Recognising sports as an industry key to its development in India: CII-KPMG Report
Under the aegis of Confederation of Indian Industry (CII), KPMG on Tuesday released a report titled "Business of Sports - Shaping a Successful Innings for the Indian Sports Industry", identifying key issues in the sports ecosystem.
The report also explores measures to develop a private-investment led sporting scenario in the country - one that helps imbibe a sporting culture and achieve the country's vision of excellence in sports.
The reports states that resource scarcity in India makes it difficult for the Government to attain the above objectives and calls for collaborative efforts of both the Government and private sector towards strengthening the sports ecosystem.
Long term sustainability of commercial ventures in the Indian sports sector would require sustained audience interest driven by India's winning performances at international sporting events.
The reports further states that sports not only boost the youth and instil pride among citizens, but also facilitate social and economic development of a nation.
Sports sector is seen to have a significant socio-economic impact worldwide contributing to 1-5pc of national GDP. This can be achieved by building a sporting culture in the country.
However, in India sports is not recognised as an industry yet, limiting corporate investments except in cricket and a few other leagues. Being home to various upcoming leagues and the youngest population in the world, India's sports sector offers tremendous growth potential.
The report was released by Secretary at Ministry of Youth Affairs and Sports Ajit M Sharan at the Scorecard 2014, CII's National conference on Sports.
Earlier, CII National Committee on Sports Chairman and Group President (Asia) of Coca Cola Company Atul Singh highlighted the industry's role of "going beyond Sponsorships and CSR activity and the need for a policy shift to recognize Sports as an industry".
"This would help actualize the India@75 vision for broad-basing sports in India, and promote excellence in Sports, by promoting infrastructure development, providing technical support for athletes, as well as grooming talented sportspersons" he said.
"Corporate funding in sports may be the answer to ignite sports development in India. The gestation period for realizing return on such investments may be long, but global experience shows us that it could be potentially rewarding', said Jaideep Ghosh, Partner, KPMG in India
Global sports industry is estimated to be worth around USUSD 600 billion and growing at a rate higher than national gross domestic product rates around the world.
While direct sports revenues are dominated by gate collections, sponsorships, media rights, the sports sector may comprise several segments such as sports tourism, sporting equipment manufacturing and retail, sports apparel, recreational sports, high school and college athletics, as well as associated businesses such as sports marketing, sports medicine, venues and infrastructure, hospitality and merchandising.
(Posted on 26-02-2014)
Free Yearly Horoscope: Select your zodiac sign