REPORT

Chess, a game of strategic mastery, has transcended its origins to become a significant
contributor to both the Indian and global economies. In this report, we delve into the various
facets of chess's economic impact, analyzing statistics and facts to understand its influence on
different sectors.

**1. Historical Context and Cultural Significance**

Chess originated in India over 1500 years ago and holds deep cultural significance in the
country. Its evolution from a pastime to a revered intellectual pursuit has shaped India's cultural
landscape. The game's influence extends beyond entertainment, fostering critical thinking and
strategic skills among players.

**2. Economic Impact of Offline Chess Tournaments**

Offline chess tournaments play a pivotal role in driving economic activity. Events such as the
National Chess Championship and the Chennai Open attract participants, sponsors, and
spectators, generating substantial revenue streams. According to the All India Chess
Federation, the prize money for the National Chess Championship has increased by 30% over
the past five years, reaching a total of ₹1 crore (approximately $134,000) in 2023.

Moreover, these tournaments stimulate tourism and hospitality industries in host cities, creating
employment opportunities and boosting local economies. For instance, the Chennai Open, held
annually since 2002, has contributed an estimated ₹50 crore (approximately $6.7 million) to the
city's economy through hotel bookings, transportation, and related services.

Globally, flagship tournaments like the Chess World Cup and the Candidates Tournament attract
top players and garner significant media attention. According to a report by Ernst & Young, the
economic impact of major chess events worldwide exceeds $1 billion annually, driven by
sponsorships, media rights, and tourism revenue.

**3. Rise of Online Chess Platforms**

The advent of online chess platforms has democratized access to the game, leading to a surge
in popularity worldwide. Platforms such as Chess.com and Lichess.org boast millions of active
users, offering a range of features including tutorials, puzzles, and competitive gameplay.

Statistics from Chess.com reveal a significant increase in user engagement, with the platform's
active user base growing by 40% year-on-year. Moreover, the COVID-19 pandemic accelerated
the adoption of online chess, with a 300% increase in new users during lockdown periods.

These platforms generate revenue through subscription models, advertising, and merchandise
sales. Chess.com, for example, offers premium memberships starting from $5 per month,
contributing to its annual revenue of over $20 million. These segments, now being
commoditized, have started offering paid programs with benefits such as recorded and live
classes by Grandmasters, participation in premium tournaments, unlimited number of puzzles,
top-notch analysers and so on. Out of the 109 participants, 98 have not purchased the premium
subscriptions to any online chess-platforms, while 11 of them have

**4. Economic Opportunities and Challenges**

The growing popularity of chess presents a multitude of economic opportunities, but also poses
challenges. On the positive side, the demand for coaching services, merchandise, and event
management has created a thriving ecosystem around the game. In India, initiatives such as the
Chess in Schools program aim to integrate chess into the curriculum, fostering cognitive skills
and enhancing educational outcomes..

While the material required in chess is minimal, with the basic requirements being just a chess
board and pieces, as one begins to advance in the game, it slowly starts emptying pockets. With
new FIDE-recognised chess clocks being introduced often, and the updating pre-requisites to
gain titles of International Master, Grandmaster etc, the game is surely expensive in the
long-run. Hence, for those who play at a laymen level, chess is one of the cheapest pastimes
available, but for those going pro, it is definitely a cash-consuming sport. 82.8% of the
participants of the survey think of chess as an inexpensive game, while 17.2% find it expensive.

However, the commercialization of chess raises concerns about its cultural integrity and
accessibility. As the game becomes more commodified, there is a risk of excluding marginalized
communities and perpetuating inequalities. Efforts to address these challenges include
promoting diversity and inclusion in chess, as well as expanding access to resources and
opportunities for underprivileged groups.

**5. Conclusion**

Chess's economic impact is multifaceted, spanning offline tournaments, online platforms, and
associated industries. In India and globally, the game generates significant revenue streams,
stimulates tourism, and fosters intellectual engagement. As chess continues to evolve and
adapt to the digital age, its economic significance is likely to grow, making it a strategic asset for
economic development and cultural exchange.

IMPACT ON POPULATION

**Introduction**
Chess, renowned for its intellectual challenge and strategic depth, exerts a profound influence
on individuals and communities worldwide. This report examines the societal impact of chess,
encompassing both online and in-person engagement, and explores how the game fosters
personal development, social cohesion, and community enrichment.

**1. Cognitive Benefits and Personal Development**

Chess is renowned for its cognitive benefits, stimulating critical thinking, problem-solving skills,
and concentration. Research has shown that regular engagement with chess can enhance
cognitive abilities, particularly in children and adolescents. The game's intricate rules and
tactical complexities encourage players to think ahead, analyze patterns, and make informed
decisions, thus sharpening their mental faculties.

