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30th October 2011 was a special day for every motorsport enthusiast in India. This was the day when, after so many failed attempts and possibilities in the past, the inaugural Indian Grand Prix finally got under way. This was a huge victory for many people who had worked hard behind the scenes to bring Formula One to India.
The country had been long knocking on the door for a Grand Prix, and with Bernie Ecclestone keen to grasp the potential huge market for Formula 1, it was a win-win situation for everyone. The need for the race was accelerated because of Force India’s emergence in F1. This made it absolutely mandatory for Indians to get the taste Formula 1 in their own backyard.
India’s thirst for Formula 1
Hyderabad, Bangalore and Mumbai were the cities that had made initial moves (or expressed desire) in the past to host a Grand Prix. Some deals were also signed, but nothing came to conclusion, and hence the chance of India hosting a race looked as a distant dream.
As the world entered a new millennium, Formula 1 had already generated a large number of audiences, apart from previous few niche supporters, in India. This was because of Michael Schumacher and his emergence as a multiple world champion with Ferrari.
Another influencing factor for the huge fan base was the regular live coverage of Formula 1 races in the region, where cricket was (and still is) the most popular sport. Narain Karthikeyan’s success in securing a F1 seat in 2005 (and the rise of Karun Chandhok through the ranks few years later) also propelled the cause of F1 getting into the DNA of Indians at various stages.
After this, you could sense it; the race was coming closer and closer, day-by-day, to India, but unfortunately nothing substantial was materialising. Formula 1, as whole, didn’t reach India yet, but drivers and Formula 1 cars (replicas at most cases) were finding their way to the country. This was possible because of the sponsors, which were associated with the sport, bringing the elements of Formula 1 closer to India.
Companies like the UB Group, Red Bull, Mercedes, Renault, ING and Vodafone, were all keen to cash in on the world’s largest democracy by ushering their respective teams and drivers to showcase what F1 is all about.
Finally, the birth of the Indian Grand Prix
With so much positive feedback being generated from the brief glimpses, it was only matter of a time before India joined the elite league of countries hosting a Formula 1 race. The fire was started way back in 2007 when the Indian Olympic Association announced that it had made a positive contact with Formula One Management CEO Bernie Ecclestone.
The intent was to bring F1 to India by 2009 or by 2010. The contractual-intent, which was eventually grabbed by a private firm called Jaypee Group after the IOA failed to live up to the earlier expectations, was signed few months later. A five-year race-deal was inked between FOM and Jaypee Group and this was regarded as a huge step in making India a long-term feature in the F1 calendar.
Thus, the inaugural Grand Prix of India had found its way into the 2011 season, at least on pen and papers. A track engineered by the famous German racetrack designer, Hermann Tilke, was built in the area of Noida, Uttar Pradesh, and it was called the Buddh International Circuit, the new home of Indian-motorsports.
Everything went according to plan, apart from few minor bureaucratic issues and land-acquisition problems. With it, the Indian Grand Prix was born in 2011. Nearly 100,000 fans witnessed the first Formula 1 race being held in the Indian Sub-continent. Red Bull’s Sebastian Vettel dominated the race, but the Buddh circuit had gained a special place in the hearts of many other drivers too.
The track, even though termed as another “Tilkedrome”, was appreciated by most F1 drivers because of its challenging nature. The next two editions of F1 season also saw the return of the Indian Grand Prix and Vettel’s dominance over the Buddh circuit. But, none would have predicted that the Grand Prix, after only three runs, would stand to an immediate halt right after the 2013 race.
The cookie started to crumble
The writing on the wall of the dim-future of the Indian Grand Prix started as the 2013 event approached India. The whole Formula 1 circle was very un-happy because of the slow visa and documentation processing problems created by the Indian customs right from the 2011 edition.
With more and more bureaucratic problems arising, and tax problems getting even worse, the Grand Prix in India was surely going to take a sabbatical, if not a permanent closure, by 2014. And as expected the race was dropped from the 2014 and then subsequently from the 2015 calendar.
The official reason given was the time frame for the absence of the race in 2014. But, red-tape issues and the financial crunches of the Jaypee Group (which were getting higher every second) were the de-facto reasons. The financial-crunch of Jaypee has been very imminent with the company. Till date, the group has been selling many assets in order to balance their books.
