Examining the link between economic progress and sports excellence
Sport and economic power have long gone hand in hand. Sherlock Holmes believed that one could infer the presence of the Atlantic by induction from observing a drop of water. Likewise, a future historian with no evidence other than the Olympic medals tables in the 20th century could surmise the waning of the British Empire, the emergence of Germany and Japan, the fall of Communism in Soviet Russia, and the rise of Southeast Asia and China amidst the base theme of steadily increasing American influence and dominance. The USSR was very strong till the 1990s in the medal tally but slipped due to its economy losing sheen for being unattractive for entrepreneurs and oligarchy-based corrupt practices. On the other hand, China has seen a corresponding increase in its medal tally.
In India, too, the performance in sports and economic progress have gone hand in hand. Over decades, since independence, the development of our economic outlook has been quite interesting – our entire economic ethos was founded on the need to be self-sufficient. Participation in world trade and the necessity of achieving world-class standards to attain export competitiveness were philosophies that we didn’t subscribe to for decades. That thinking, appropriate in its context and times, led to a complex, integrated and somewhat insular domestic economy, with markets full of goods and services that were wholly Indian but hardly world-beating.
India’s steps towards liberalization in the early 1990s have since led to a steady rise in its GDP and GDP per Capita. India’s rise as an economic superpower is directly reflected in its rising medal tally and rank at international sports events. The parallel rise of the two is fascinating, yet not surprising.
Table: India – Parallel rise in medal tally and ranks in international sporting events and economic growth
In India, cricket unifies the nation like nothing else. The slogan and cries of “India-India”, the tricolor and the ocean of blue jerseys in any cricket stand simply makes Indians shiver with pride. However, along with this, there has been a rise in interest and success in other areas of sports as well. Abhinav Bindra (rifle shooting), Sania Mirza (tennis), Saina Nehwal (badminton), Mary Kom (boxing), Phogat sisters (wrestling), Neeraj Chopra (javelin), Praggnanandhaa (chess), and many more sportspersons with their successes have captured the imagination and interest of a young, rising and ambitious India.
What can sports do for our economy?
It’s not just entertainment. It is much beyond – it can spur the economy like tourism. Many countries thrive on tourism alone. Our IPL is one example of the revenue sports can bring. From advertising, sponsorship, branding, and distribution to viewership, the multiplier effect can be massive. It could create a large number of jobs – trainers, coaches, and maintenance staff, on and off the field, commentators and storytellers, writers, and paraphernalia and its distributors. Each sport can become a tiny economy in itself. This way, while sports benefit from the economic prosperity of a country, they also contribute to the growth of the economy and thus this creates a virtuous cycle.
Way forward – India with its 1.4 billion people is not short of talent. Still, why are we way behind China?
The reasons for the same are the lack of a sporting ethos, poor infrastructure and resources, corruption, lack of accountability in sports officialdom, and insufficient economic incentives to pursue a serious sporting career.
Managing Director & Group COO,
Equirus
What can be done? Government support is the low-hanging fruit and the easiest way. But corporate support can go a long way and is more powerful than government support. PSU companies have been providing jobs for a long time. Indian Railways has been known to nurture talent since time immemorial. Beyond jobs, contribution via sponsorships to owning teams, building infrastructure, and providing financial support to young talent can go a long way. We have heard many stories of our medal-winning athletes being put to groundwork (in government jobs) when it is time for them to practice. This needs to stop. The recent story of our chess grandmaster is inspiring. More institutions need to come forward. Corporate India has built India shining, and they will also contribute to India shining in the sports arena. This World Cup and beyond, Diwali will continue!
