EFFECTS OF IPL ON INDIAN ECONOMY

IPL-HISTORICAL BACKGROUND

IPL is a domestic cricket league , annual twenty20 cricket tournament in India. Organized by IPL
governing council, under the supervision of Board of Cricket control India(BCCI). It is the most watched
twenty20 tournament.

IPL was established in 2008 and now consists 10 teams in 10 different cities. The inaugural season was
won by Rajasthan Royals and a total of 16 seasons have been conducted. The latest winner is Chennai
Super Kings as of 2023.
Up until 2021, the IPL tournament involved each team playing every other team twice in a home-
and-away, double round-robin format.[14][15] From 2022, the ten teams were divided into two groups of
five.

In the group stage, each team plays 14 games facing the other four teams in their group two times
each (one home and one away game), four teams in the other group once, and the remaining team
two times. Altogether, thirteen teams have played in the past ten seasons of the IPL tournament. [20][21]
[22]
Of these, five teams are no longer a part of the tournament. [23] In 2011, BCCI terminated
the franchise of Kochi Tuskers Kerala for contractual breach.[24] Similarly, BCCI terminated the
franchise of Deccan Chargers in 2012 for backing off from its commitments.[25] In 2013, Pune
Warriors India exited IPL after it had a franchise valuation disagreement with BCCI.

IPL AND PROMOTION

The advertising blend business technique comprises of the Service, Cost, Place and Promotion
which the advertisers use in showcasing. The 4 P recognizes battle techniques and strategies to
fulfill the wants and request of the buyers. Nowadays, the union of cricket and TV has end up
being the greatest business stage for sports. The media position was significant while
displaying huge scope TV concurrences with sports, for example, baseball, b-ball, badminton.
Through financing and crew promoting, the game raises extensive benefits from the news
station and the establishments. The IPL's principle salary source is the selling of TV rights,
publicizing, and entryway receipts. The opposition sought after various marking and
correspondence activities that have been well known in the previous not many years. Open
plans and advertising for the opposition was planned and actualized by Ogilvy and Mather. The
opposition allows the advertisers to showcase their item or items on India's biggest TV station.
The opposition was advertised for target showcase by BCCI and different accomplices as a type
of sports and diversion field. The fast twenty overs style focuses on the advertisers' young and
family showcase, which is an extra advantage. As a feature of the marking exercise, IPL's
supporters and showcasing directors have packaged the entire contribution in such a basic
manner, that even outrages and features assist advertisers with drawing watchers for their
products. Set Max, the official telecom partner, has likewise thought of essential IPL limited
time advancements to create buzz and to draw viewership. From "Manoranjan ka Baap,"
"Cricket ka Karmayudh" to "Ek India Happy Wala" all these limited time crusades were
successful to bring out the expectation and produce eagerness for the competition among the
cricketing fans. Both of these correspondence battles and effective limited time programs have
empowered the occasion accomplish an overall standard crowd and a high brand mindfulness.
India's development and improvement regularly support competitions, for example, the IPL to
extend and be fuelled by crowd and brand sponsorships.
IPL MAIN METHODS OF ADVERTISING
Product – Indian Premier League, Lalit Modi's brainchild is today one of the world's
best brandishing property. Begun in 2008, after India's effective South Africa t20
World Cup winning effort has an extraordinary cricket and diversion twisted. Focused
on the corporate procedure standards, the administration business brings up the
different bearings. Regarding IPL as an item, the consideration of the advertisers,
brands and fan base will decide the degree of rivalry in the group. This is centered
around BCCI's job in keeping up the level of intensity that fulfills the market and
characterizes the association's drawn out risk. The level of contention depends on the
measure of clubs in the game, the game organization division or a top level division-
number of matches in a season, season finish, end of the season games and rivalries,
wage limits and the free office

Cost – Price is a fundamental selling technique for an assortment of

significant reasons, it is trying to decide an organization until buying its cost
may fill in as a proportion of value and imaginative evaluating may take into
account smooth interest. IPL's market system is a noteworthy wellspring of
income age for Cricket Board of Control in India ( BCCI). The two-month long
competition would help BCCI gain salary of around 2 billion US dollars over a
range of five to ten years, as per studies and studies.

Spot – Although this competition is held inside India, IPL is a critical

contributing element to the Indian cricket globalization. The opposition is a fan
fragment and national Television watcher bargain. It creates a unique draw
that incorporates huge pieces of Europe, Africa, the United States, Caribbean
countries and numerous zones of Asia. The essential clarification for IPL's fame
is because of the procedure of geology and innovation.

Advancement – It is trying to talk with respect to the impalpable component of any

great or administration. Advancement is the association's most significant segment
and has figured out how to chat with the organization to the country. To promote the
organization to the objective purchaser, the methods for commercial, exposure,
advertising and online long range informal communication can be grasped. Through
selecting proficient marking organizations to assist them with arranging the occasion,
the two-month long competition uses expound promoting strategies.

IMPACT OF IPL ON INDIAN ECONOMY

Generates New Jobs: The Indian Premier League generates job employment at a large scale
and effectively leads to India’s economic development. The employment is generated from
companies, their stakeholders, sports personalities, emerging athletes, etc. The report
submitted by the UN General Assembly for Peace and Development highlighted an economic
value of $3.2 billion created by IPL. The market for sports equipment and gadgets has also
witnessed a huge rise, with market size increasing to 40 billion Indian rupees.

1. Significant rise in GDP: IPL has been contributing massive profits to the GDP of
India. Huge scale branding, crazy fan support, and tremendous fan following worldwide
have led to a constant rise in the GDP. As per KPMG’s survey report, the 60-day
tournament yielded INR 11.5 billion(USD 182 million). BCCI had appointed the KPMG
sports advisory group to undertake this survey.

Boosts Tourism: Apart from 32 international players, there is a massive boost in the revenue
generated from international tourism. As per one of the most reputed travel companies Cox &
Kings, the IPL led to a whopping 30% increase in travel revenue. People from all over the world
travel to different states and cities of India during the season. India has been ranked 11th in the
Asia Pacific region and 34thin the list of most attractive travel destinations worldwide. This
ranking has been done in a report by the World Economic Forum.
Cultural Diversity: Social media frenzy during the IPL season is very common. A lot of
activities occur during the tournament as people from all over the world visit India. There are a
lot of after-parties and events held in the different cities hosting the twenty-over matches.
Foreign tourists from several countries such as Bangladesh, Australia, Canada, Sri Lanka,
England, etc., arrive and try to make the most of the celebratory season.
Hotel & Restaurant Business: During the IPL season, there’s a surge in travel business and
accommodation business, and eating ventures. The number of check-ins increases during the
60-day tournament, and travellers from worldwide love to experiment with different Indian
cuisines.
Increase in Tax Contribution: Before the onset of IPL, BCCI was considered a charitable
organization, thus was never asked to pay taxes. IPL had been termed as a commercial activity
from the time of its commencement; therefore, BCCI was required to pay tax contributions,
resulting in an increased amount of revenue for the government. BCCI has produced a
considerable amount of taxes since the commencement of the cricket contest.