Chess, a sport once sidelined for other popular sports and activities such as football and
basketball, has seen a skyrocketing number of chess players, specially upon the rise of
COVID-19. In a survey conducted by me, 53.2% play chess, either professionally or casually,
while 46.8% do not play chess, crafting a roughly equivalent division between the two sides.

A question about the frequency with which players play chess showcases the range at which
individuals pursue the game, with many playing everyday while some playing just a couple of
times a month.

Chess is one of the only sports which is open to people of all ages. According to the survey
conducted by me, a rough distribution is observed in the ages of chess players, both
professionals and amateurs, as shown in the pie chart.

Chess, while a game inducing strenuous brain activity, can be adopted both as a hobby or a
serious sport. Out of the 53.2% chess players participating, 23.1% of the participants either
have a chess coach or play professionally, while the other 76.9% plays chess simply as a
past-time activity, proving that the game can be incorporated into one’s life in various ways.

Chess, being a board game, is available both on online and offline platforms. According to the
survey, 65.5% of participants prefer playing offline/in-person chess while 34.5% prefer online
platforms.

In-person chess clubs and tournaments offer a social setting for players to interact, compete,
and learn from one another. These gatherings promote camaraderie, sportsmanship, and
mutual respect among participants, fostering personal growth and self-confidence. In the survey,
27.6% of people participate in offline chess tournaments while 72.4% do not, and instead
participate in online chess tournaments held on various different platforms.

Online platforms such as Chess.com, Lichess.org, FIDE Online Arena, Chess24.com and
ChessBase Online offer a convenient avenue for individuals to engage with the game,
regardless of geographical constraints or skill levels. Even Though these platforms have existed
since decades, their popularity soared during the pandemic as we were locked in our houses
and in-person chess wasn’t possible. The percentage breakdown of each of the online platforms
as seen in the survey is given in the bar chart on the left, where Chess. Com takes the lead with
Lichess coming in second. Through features like tutorials, puzzles, and interactive gameplay,
these platforms provide a dynamic learning environment that facilitates skill development and
fosters a sense of achievement.

**2. Community Engagement and Social Cohesion**

Chess serves as a catalyst for community engagement, bringing together individuals from
diverse backgrounds and fostering social cohesion. In schools, chess clubs promote inclusivity
and academic achievement, providing a platform for students to develop friendships and
collaborate on strategic challenges.

Local chess tournaments and events serve as focal points for community interaction, attracting
players of all ages and skill levels. These gatherings create opportunities for networking, cultural
exchange, and intergenerational bonding, strengthening social ties and nurturing a sense of
belonging.

Online chess communities offer a virtual space for players to connect, share insights, and
collaborate on strategies. Through forums, chat rooms, and social media platforms, individuals
can engage with like-minded enthusiasts from around the globe, transcending geographical
barriers and cultural boundaries.

**3. Educational Impact and Lifelong Learning**

Chess has gained recognition for its educational value, with numerous studies highlighting its
positive impact on academic performance and cognitive development. In schools, integrating
chess into the curriculum has been shown to improve students' problem-solving abilities,
mathematical skills, and spatial reasoning.

Online chess platforms offer educational resources and tutorials designed to support learning
objectives and facilitate skill acquisition. Through interactive lessons, puzzles, and practice
games, players can enhance their understanding of chess principles and refine their playing
techniques.

In-person chess workshops and seminars provide opportunities for lifelong learning and skills
enhancement. These events feature expert instructors, master classes, and interactive
demonstrations, catering to players of all ages and proficiency levels.

**Conclusion**

Chess serves as a powerful vehicle for personal growth, community engagement, and lifelong
learning. Whether played online or in person, the game fosters cognitive development, social
cohesion, and educational enrichment. By promoting inclusivity, collaboration, and intellectual
exploration, chess enriches the lives of individuals and strengthens the fabric of communities
worldwide.

Let us now focusaon those who neither play chess professionally, nor casually, and their
experience living in a world at the peak of its popularity in chess. Out of the 46.8% which does
not play chess, 41.2% of them still hear about chess news and information related to the game,
while 31.4% of them do not and 27.5% are not sure. Due to the aforementioned surge in the
popularity of the game, 23.5% of the part takers sometimes feel peer-pressured into feeling the
need to play chess in order to keep up with the others, while 54.9% do not feel like falsely
claiming to like the game, and 21.6% are not sure. And finally, discussing the future of the game
of chess, 17.6% of participants will start playing chess in the coming future, while 27.5% will not,
and the majority of 54.9% is not sure.