Bank of Baroda economists predicted on Thursday that the forthcoming Cricket World Cup in India, the first to be held in the country since 2011, will stimulate economic growth. They suggested that the travel, hospitality, and retail sectors are set to benefit significantly from this event.
The economists expect that the viewership for the tournament will exceed the 552 million recorded in 2019, which will subsequently increase TV rights and sponsorship revenue. However, they also warned that this surge in economic activity might lead to a slight inflation rise, between 0.15% and 0.25%.
Despite this potential inflationary effect, analysts believe that enhanced tax collections and goods and services taxes generated by the Cricket World Cup will provide additional fiscal space. The increase in viewership and subsequent revenue growth is expected to offset any negative impacts caused by the slight uptick in inflation.
The Cricket World Cup's return to India after a twelve-year hiatus is anticipated to have a broad positive impact on various sectors of the economy. The increased viewership and consequent rise in TV rights and sponsorship revenue will not only benefit related industries but also contribute to overall national economic growth.
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