Indian Grand Prix - To be or not to be?

Satellite Image of the Buddh International Circuit, Greater Noida, Uttar Pradesh, India

The Indian Grand Prix, which was inaugurated in the year 2011, has had two successful seasons till now. The race will also take place as scheduled in 2013, but as the CEO and President of the FIA, Bernie Ecclestone, has confirmed, the race won’t be held in the year 2014.

The main cause of this, as revealed by Bernie Ecclestone, is that the Jaypee Sports International (JPSI), local promoter, wanted the race to be held by the end of October, however the FIA wanted it to take place during the beginning of the season. This clash led to the cancellation of the Grand Prix for the 2014 season. Although it was later decided that the race will be held around March 2015 and all the parties have given that a go.

This being the main issue, there are other issues, such as, India’s strict taxation policies for the races which mean that the teams have to pay heavy taxes for their visit to the country. The JPSI offered to cover the teams tax bills and for the races to continue till the end of the contract in 2015.

With various issues at hand, the stakeholders in the Indian GP, like the Government of India, the FOM and the organizers have to reach a common ground for this to become a permanent fixture on the F1 calendar. F1 has high viewership all across the globe and in India, where F1 wasn’t very famous before, suddenly came to light when Michael Schumacher gifted Sachin Tendulkar his Ferrari.

Since then, the Indian fans of Formula 1 have only been increasing and take a great pride in hosting the sport. The fans have been more than welcoming of this fixture by giving almost full attendance for both 2011 and 2012 races. And last year, Lewis Hamilton gave a brief visit in the city of Mumbai, where he showed off his driving skills, even there the crowd was overflowing. Along with all of this, the Formula 1 merchandise sales are also on a rise in India, where you can see people wearing jackets, caps, gloves and other F1 gear.

The taxation policy of the country is putting an added financial pressure on the teams, this makes the teams reluctant to race in India. Govt. of India has a control over the taxation policy, and generate a high revenue from it. Although the government must realize that travelling to the event, the stay in the city and the ticket prices are already taxed and create a strong revenue itself. Therefore, some relaxation can be provided in the taxation for the teams which encourages them to support this fixture.

The Formula One Management (FOM) has to adjust the new fixtures coming up in Russia and New Jersey in their F1 calendar. Also, the Buddh International Circuit, which is present in Greater Noida, New Delhi has a possibility of strong rains from April to September.

The BCI is not the fastest track in the calendar and conducting the fixture in rains would be even worse. So, the local promoter, JPSI, suggested the event to be held in October. Both parties had valid reasons for their suggestions but led to a clash leading to cancellation of the race in 2014. However, it has now been decided that the race will be held in the month of March from the year 2015 and ahead.

So with all these parties taking efforts and making small adjustments from their side and meeting a common goal which is to make the Indian GP a permanent fixture, it is possible that India will be prestigious enough to host a Formula One Grand Prix for years to come.