Formula 1 (F1) is the pinnacle of global motorsport, featuring high-speed races across iconic circuits worldwide. Governed by the Fédération Internationale de l’Automobile (FIA), F1 combines cutting-edge technology, elite driver skill and massive commercial appeal. Various Automobile Manufacturers / Constructors and skilled racers compete for the Championship, drawing millions of fans and generating billions in revenue. In 2024, F1 marked the fourth consecutive year of global success with annual revenue reaching $3.65 billion.
India’s journey with F1 began with its ambitious plan to host a Grand Prix. Discussions began as early as 1997. However, it wasn’t until October 2011 that India finally made its mark on the F1 calendar by hosting its first-ever Formula 1 race at the Buddh International Circuit (BIC) in Greater Noida. But its success was short-lived, with the debut year witnessing a whopping crowd of 95,000, plummeting to 60,000 in 2013.
With F1 demand increasing ever since COVID-19, partly due to Netflix’s series – Drive to Survive(and its recently premiered Season 7 on March 7, 2025), not to mention the upcoming season opener on 14th March 2025, there is a question that needs to be addressed: Will India ever witness Indian Grand Prix 2.0? Is it a ‘smooth operation’?
India’s Formula 1 Setback:
There cannot be a straightforward answer to whether India can host another Grand Prix without a thorough analysis of the factors that led to its initial downfall. The decline was not merely a consequence of shrinking audiences but was deeply rooted in poor planning and systemic issues.
- Costly Venture
One of the most significant challenges faced by the IGP was its unsustainable cost and revenue structure which added to its discontinuation after just three years.
The hosting rights for the event were secured by Jaypee Sports International Limited (JPSI), a subsidiary of the Jaypee Group which signed two contracts with Formula One World Championship Limited (FOWC), a UK-based company. The first was a $40 million Race Promotion Contract which covered hosting fees, and the second was a $1 million Artwork License Agreement allowing JPSI to use FOWC’s intellectual property.
JSPI was also responsible for constructing the Buddh International Circuit which was completed at an estimated cost of $400 million. Operational costs, including logistics, security and maintenance further added to the financial burden.
To offset these costs, JSPI planned to generate revenue through several channels with ticket sales being the primary source. Ticket prices were ranging from INR 2500 to INR 50,000 with corporate boxes for INR 35L to INR 1Cr set at prime location at the circuit with club hospitality and pit tours. With limited sponsorship, as F1 was considered a niche sport and brands were hesitant to invest heavily, Jaypee struggled to break even, exacerbating its financial crisis.
- Lack of proper Infrastructure
While the Buddh circuit was praised for both its design and technical aspects, there were significant criticisms regarding the execution and readiness of the venue. A report from the The Guardian highlighted that event was a “dusty, dirty and chaotic affair with finishing touches being completed on the morning of the inaugural race in 2011”. Teams faced logistical challenges such as unreliable electricity, faculty plumbing and a dusty environment. Mechanics reported struggling with power outages during preparation, which impacted, even if not significantly, the race operations.
- Tax Burden
Further complicating the matter were the government tax policies and legal interpretations based on the government’s classification of Formula 1 as “entertainment” rather than a sport.
This classification led to a substantial tax burden, with race fees subjected to a steep 28% tax and the government’s refusal to grant tax exemptions on imported equipment necessary for hosting the event. This escalated the costs significantly for both JPSI and Formula One Management (FOM).
Info Corner: In a landmark ruling, the Supreme Court of India determined that FOWC, as a non-resident entity, possessed a Permanent Establishment (PE) in India due to its operational activities at Buddh International Circuit during the IGP, which meant that FOWC was now liable for to pay taxes in India on the business income attributable to PE, irrespective of the short duration of the event.
- Absence of Shared Costs
Unlike other nations that host Formula 1 events, India lacked a public-private partnership model to share the financial burden.
For instance, the Singaporean government co-funded 60% of approved costs including infrastructure, logistics and licensing fee. Followed by Abu Dhabi Grand Prix where the government funding for infrastructure, promotional events, security are part of its strategy to position it as a global sport destination. In fact, one of the most expensive circuits of F1, Bahrain Grand Prix is substantially funded by its government. Similarly, in Azerbaijan, the state budget is heavily subsidized by the government.
In stark contrast, JPSI bore the entire financial responsibility without any significant government support. This coupled with declining ticket sales, insufficient sponsorship revenue and heavy tax impositions led to unsustainable losses.
