Sports and Gaming sector development in India – Investment Destination 2014
By Amit Bhushan Date 14th April 2013
Indian government is hungrily looking for sectors to sell to foreign investors to fund its Current Account Deficit and raise revenue to curb fiscal deficit. It is also looking for ways to develop local capabilities to nurture jobs for its youth in a hyper competitive globalized economy. The government has tried to sell its Carriers (Airlines) and its Retail sectors but failed to elicit response. The tightfisted foreign investor has snubbed the half-cooked, under developed and low level liberalization attempts of the government in these sectors. It is time the government appreciated the writing (of time) on the wall and decides carefully on what can sell amongst foreign investors and how this is to be properly facilitated so that both local population and foreign investor benefit.
The government must realize that the yesteryear ideologies have little place in today’s economy where the goods and services freely flowing across borders and regulations can preserve negligible amount of traditional values and do little to prevent consumption by surrogate means. To cite an example, India has banned Gaming/Gambling except for the state of Goa. It has little control on online Gaming as well as people who can travel to neighboring Nepal; Thus the government can do little to stop the industry but looses out handsomely (in terms of revenues) for the sake of tradition. The government has also not made any specific policy of repatriation of profits out of ‘Sports club/institutions’. This is even when the sector in Europe manages to attract significant investments and generates huge employment and inbound tourism. It is time for government to loosen some inertia and try to make supportive policies for transparent regulation of the sector to attract international investment. It should realize that capture of institutions by petty interest groups who look for private incentives for every step of development of sports have been doing much harm to sports sector than any good.
Regards Gaming/betting sector, perhaps it can extend licenses to some other states and union territories and bring in international investors. It can perhaps start with Andamans & Lakshadweep Islands and then extend services in tourism states such as Rajasthan, Himachal, Kerala. The gaming centers may be restricted to Dollars only public with passport during the initial phase till better regulations and public understanding evolves about such centers.
Regards sports, India can certainly do with better regulation for its sports bodies and clubs. It should allow private companies to own professional sports clubs and regulate betting and professional management of sports persons to take care of underlying exploitation. The revenues generated could fund a sports bodies policing and protection institution and associated facilities. Even if India manages to attract merely 10% of what Europe does, it will be a bonanza for people and it should not be impossible in the currently prevailing economic situation.