India needs to put more effort into developing a fully-fledged sports economy — a potentially lucrative market which is largely unexploited in the country, analysts say.
“Lack of sports culture and non-recognition of sports as an industry in India are among the major challenges for the business of sports in the country,” according to a recent report by KPMG and the Confederation of Indian Industry (CII). “It has high revenue-generating potential and the government and private sector should synergise their efforts to establish a flourishing sports industry in India.”
The report says that the global sports sector is estimated to be worth up to US$600 billion.
“In fact, sport as an industry contributes to about 1 to 5 per cent to the GDPs of various countries,” it adds. “However, a lack of sports culture in India has deferred the formation of a similar industry in the country despite growing awareness, interest and successes in various non-cricket sports.”
This lack of industry status has also held back corporate investment in sports in India. With a young population and rising disposable income, there is enormous potential for revenues to be generated by sports in India.
Shirish Kulkarni, the president of the Liverpool FC International Football Academy, DSK Shivajians, a residential initiative set to launch in Pune this summer, believes that there is scope for commercial success in India beyond cricket, especially if sports infrastructure improves.
“Sports as a serious business in India received major traction with the launch of the Indian Premier League,” Mr Kulkarni says.
“The already cash-rich sport of cricket received an influx of investment, excitement and cult following, including a fan base of women, with the Twenty20 format. While India continues to remain untapped for other sports despite immense potential, recent years have witnessed a number of developments indicating that other sports are being treated as serious propositions.”
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