It was precisely due to these reasons that Formula 1, despite its rising enthusiasm in India throughout the mid-2000s which laid the groundwork for the Indian Grand Prix (IGP) in 2011, ultimately failed as an event. The steep decline in fan engagement and viewership after the event led to India’s exit from the F1 calendar in 2013.
Status Quo: The current situation, as it stands.
Notwithstanding the failure of Formula 1 in India, the demand from hardcore F1 fans persisted, contributing to the steady revival of motorsport popularity by creating accessible Karting experiences and eventually, the Indian Racing League (IRL).
Info Corner: IRL organised by Racing Promotions Pvt. Ltd., introduced Formula 4 (F4) championships and plans to launch F3 by 2026.
The popularity is further fueled by the remarkable achievements of Indian Racers on the global stage. Jehan Daruvala, for instance became a pioneering figure in Indian motorsport by becoming the first Indian to win a Formula 2 race at the 2020 Sakhir Grand Prix, followed by another victory in Monza Feature Race & a third-place finish in the 2019 FIA Formula 3 Championship.
Alongside him, is Kush Maini, who cemented his legacy by becoming the first Indian driver to win an FIA Constructors’ title with his team, soon followed by his maiden Formula 2 victory at the 2024 Hungary Feature Race. Recently, Maini has been signed by one of the most prestigious French F2 team DAMS Lucas Oil for the 2025 FIA Formula 2 season.
With respect to Karting, many companies have created platforms for young talent and common fans to experience the sport. Among these, JK Tyre has played a pivotal role in promoting karting since 1997 and launching JK Tyre National Karting Experience in 2005, winners of which even represent India at Rotax Max World Finals. Similarly, SODIKART , through its partnership with CSML, has introduced high-quality karting equipment and experiences across India.
Tracks like Smash in Mumbai offer rooftop karting experiences for prices ranging from INR 300 to INR 1000, while Hyderabad boasts unique locations near airport runways. Bengaluru’s Torq03, which employs FIA-approved Xtreme barriers and an automated race control system aligning with International standards shows commitment towards making the motorsport experience a fun and safe ride for fans and future racers. Karting’s expansion into smaller cities can be witnessed by high-quality tracks built in Pune and Gurugram, making motorsport accessible to the masses and unearthing hidden talent that might otherwise have gone unnoticed.
The evidence points to one undeniable fact: F1 is gaining momentum in India, slowly & steadily. It is against this backdrop that we need to examine its standing within the country’s diverse sports culture.
Cricket, Football & F1, the pecking order:
India’s sporting landscape is dominated by Cricket with a massive viewership of over 600 million, (the Indian Premier League (IPL) alone attracting more than 400 million viewers), with Football emerging as a second strong contender with roughly half the audience size accounting for 300 million views. Formula 1, while progressing steadily, with 97 million viewers in the previous year (2024), of which 40 percent were female audience members, still carries the tag of a niche sport.
One of the key factors behind Cricket’s overwhelming popularity is its affordability. Ticket prices for domestic matches start as low as INR 500, making live experience accessible for the mass. Even premium seats rarely exceed INR 25,000, which is close to F1’s entry-level pricing. Low-cost or free streaming options, such as hotstar, have made the sport a mass phenomenon.
Similarly, Football has seen growing engagement, with fans tuning in for major events like the FIFA World Cup and UEFA Champions League (UCL). Events like the FIFA U-17 hosted by India offered tickets at discounted rates of INR 300 (minimum), increasing engagement.
An article from National Herald, precisely points out the sentiment behind the viewership and links it to the Cricket’s deep integration into Indian culture. The sport has historically been associated with national pride, especially after iconic moments like India’s victory in the 1983 Cricket World Cup. The introduction of formats like IPL has further added to the regional appeal.
These statistics and perspectives indicate, to a certain extent, the reasons why F1 is lagging behind.
Exploring the Challenges: What exactly is holding F1 back in India?
Keeping aside the fact that Formula 1 is inherently a niche sport in India, there are still several other reasons that can be attributed to its slow progress in gaining widespread attention.
In India, F1 TV Pro remains the primary platform for watching live F1 races in India, priced at INR 249/month or INR 2,999/ for the entire season compared to free or low-cost options for Cricket and Football on platforms like Disney+Hotstar, JioCinema or SonyLiv. Similarly, ticket prices for live F1 events, ranging from INR 2500 to INR 50,000 are far higher than those for Cricket matches (INR 500 to INR 25,00) or Football games (INR 200 – INR 2000).
