India has seen significant growth in its motorsport culture over the past decade. The popularity of racing events like the Indian Grand Prix, which was held first in 2011, demonstrated the immense interest and enthusiasm of Indian fans. Bringing Formula 1 back to India would further fuel this passion and contribute to the development of motorsport in the country. The introduction of Drive To Survive in 2018 only accelerated the growth. When it comes to F1 fan bases around the world, India ranked 5th largest in 2019[1]. But it still doesn’t have an official broadcaster in the country nor do we have an Indian GP. Ever wondered what went wrong? Or what could have been?
1. Broadcasting: Doordarshan to F1TV
Let’s go back to the times when F1 was in India. It all started back in 1995. Schumacher had just won his first championship the previous year, and the world was mourning the passing of Senna. Damon was upset about the Australian GP, and India was about to experience its first live Formula 1 event. Vicky Chandhok, a familiar name, as he’s the father of Karun Chandhok, had his own production house that held the broadcasting rights for F1 races in India.
However, there was a problem. Cable TV had only been introduced in India three years prior, and Chandhok had to decide whether to offer F1 as pay-per-view or show it on the national network, Doordarshan. They chose the safer option of broadcasting F1 on Doordarshan, but it wasn’t easy. Prasar Bharti, the parent organization of Doordarshan, wasn’t particularly enthusiastic about showcasing car racing during their prime-time television slots. Eventually, Vicky had to pay Doordarshan just to broadcast Formula 1 on their network, marking the first live telecast of F1 in India.
However, this arrangement didn’t last long. At that time, F1 cars prominently featured tobacco sponsorships, which became a problem when the Indian parliament decided that promoting such products on television wasn’t ideal. As a result, the broadcasts were abruptly discontinued.
Later on, the broadcasting rights for F1 shifted to ESPNStar, which was known as Star Sports in the early 2000s. Interestingly, many new F1 fans might not be aware that India used to have its own pre and post-race shows, separate from the world feed. Steve Slater became a household name in India as he became the voice of F1 in the country. [2]
However, after ESPNStar transformed into what we now know as Star Sports, the decline in F1 broadcasting began. Investments in Formula 1 were reduced, the pre and post-race shows were canceled, and Indian commentators were lost. Eventually, Indian fans were left with only the international feed, which was also discontinued in 2023 when Star Sports didn’t renew the contract with F1. As a result, Indian fans were left with no option but to subscribe to F1TV in order to watch the sport.
2. Hyderabad: Biryani, Charminar and Formula 1?
Transporting us back to the early 2000s, a time of shifting cultural landscapes and technological advancements, Formula 1 found itself in the spotlight of discussions for a potential race in Hyderabad. Chandrababu Naidu, the then Chief Minister of Andhra Pradesh, embarked on a three-day trip to Italy during the Italian GP weekend in an ambitious attempt to bring Formula 1 to Hyderabad as early as 2006. During his visit, he met with Bernie Ecclestone and Herman Tilke, successfully securing Ecclestone’s acceptance to visit Hyderabad and finalize the deal. In fact, a preliminary agreement was even signed, setting the stage for hosting F1 races in the city from 2007 onwards[3]. Simultaneously, Sharad Pawar, the former CM of Maharashtra, announced that Mumbai would also bid for a race, claiming that it possessed better existing infrastructure and was more suited to host a race in the near future[4].
However, for Hyderabad to successfully host a Formula 1 race, significant infrastructural improvements were required. These included an international airport, an expressway connecting the airport to the race track, five-star accommodations for the entire grid comprising teams, officials, journalists, and media teams, as well as an international standard trauma center to ensure safety during the event. Additionally, a race track that met all the safety regulations set by the FIA was of utmost importance.[5]
Despite the ambitious plans, the anticipated cost of $200 million posed a significant obstacle. Moreover, the plight of millions of farmers facing a severe drought added to the challenges. Ultimately, Chandrababu Naidu’s dream of bringing an F1 race to his state faded away with his defeat in the 2004 elections. Similarly, Mumbai’s bid for an F1 race also faced a similar fate, as the government showed little interest in allocating hundreds of millions of dollars for motorsports ventures.
3. It’s here! Indian GP Gurgaon 2010 Noida 2011
In June 2007, following extensive negotiations between the Indian Olympic Association (IOA) and Bernie Ecclestone, it was officially announced that India would host a Formula 1 race in the 2009 season. The chosen location for the race was Gurgaon, and the track design was entrusted to the renowned Hermann Tilke. However, in September of the same year, a change in plans emerged, and it was decided that the race would instead debut in 2010 at the Buddh International Circuit.
Unfortunately, due to delays in land acquisition and construction works, the inaugural Indian Grand Prix was once again postponed, this time for an additional year. The timeline was incredibly tight, with the circuit’s inauguration occurring just a few weeks prior to the October 2011 Indian Grand Prix.[6]
4. Empty your pockets.
Jaypee Group, the owners of the track, invested approximately $463 million at that time in the construction of the circuit, aiming to recoup their investment as quickly as possible [7] . Additionally, they had to pay around $50 million just to secure a spot on the Formula 1 calendar. Consequently, ticket prices for the event were set quite high. During the inaugural race, the cheapest ticket was priced at Rs 2,500, while the Main Grandstand boasted a staggering Rs 35,000 price tag. However, due to poor sales, organizers later reduced the Main Grandstand ticket price to Rs 15,000 for the Race Day. Regardless, the inaugural race drew a crowd of approximately 1 lakh people.
