Formula 1 in India

The Rise and Fall of Formula 1 in India: Reasons Behind F1’s Abrupt Departure in 2014

Formula 1 in India began in 2011 with great zeal and fervor. The Buddh International Circuit (BIC) in Noida hosted the inaugural Indian Grand Prix. However, the event featured in F1 calendar for three years in a row and then came to an abrupt end despite having a two-year contract left.

Formula 1 in India

The Indian Grand Prix debut was on the cards as early as 2007 with reports of Kolkata and Coimbatore leading the race to host India’s first-ever F1 race. In years to follow, there were more cities as contenders to host the first Formula Race in India.

Finally, in 2011, Formula1 in India made its debut at the Buddh International Circuit (BIC) in Noida. The first F1 race in India was a major success with 95,000 spectators gracing the event and it looked like India is on the global motorsport map at last.

A staggering $400 million investment from the Jaypee Group ensured a state-of-the-art facility and circuit that will host world-class sporting events for numerous years to come.

List of Indian Grand Prix Winners

YearDriverConstructor
2011Sebastian VettelRed Bull Racing-Renault
2012Sebastian VettelRed Bull Racing-Renault
2013Sebastian VettelRed Bull Racing-Renault

Over the next three years, the challenges began to multiply and the event went off track for good.

Related Sports Legends: Icons Who Shaped the World of Sports

5 Reasons India’s Formula 1 Stopped

There was no one single reason for all the curtains to come but a plethora of factors that led to the fall of the Indian Grand Prix. We look at all the factors that played a role to rush and end India’s F1 journey.

  1. Economic Challenges

Formula 1 remains one of the most expensive sports. It requires substantial investment and related infra. India did make a world-class circuit but other financial aspects were not great. The organizers are always racing against economic and financial challenges. The Jaypee Group was heavily investment in the event. However, there was not much government backing to round up the costs associated and the Indian rupee’s depreciation further added to woes. With rising operational costs, expensive licenses and other costs, things were going south. The contribution from sponsorships and ticket sales was considerably less than the associated costs.

Related The Rise Of Kylian Mbappe: A Future Legend In The Making

  1. Government Policies

India’s F1 Dream relied heavily on the Indian government. And, their stance proved to be one of the biggest hurdles in the way. The Uttar Pradesh state government classified Formula 1 as an entertainment event rather than a sport. This meant that organizers were slapped with hefty entertainment taxes and duties on ticket sales. On top of that, the event lost its charm among the fans who had to bear the burden of high ticket prices due to the entertainment tax. Had the government backed the sport with tax benefits or subsidies, things would have been the opposite.

Indian F1 driver Karun Chandhok once made a point that visa issues and stringent regulations have been denting India’s reputation as a global event host.

“Just this week, I have had at least 50 different media people from around the world, and people from teams, engineers who have called me to say, ‘Hey, we are stuck in London without a visa, we can’t come to the race. When you have 700 world media coming to talk about your country and about your race – the only thing they are going to go back with is what a pain it was to get into your country. We need to iron out these things.”

  1. Limited Attendance and Fan Base

The first F1 race in India was a major hit, with 95,000 enthusiastic fans attending the event. The attendance at BIC should have increased the subsequent year but the spectator numbers dropped to 65,000 by 2012 and further down in 2013. The buzz around the event among fans on social media didn’t pick up either. The popularity of F1 in India was still nascent and it could have been one of the deterrents. 

  1. Rising Competition in the F1 Calendar

India had their opportunity. Since they didn’t grab it with both hands, there were other host countries that were waiting for their turn. The global F1 calendar is ever-expanding to several countries and markets. After accounting for all the factors, the scheduling changes were inevitable and the Indian Grand Prix in 2014 was dropped from the calendar in 2024. 

  1. Cricket’s Dominance and Sponsor Reluctance

India is a cricket-crazy nation. Fans, sponsorships, and interests are all vested in beloved sport. For F1 it became difficult since the sport requires major investment and there is no clarity of short-term financial returns. The returns for stakeholders were not as attractive, and nowhere close to what cricket is offering. The go-to sport cricket and its proposition for investors, sponsors, and stakeholders were high to ignore. They could not look any further than cricket and dropping sponsorships in favor of cricket.

India’s infrastructure was never the question but a global motorsports platform has to offer more for the stakeholders. The bureaucratic hurdles, lack of government support, and logistical challenges undermined a big opportunity India had. 

Hope we get to see F1 making its re-entry on Indian shores soon!

Follow us on FacebookInstagram and LinkedIn.

Share this content:

Post Comment