Merchandise is another appealing factor in the growing popularity of sports. While official Football and Formula 1 merchandise may be priced comparably, the gap widens in the local market. Football benefits from local tie-ups with brands like Adidas, offering merch starting at just Rs.999. Formula 1, however, lacks such partnerships, leaving its merch priced as a premium product, starting at Rs.2,500. This stark contrast, especially when compared with Cricket merch, typically priced at just Rs.799, highlights the accessibility gap, limiting F1’s potential to connect to a wider audience.
All of these factors can be considered secondary, when compared to the real issue i.e. the enjoyment of the sport by an average fan.
F1 by its nature, cannot be played or experienced everyday by an average fan. It requires specialised vehicles with advanced engineering, making it inaccessible for casual participation. This stands in sharp contrast to Cricket and Football, which thrive on their simplicity and affordability, with equipment costing as low as INR 200.
In summary, while there are factors supporting the growth of F1in India (like karting, persistent demand via interest in the races, etc.) its presence and popularity suffers from significant drawbacks like limited accessibility, high costs and dedicated tracks, making it an activity dedicated to a niche audience, failing to attract a larger crowd.
Verdict: Comeback in India?
There still remains a fleeting hope in F1’s revival to India with growing engagement, if it adopts a multi-faceted approach tailored to the Indian market.
First and foremost, affordability and accessibility, as they are interlinked. Streaming platforms like F1TV remain expensive sources as compared to other streaming platforms used for watching Cricket and Football. Partnering with local platforms like JioCinema and SonyLiv to stream F1 races, alongside F2 and F3, could enhance visibility and regional appeal. Since F2 and F3, features Indian racers like Jehan Daruvala and Kush Maini, this would naturally draw audiences to support regional talent, ultimately boosting demand for F1 as well. Such collaboration would also benefit FanCode in increasing viewership for F2 and F3.
Second, grassroot development, which has partly begun with the introduction of karting in India. However, deeper integration is required with expanding infrastructure across smaller cities to create a pool of young talent which can further leverage India’s participation in global motorsport events.
Third, F1 demands exceptional skill, teamwork, and strategic expertise with drivers, engineers and pit crews operating under a competitive framework regulated by FIA. Its global appeal promotes innovation and competition, contributing to sports development in India. However, its classification as “entertainment” (rather than a sport) in India has created financial challenges, such as an added tax burden and disputes over race promotion fees. By reclassifying F1 as a sport, a status it undeniably meets, the government and F1 could benefit mutually, fostering growth in India’s motorsport.
Fourth, public-private partnerships can ease the burden while acting as tourism boosters, as seen in Abu Dhabi. The Yas Marina Circuit turned the city into a global sporting destination, with events like the 2024 Grand Prix leading to a 34% increase in International visitor spending and hotel occupancy. India can replicate this success with projects like GIFT City in Gujarat.
As Jarno Zafelli highlighted, “Motorsport circuits can be catalysts for economic impact and raise the awareness of areas/cities or countries. The GIFT area, we understand, with its proximity to Ahmedabad, near the airport and with the right interpretation could make it a destination city and differentiate it on the global stage.”
Fifth, owing to the excellent storytelling art of Netflix series – Drive to Survive, reigniting the engagement for F1 in India, attempts can be made to offer similar narratives focusing on Indian motorsports or behind-the-scenes to build a sense of attachment with the sport.
Sixth, even if we were to host an F1 race, ticket pricing can pose a challenge. To address this, ticket prices could be reduced with government subsidies and sponsorships from local brands in exchange for global visibility. The government could also offer to co-fund operational costs and licensing fees, similar to the approach adopted by the Singaporean Government. Such support, while easing the burden, will also contribute to the development and promotion of sports in India.
In conclusion, hosting Indian Grand Prix 2.0 faces tough challenges. The niche appeal of Formula 1, high costs, past failures and its struggle to connect with a broader audience make a comeback unlikely. While prospects like GIFT City spark some hope, issues like financial barriers, costly fan access, ill-equipped infrastructure and cricket’s dominance continue to impede the progress, unless acted upon.
As much as we want F1 to return to India, the truth is harsh – our country isn’t ready to host another F1 race.
