Fueling India’s sports story

Bengaluru: Deloitte and Google recently came out with a study titled “Think Sports: Unlocking India’s $130B Sports Potential” where it analysed the current market scenario and the future potential the industry holds. Once a cricket-obsessed country — the sport still is the numero uno by a great distance — India has now evolved into a true multi-sport nation with several superstars emerging across disciplines. Although the country still has a long way to go match powerhouses like China, United States and Australia or the European forces Germany, France, Italy, Spain and Russia, there’s no doubt sport has become a way of life for a significant part of a vibrant young generation.

A larger majority of the young population values fitness as much as their tasks in the cubicle. Be it a run in the morning, an hour in the gym, a game of pickleball post work or even football during the weekends with colleagues and friends, an active lifestyle is the mantra now. Yes they do party but there’s an equal emphasis on protein shakes, keratin etc. Diet is as important as work deadlines. Surveying all of this, the report said the Indian sports market, currently valued at $52 billion, is poised for a strong growth at 14% CAGR (compound annual growth rate) from now until 2030. In essence, it could touch $130 billion and surpass many of the major countries, simply because of the size of its demography and the changing lifestyles where fitness holds a key place.

With such potential in sight, it’s a fertile playground for start-ups. The startups — in sectors like information technology, banking, quick commerce, deliveries — who have played a pivotal role in the Indian economy's rise, can now do the same in the field of sports. In fact that was the observation made by the  Association for Sports Industry Professionals (ASIP) — a body formed on the lines of FICCI (Federation of Indian Chambers of Commerce and Industry) — recently where they acknowledged the importance of start-ups and the major role they will play, along with established names, for Indian sports to reach its true potential.

“... Sport startups need to come forward and they really are going to play a huge role in sports becoming a bigger market than what it is right now in India,” Dr Kanishka Pandey, ASIP board member and head of the centre for sports research at IMT Ghaziabad, told DHoS.

“Startups have a very crucial role in today's times in contributing to the economy. And as far as the jobs related to sports are concerned, as far as the innovation in the sports sector is concerned, that's why we understand that startups do have a very crucial role to play. Be it on the business side or the technology side, because India is obviously considered as a startup capital. And our goal is to ensure startups get the adequate support and guidance to be able to tap into this extensive market.”

The market is indeed extensive, not just at the elite level of professional sports but even at the amateur and casual segment. In major cities, there has been a steady rise in artificial football pitches as well as pickleball courts with most booked throughout the weekend and every evenings. The gyms are teeming with subscriptions while running clubs are witnessing an increasing number of participants. This has led to a higher demand for sporting apparels, equipment and nutritional supplements. A segment that was once dominated by industry giants like Nike, Adidas or Puma, now offers a chance for others to make a foray.

What has changed over the last decade is the central government’s major attention to sports. Funding for sports has increased multi-fold at all levels which has resulted in the nation winning over 100 medals at the Asian Games in Hangzhou in 2023. Not just at the elite level but the conduct of Khelo India Youth Games to identify grassroots talent and subsequent sponsorship of potential future medallists has ensured once-reluctant parents green-signal their wards’ sporting dreams without thinking twice. Then there’s the stated ambition of hosting the 2036 Olympics, something the government feels will put India firmly on the global map.  

GoSports Foundation CEO Deepthi Bopaiah, one of the committee members of government’s Target Olympic Podium Scheme (TOPS) which funds potential medal winners, reckoned there has been a steady rise in sporting entrepreneurs but it still remains a challenging market. “I have the good fortune of having the access of understanding the ground reality with athletes, but also understand at a government policy level, what is the effort and work that is happening there. So I think that insight helps. 

“If you look at the startup ecosystem in sport per se, sport is not a viable career. Forget saying I'm running a sport business. But I think in the last decade, the number of sports entrepreneurs have been on a rise, whether it's data analytics, whether it's equipment, apparel or its very, very fine technology, sports tech aspects that have come in... So I think the industry of sport has grown ridiculously. I think there is a lot of scope when you look at a start-up, but it has to still get that recognition as a  mainstream contributor, which has economic value. Until that happens, you'll still be a growing industry.

“I think this is an amazing time for anybody to invest in sport and anybody to invest in India, right? I think this is the India story, the India shining story in terms of the growth rates, the people. We have the largest population and we have the highest percentage of youth population, which means you need to keep our youth fit mentally, physically, emotionally. And that sport will play a very, very critical role.”

It indeed has to if the country aims to touch $130 billion as predicted.