In the following year, both ticket prices and attendance decreased. The cheapest ticket for the 2012 Indian Grand Prix was available for Rs. 2,000 on the Race Day, with the most expensive grandstand tickets priced at Rs. 12,000 for Sunday. Customers also had the option to purchase a season pass for all three days of the weekend, ranging from Rs. 3,000 to Rs. 21,000 [8].
However, in the third year, attendance rebounded. The race attracted a total of 85,000 people, and ticket prices were made even more affordable. The cheapest and most expensive tickets for the race day were priced at Rs. 1,500 and Rs. 12,000, respectively, while the season pass for the entire weekend ranged from Rs. 2,000 to Rs. 21,000. [9]
5. Did you pay your tax?
Despite the challenging economic conditions, Jaypee remained committed to its plans and invested approximately Rs 2,000 crore (USD 314 million) in the construction of the Buddh International Circuit on the outskirts of Delhi. According to the audited accounts of Jaypee Sports International Limited (JPSI), the company also paid a licensing fee of Rs 197.7 crore (USD 31.1 million) for the inaugural race, a figure that increased to Rs 249.6 crore (USD 39.1 million) by the third edition, indicating the presence of an escalation clause in the contract.
Additionally, the inaugural race incurred operating expenses of Rs 121 crore (USD 19 million), bringing the combined costs well beyond Rs 300 crore (USD 47 million).
The exact amount of taxes paid by JPSI for hosting the race is difficult to determine as the relevant figures are not segregated in the accounts from other company activities. However, leading Indian media outlets estimated custom duties to be somewhere between Rs 8 – 10 crore (USD 1.25 – 1.57 million). The government later dropped this tax in 2014, a few months after the last Indian Grand Prix.
In terms of revenue, the promoters were only able to recover Rs 140 crore (USD 21.2 million) from the 2011 Indian Grand Prix, despite attracting a crowd of 95,000 fans to the event. The figure dropped to nearly half at Rs 76 crore (USD 11.5 million) in 2012 but recovered substantially to Rs 113 crore (USD 17.1 million) in 2013.
By this time, Jaypee had managed to reduce the operational expenses of the circuit, bringing the total cost of staging the event down to Rs 273 crore (USD 42.91 million). However, the conglomerate still had to write off losses of Rs 160 crore (USD 25.13 million), without considering taxes. [10]
6. “WE WERE ON A BREAK”
There were numerous other challenges to overcome as well apart from the tax issues. Dealing with customs to import equipment for the race teams proved to be a headache, with Ferrari even attributing their loss in the 2012 race to the delay in obtaining critical parts. The visa process was also unforgiving, as Karun Chandhok revealed in an interview with the BBC, stating that numerous media personnel and team members were unable to attend the race due to visa complications.
“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” Karun Chandhok told BBC [11]
In 2014, Formula 1 initially sought to schedule a race in March instead of October, but the organizers were not prepared to host the event twice within a span of six months. However, they eventually agreed to the change. Unfortunately, the Indian Grand Prix was ultimately dropped from the calendar for that year, with Bernie Ecclestone citing bureaucratic and political issues as the primary reasons for excluding India from the 2014 F1 calendar [12] . Despite assurances that the race would return in 2015, it never materialized.
Furthermore, the owners of the track, Jaypee Group, encountered financial difficulties. As of March 31, 2015, the conglomerate’s total debt was estimated to be around Rs 75,000 crores, according to foreign brokerage firm Credit Suisse. To alleviate the debt burden, Jaypee Group opted to sell some of its cement and hydro-power plants. [13]
7. So long, farewell?
So, what’s next for the Formula 1 in India? One of the biggest misconceptions people have is that the Indian government considers Formula 1 or motorsports in general as entertainment rather than a sport. While it’s true that F1 was taxed as entertainment during its time in India, that was only at the state government level, not the central government. In 2015, the Indian government officially recognized motorsports as a sport when they included the Federation of Motor Sports Clubs of India (FMSCI), the governing body of motorsports in the country, in the list of sports ministry-backed national sports federations [15] .
It’s difficult to say for certain when the Indian Grand Prix might make a comeback, but considering the recent debut of Formula E and MotoGP in India in 2023, it doesn’t seem too far-fetched. Formula E is receiving support from the Telangana government, while MotoGP has been assured by the Uttar Pradesh government—something that Formula 1 didn’t have during its time here. These are promising signs. With proper planning and support, the return of Formula 1 to India is within reach, although there are other factors to consider. Even if India is the perfect place to host an F1 race, it’s not guaranteed to secure a slot in the super hectic 24-race calendar that F1 currently has. Nevertheless, we remain hopeful that F1 will make its way back to the country soon.
