Sports Industry in India and Exports
The Indian sports industry is not new to the world, it is century old, this country provided a long list of games to the world and The Indian sports industry is growing rapidly and becoming the house for the sports.
Indian sports goods are popular around the world and gained popularity in the global sports goods market. Being labour intensive in nature, the sports industry provides jobs to more than 500000 people.
SGEPC (Sports Goods Export Promotion Council ) played an essential role, promotes the sports goods and toys from India. SGEPC leading 200 manufactures and exporters of sports goods and toys in India.
In FY 2019, the total sports, games and toys essentials export stood at USD 417.43 million and this reached to USD 404.13 million in FY 2020
Australia, Canada, France, Germany, Netherlands, South Africa, Sweden, US, UAE and the UK are the top ten destinations for export of sports goods in Fiscal Year 2019.
Sportswear, cricket equipment, protective equipment, carrom boards and hammock, inflatable balls and accessories, net, general exercise equipment were the exported items.
Indian sports goods are always on the high demand and this demand get hiked during the major sports events.
The country has emerged as the global leading sourcing destination for inflatable balls and other sports goods for global brands such as Lotto, Wilson, and Umbro.
Market Size of the Sports Industry in India
In 2019, the market size of Indian sports industry was around INR 91 billion, Indian premier league got the majority of the media consumption in the sports industry in India, however, other domestic sports also managed to gain popularity like Indian super league and pro kabaddi.
Recent Government Initiatives and Development
Soon India will have its first toy manufacturing cluster in Karnataka and will help the toy manufactures to grow and toy cluster will attract investment of over INR 5000 cr.
Growth of Sports Industry in India
As per the Datapowa, the Indian sports industry is one of the fastest-growing industries in the world, the revenue from sports advertising has risen from INR 10 cr to INR 8000 cr in FY 2020, according to Mustafa Ghouse, CEO of JSW sports. Without delaying further, let’s discuss the reasons behind the massive growth
The sports industry is growing due to the rising consumption of sports content, rising viewership impacting the market including sponsored ads, sponsorship and online sports content and application somewhere is helping the sports industry to grow. There is the only reason which is vital and plays an important role, helps every domain of sports from merchandise to retail is VIEWERSHIP. Let discuss the important factors behind all this.
- JIO data plans played an important role, internet access becoming easy and budget-friendly. As per Statista, in 2015, India today has about nearly 260 million subscribers but after JIO entrance, this figure becomes 564.5 million.
- Penetration of smartphone in semi-urban and rural areas in India and as per the Counterpoint’s Market Monitor service, India become the second-largest smartphone market in the world overtook the US.
- The online streaming platform is an essential factor behind the growth of the sports industry like Hotstar, JIo, Sony Liv
- Penetration of real-time gaming platform such as Dream 11 and MPL
- Engaging fans through the social media platform
- The rising importance of data and technology
- Female viewership is growing
- Viewership number is increasing in rural areas
- And last is the rising of sports start-ups in India
Let’s Understand Sports Ecosystem in India
Indian sports ecosystem consisting of four types of stakeholders that are government bodies, private entities, public-private partnership and Autonomous bodies and these stakeholders across the eight major segments governance, talent scouting and training, sports marketing, infrastructure development, sports retail, sports events, funding and sports goods manufacturing. And these all together form the sports ecosystem in India.
Major Organizations Managing Sports in India
- Ministry of youth affairs and sports (MYAS): MYAS is the apex government body for sports in India, it manages the funding for the sports management and development and also responsible for sports infrastructure and formulating the development programs for sports
- Sports Authority of India (SAI): They manage sports academic institution and training centre and also manage talent scouting schemes laid out by MYAS
- Indian Olympic Association (IOA): This body developed for Olympic in India, it is an autonomous body that implements Olympic charter over NSF’s
- National Sports Federations (NSF’s): It is also an autonomous body responsible for organizing the tournament and promoting their respective games and sports. NSF plays a decisive role in developing sports.
Source: (Ministry of Commerce & Industry, IBEF.org, kreedon.com, KPMG)