Cricket said, "There are a host of records and milestones set to be broken during the ICC Men's Cricket World Cup final and India get the chance to create history if they can defeat Australia and claim a third title."

As per ICC's update, if India does prevail and add another trophy to the World Cup titles they won in 1983 and 2011 they will become the first nation in the history of the Men's Cricket World Cup to have won the tournament twice at home soil after they famously defeated Sri Lanka in Mumbai 12 years ago.

Meanwhile, if Australia wins yet another World Cup trophy - having previously tasted success in 1987, 1999, 2003, 2007 and 2015 - they will have won six World Cup titles, which is easily the most of any country.