It was reported that the group couldn’t even reach breakeven with its F1 project in three years thanks to various fines and forms of collateral it had to pay to keep the racing in India going. Another strong reason for the drop was the fact that Jaypee Group never got the expected government (both state and central) support for the race.
The Jaypee Group had to pay, the hefty $40 Million hosting fee, from their own pockets, to the FOM and also had to shell out various government collaterals. It was also said that the F1 supreme was unhappy about how the things were unfolding on the commercial side of the Grand Prix.
All these issues created the unfortunate down fall for the race; and the Grand Prix, till date, is still absent even from the upcoming 2015 season. Many countries cashed in on the opportunity with Russia and Austria getting a place in the 2014 calendar and the returning Mexico, and newly added Azerbaijan, also getting deals for 2016.
Even-though F1 has moved on from India, but there are few pending cases still going on (for one reason or another) in various civil-courts across India against all the three editions of the race.
The future of the Buddh circuit and the Grand Prix
After an absence from this season, and with an imminent snub for the 2015 one, a boost to reinstate the Grand Prix was initiated by the Jaypee Group (the race promoters) right from 2014. The group announced in November of this year, on the sidelines of the inaugural Russian-race, that it held talks with F1’s ringmaster about a possible return of the Indian Grand Prix by 2016 or 2017.
Even Ecclestone acknowledged the positive talks. “We had a good meeting in Russia. I was assured that the tax and other related problems will be sorted out in due course and then we are good to go back. It is too late for 2015 now, so we are working on 2016," the F1 commercial-boss told PTI in November.
This was fabulous news for every motor-racing fan in India and the attitude was not a just a flash in the pan fire, it looked conclusive. This was also very essential for the future of $400 Million Buddh circuit also as, apart from F1, no major sporting event has ever been held here.
Formula 1’s chance of formidably settling down in India was jolted last time around thanks to the government keeping a demeanor of: “Formula 1 is not a sport, it is a form of entertainment”. This attitude created various red tap issues, such as the fact that even the drivers had to face visa issues and the general public had to pay entertainment taxes on the race tickets.
Even the teams (and indirectly, again the race promoters) had to cough up various extra taxes in order to bring their equipment into India. But, with the Federation of Motor Sports Clubs of India (FMSCI), the leading body for motorsports governance in India, about to become a National Sports Federation, there are some positive notes coming out for the motorsports fraternity.
Even-though it is understandable why the government won’t give any financial support, but at least if the sport of Formula 1 is recognized as a “sport”, it will do a world of good. A change in status of the Grand Prix from an “entertainment” event to a “sporting” one will eradicate various hefty tax issues.
This will also clear all the pending cases against race organizers, as most of them have been based upon the tax problems. A little support is what F1 needs in order to be back in India and with productive talks already in place, the chances of the Grand Prix returning to the Buddh circuit looks bright.
The infrastructure is here in place, the fans are also there, and with a new government in place, one can only hope things can be a bit brighter for the currently defunct, Indian Grand Prix.
Why Formula 1 needs India back and vice versa
Although one might argue that there are various socio-economic and pressing development-related problems which needs to be addressed first, but in terms of benefits, even Formula 1 has created income for many Indian people. Not only did the sport boost tourism, it also created jobs in various forms.
And, with a state of the art circuit already in place, there is no point isolating and ignoring the sport. As a spectacle, if the race permanently makes a place in the calendar, it can act as a huge promotion for the country. India can show the world that even it can hold world class sporting events on a regular basis.
The race is also very important it terms of showcasing the nation as a major sporting venue, and with it promoting New Delhi as its sporting powerhouse. This is the reason why India had hosted the Commonwealth Games in 2010 and is also aspiring to host the Olympic Games in the future.
As F1 has a huge audience base, thanks to its appeal and global reach, the onus is on India to take the right steps, as the world is watching. It is safe to say that if the Indian GP returns, after all the issues are resolved, it will return to stay for good.
The Jaypee Group, even though F1 is a commercial initiative by them, is working very hard to bring it back to India. And many companies, sponsors, and most importantly the fans, would want the race back too. India is a huge market for car manufacturers, and hence Renault, Mercedes, Ferrari, and even McLaren-Honda for that matter, would prefer a Grand Prix in India.
And by virtue of it, they will get a renewed reason for their presence in the Indian sub-continent. This is why, once again we can be sure that it will still be a win-win situation, for both F1 and India.
