The Indian Premier League (IPL) is the world’s most popular and financially successful domestic cricket league, and according to recent reports, the brand value of the IPL is worth just over $11 billion (approximately ₹90,038 crore).

On this page, we will be taking a closer look at the impact of cricket on the Indian economy and how the revenue generated from the sport contributes towards sectors such as advertising, tourism, merchandise sales, and job opportunities being created, to name a few.

How does cricket impact the Indian economy?

The economic impact of cricket on the Indian economy is hugely significant.

According to the official governing body of cricket in India, the BCCI (Board of Control for Cricket in India), the eighth season of the Indian Premier League (IPL 2015) contributed somewhere in the region of $140 million (₹1,150 crore) to India’s GDP, and a similar amount is contributed annually.

The 2023 ICC Men’s Cricket World Cup in India also earned the host nation over $2.5 billion.

The continued growth of cricket in India in terms of active participation and viewership has led to huge investments and improved infrastructure from the grassroots level to the IPL.

Across the country, cricket training academies and facilities have popped up, and there are now more cricket stadiums than ever. All of this has helped promote tourism to India, create jobs, increase ticket sales and the sale of merchandise, and strengthen economic growth in India.

How has cricket impacted tourism in India?

Cricket has played a huge role in increasing tourism in India. People in India are more willing to travel away to watch their favourite IPL side when playing against their opponents. During their stay, they spend money on accommodation, travel, food & drinks, and merchandise.

Not only does cricket increase domestic tourism, but it also boosts international tourism. When India hosted the 2023 Cricket World Cup, people travelled from across the world to India to support their teams, which generated millions for host cities and the Indian economy.

(Image source: Pixabay)

There was an increase in demand for airline tickets, hotel bookings, transportation, and amenities, which helped generate significant revenue for India’s economy. Many businesses increased their prices for the duration of the tournament to generate even more revenue.

What about advertising and sponsorship?

In addition to boosting domestic tourism and increasing the number of foreigners who travel to India to watch cricket, the sport also provides significant advertising opportunities.

Advertising sales go through the roof during an average IPL season, with vast amounts being paid by companies to advertise their brands, products, and services at sold-out stadiums across India.

When people attend cricket matches, they often spend money on merchandise from the stadium’s official club shops. Cricket replica jerseys are among the biggest sellers, especially those emblazoned with the names of today’s biggest stars.

The advertising also leads to increased ticket sales and more people spending money on food and drinks as they watch the action unfold. The money the IPL franchises and the league make from sponsorship deals is also at an all-time high.

Some of the other popular cricket merchandise that gets sold to help boost local and national economies are cricket equipment, hats/caps, cricket equipment, posters, programs and brochures, and all other cricket-related items.

However, one of the most significant sources of income stems from domestic and international television broadcasting rights deals and the money generated by television advertising campaigns. In short, cricket is a huge win-win for everyone involved and a massive contributor to the Indian economy.

Today’s biggest sports broadcasters and streaming service providers, such as Disney Star and Viacom18, pay staggering amounts to secure the exclusive rights to broadcast certain matches.

The rights for IPL matches are generally auctioned by the BCCI, which can result in incredible sums of money being paid by the winning bidders.

Foreign and domestic companies also pay significant sums to sponsor IPL cricket franchises and sponsor players and tournaments to increase brand awareness. It helps bolster the strength of the entire cricket ecosystem.

Some of cricket’s most marketable players with mass global followings, to name a few, are the following:

• Virat Kohli
• Rohit Sharma
• MS Dhoni
• Rahul Dravid

The success of these players on the field and their presence off the field on social media platforms like X (formerly Twitter), Facebook, TikTok, Instagram, Snapchat, YouTube, and others translates to the success of a sponsorship brand and its sales.

The kind of exposure these players have is why these companies are willing to pay so much to sponsor them to have their brands pushed by India’s biggest cricket stars.

The most notable cricket betting companies also generate millions in revenue from people placing wagers on licensed and regulated iGaming sites. Today’s most trusted cricket betting sites in India are known for having some of the industry’s most competitively-priced cricket betting odds.

How does cricket lead to job creation?

Cricket also brings many job opportunities, some of which are only temporary but can provide regular cash for several months or years at a time.

In recent years, for example, the IPL cricket stadiums in each of the ten host cities have had various upgrades/renovations, employing local Indian companies before outsourcing to other companies.

(Image source: Pixabay)

Continued maintenance is required at each of these venues, which helps thousands of local Indians in various roles earn a decent living.

Some of the other job opportunities created by cricket include production crews, commentators, coaching staff, caterers, administrators, ground staff, and medics, to name a few.

Final thoughts

As you can see, cricket in India is more than just a game. The entire ecosystem, from the grassroots level to the IPL, plays a considerable role in the continual flow of revenue. It influences various key sectors and helps bolster the Indian economy.

Experts predict that cricket in India will continue to thrive over the foreseeable future, generating more revenue year-on-year.

As long as the sport can continue to market itself in such a positive way and remain the world’s number one domestic cricket league, it will significantly impact India’s economy.