India’s pivotal moment

As the government’s emphatic re-election propels India ever higher up the global scale, investment opportunities in major events are growing

Rarely has a re-election had such a huge economic impact as that of India’s Prime Minister Manmohan Singh, whose Indian National Congress-led alliance enjoyed an unexpectedly large majority vote in May 2009. This surprise result, coupled with the fact that India’s economy is largely based on providing services rather than exporting goods, has put the country in a very strong position while the rest of the world struggles. Some analysts have since suggested that India has the brightest future of all the BRICs. As soon as the election results emerged, the stock market soared 17 per cent rallied by the promise of stability.

Performers from India carry a flag during the closing ceremony of the Commonwealth Games in Melbourne 2006

Stability is certainly something that India had been missing. The Mumbai gun attacks in November 2008 horrifically illustrated the country’s susceptibility to terrorism. And then the ambush on the Sri Lankan cricket team in March 2009 in neighbouring Pakistan did not just eject Pakistan from co-hosting the 2011 Cricket World Cup; it raised question marks over India’s safety as a host nation. The hugely lucrative Indian Premier League was promptly shifted to South Africa for the 2009 season as authorities questioned India’s ability to secure both this event and the general election at the same time.

The Commonwealth Games: challenges and opportunities
Although officials in India have repeatedly asserted that security is not a worry for the 2010 Commonwealth Games in Delhi, the president of the Commonwealth Games Federation Michael Funnel is not entirely at ease. At the end of his two-day visit to the city, he told reporters: “The security system seems to be in place generally and the Indian officials have made sufficient efforts. But security is always going to be a concern in the coming years, not just for the Commonwealth Games, but for other events too. There is not too much we can do about this but expect that the Indian government will do everything possible to ensure safety.”

Construction work must not slow down if the project is to be delivered in time for the October 2010 event. "I am satisfied at the way things have progressed over the past few months, but I don't think we can afford to have a slip up from here on in construction work," Funnel told the media.

Delivering a successful Commonwealth Games is an opportunity India knows it can’t afford to miss. On a visit to Melbourne in March 2009, the previous Commonwealth Games host city, India’s Minister for Youth Affairs and Sports Dr M S Gill stated that the government had spent the equivalent of USD 1.9bn on the event already and is prepared to double this if necessary to meet the deadline.

The possibility of working on a major sports event like the 2010 Commonwealth Games in Delhi is also attracting huge interest from overseas businesses. Andrew Bacchus, Head of the Global Sports Projects team at UK Trade & Investment (UKTI) told Host City: “Over the last few years, UKTI has placed increasing importance on the upcoming Delhi Commonwealth Games.”

The Global Sports Project team has organised trade missions, seminars and workshops in Delhi in 2006 and 2007 and has hosted visits to the UK by the Central Public Works Department and senior Indian Ministry officials to better understand what the UK can offer. UKTI continues to alert UK companies to tender opportunities stemming from Delhi and makes suggestions to the Indian authorities of UK companies that can add value to the organisation and delivery of the Games.

“Supplying to the global events market allows firms to showcase their expertise on the world stage and win future contracts based on this experience. From stadium construction, safety and security to catering and event management, UK companies have the skills and expertise to deliver first class sporting spectacles,” Bacchus says.

With Delhi firmly committed to delivering a world class spectacle it may well turn to specialist products and services from overseas. This huge economy certainly has the money to invest in major events and the rewards are huge – not just for 2010 but further in the future. Bid consultant Jon Tibbs of JTA told Host City: “The Commonwealth Games provides a fantastic opportunity for the city and nation to show its credentials to the sporting world. If successful it will provide a great springboard for future Olympic bids.”