Now that the commonwealth games are approaching we shall see a lot of changes in the field of sports in general. It will not only be an exciting event to keep a track on but also help the Indian economy by the forex it shall obtain. There will be a lot of foreign sportsmen coming to India from 50 countries. Along with them will come their followers and fans.
A grand sports event like this generates a lot of mass money that goes into circulation. The economy of country is stimulated not only by the steps taken by the government but also by the amount of money that is in circulation. Since the Reserve Bank of India releases the cash only during the agricultural season these events provide an avenue for the citizens to get the money flowing in the market.
The more the money that flows in the market the more the economy is stable and the purchasing power of the people is increased. Not directly by the increase in per capita income but indirectly by the lifestyle of the participants. This in turn positively increases the lifestyle of the citizen and side by side provides the government with enough money to take up public projects.
The above theory has already been in practice for two years with respect to IPL. IPL has successfully flushed big money in the Indian market. Right since its inception IPL has played a pivotal role in bringing out huge money from the coffers of various sources. This money was otherwise sitting idle and gaining relatively less interest for isolated parties. Now that the money flows into the open market it helps in the momentum of economic development for the nation.
A rough analogy can be made by calculating the price of airing advertisement on the TV. The more the price of the air time means there is more idle money with the advertisers. Since advertising serves no solid purpose other the distribution of information of self interested parties.
It means that the money let out on these is spare (even if the companies are not showing significant profits). This spare money and association with the tournament further constructs pathways for a lot of small players to make their presence in the market. E.g. www.ipltracker.com.
We saw that when IPL1 began it had completed all business transaction before any of the matches began. This was done thoughtfully as it gave the organisers & associates enough time to prepare for the tournament.
We heard on the news that the grounds were prepared, stadiums were revamped, security arranged, hospitality catered, connectivity enhanced, ticketing organized etc.
You might say that these are the norm. But earlier these issues were not taken up seriously & effectively. Since sportsmen deserve not only basic but high degree of attention. The facilities for the sports stars was also given proper treatment so that they perform to the best of their ability and have no complains (as promised by Mr. Modi).
IPL had infused the market with unprecedented growth & enough cash to take up the logistics of sports management on a better level. Therefore, we witnessed a smooth uncluttered tournament. All of these developments happened at a national level. Every city planned & executed their respective responsibilities with due diligence. The franchisees, government, civil & civic authorities, sponsors, BCCI, IPL, promoters, event managers all came together to rebuild the brand and standards of cricket in India. Since everything was planned and plan of action followed thoroughly IPL1 proved to be a success.
The IPL season 2 was shifted to South Africa overnight because South Africa had all of these things in place beforehand. The other venue in consideration was England. In return India lost out on the business that IPL would have been generated. Thus, season 2 was relatively mild on business in India .
Now that it is back, we see an uncommon leap in commerce. If the IPL continues each year, by and by we shall be happy to see the development of India in an unconventional method.