What would it take to bring F1 back to India?

In today’s episode on 26th Feb 2026, we tell you about the Adani Group’s intent to bring F1 back to India and what it would actually take to make that happen. ⁠Book a FREE call with Ditto here⁠ https://ditto.sh/vx51ji https://ditto.sh/vx51ji

• 0:00Speaker 00

  Hello folks, you're tuned into Finchart's Daily. In today's episode, we tell you about the Adani Group's intent to bring F1 back to India and what it would actually take to make that happen.

• 0:13Speaker 00

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• 0:54Speaker 00

  On October 27, 2013, Sebastian Vettel stepped out of his Red Bull, dropped onto his knees and bowed to his RB9 race car on the main street of the Bud International Circuit in Noida. It was his fourth consecutive world championship and this moment has since been known as bowing before the Bull. The crowd roared as the sun dipped behind the grandstands and for a brief moment, India was at the centre of Formula One. Drivers loved the sweeping turn 10, 11, 12 complex, teams praised the elevation changes and FI, which is Federation Internacional de Automobile, which is the governing body for motorsports too, had no sweeping complaints about the safety or the layout. By all sporting measures, the Indian grand pics worked.

• 1:37Speaker 00

  So, why did it disappear after just three races? You see, this was primarily because of taxation trouble. The JP Group, which built and hosted the race at Bud International Circuit, found itself navigating a minefield of regulations. First, the event was classified as entertainment rather than sport, which triggered heavy tax liabilities. On top of that, payments made to Formula One management were dragged into withholding tax disputes where authorities argue that tax should have been deducted before remitting the hosting fee abroad. There were also disputes around custom duties on imported equipment and questions over whether Formula One Management had a taxable presence in India, add infrastructure costs and mounting legal uncertainty, and the financial model quickly became unsustainable. What looked like a sporting triumph on television was behind the scenes, a balance sheet under stress.

• 2:22Speaker 00

  We also spoke about this earlier. However, the story may not be over. With the JP group slipping into bankruptcy and the Adani group looking to take over, fresh interest has emerged in the Indian grand prix. In fact, Karan Adani recently said that discussions have taken place with stakeholders about the possibility of bringing F1 back to India. F1 meanwhile is not the same sport it was in 2013. Netflix's Drive to Survive and the more recent F1, the movie, dramatically expanded the sport's global audience. F1 has cracked the US market with the races in Miami, Austin and Las Vegas. Middle Eastern governments also treat F1 as a strategic asset, so the bar for entry is, in fact, quite higher. So, what would it really take to bring F1 back to India? The first and most obvious issue is economics.

• 3:07Speaker 00

  F1 races are not self-sustaining ticketed events. Governments or sovereign funds typically underwrite them because the hosting fee alone can cost twenty to sixty million dollars. Saudi Arabia, Qatar, Abu Dhabi and Singapore treat F1 as investment for tourism and soft power rather than a commercial event, expected to turn a profit on ticket sales alone. So if India wants F1 back, we cannot rely solely on a private promoter hoping to recover costs through ticketing and sponsorship. Either the central government or a state government would need to treat the event as a strategic infrastructure, similar to how other countries approach it. Without that backing, the financial risk remains too concentrated. Second is taxation. As I mentioned earlier, the Indian grand prix was earlier disbanded because of taxation troubles.

• 3:49Speaker 00

  This has been since cleared with motorsports being classified as a sport rather than entertainment. Even if indirect taxation has since evolved under GST, clarity on profit attribution and logistical exemptions would be essential before organizers come it again. To understand this, recall what happened the first time. Authorities argued that F1's presence created a permanent establishment in India because the race was held in India, making it liable for domestic taxes. Teams bringing in cars and other equipment also faced complex customs trouble at our ports. The result was regulatory uncertainty and unpredictability. Any revival would require a clean legal and taxation framework. GST treatments must be predictable, direct tax obligations must be clearly defined,

• 4:31Speaker 00

  and there must be protection against future litigation that reopens settled cases. Private capital will not commit to multi-year contracts without this stability, because F1 contracts typically run for three to 10 years. If the regulatory environment can shift mid-cycle, the risk becomes just too high. However, we can see that the government is also keen to bring the sports back. Sports Minister Mansuk Madhviya recently spoke to officials from the Yamuna Express Industrial Development Authority, which now controls the circuit. He said that the long-term management of the Bud International Circuit could be handed over to a professional sports management company. Now this opens up the door for Adani Sportsline, the sports arm of the Adani Group. They have experience in managing large-scale sporting properties and come with a deep capital. A group like this is structurally better positioned for the operational complexity that Formula One demands.

• 5:16Speaker 00

  This will also in turn treat how the asset is treated on paper. Earlier, this circuit was promoted and operated by a real estate developer whose core business was not global sports event management. This addresses the taxation part, as income would now be treated as revenue from operations, rather than other income, which is what led to tax confusion in the first place. The third issue is infrastructure. F1 today is a weekend-long spectacle built around hospitality, concerts, luxury tourism and corporate networking. Cities like Las Vegas and Miami integrate the race into urban planning by not merely providing a track. They created an experience around it. India already has a world-class circuit, so the physical racing surface is not the bottleneck. What matters now is the surrounding infrastructure.

• 5:59Speaker 00

  Airport capacity, seamless transport corridors, five-star hotel availability, corporate hospitality suits and high-end tourism tie-ins all shape the commercial viability of the event. The race must fit into a broader tourism and branding strategy and not operate in isolation. This is precisely where a conglomerate like the Adani Group could bring leverage, given its footprint across airports, logistics, hospitality and urban infrastructure. The ability to integrate transport, premium experiences and corporate partnerships under one ecosystems could materially strengthen India. India's pitch to F1. That said, the fourth issue is the F1 calendar itself. F1 now runs a 24-race calendar. Teams have repeatedly expressed concern about logistical strain and travel fatigue.

• 6:41Speaker 00

  Adding a race requires either expanding the calendar further or displacing an existing venue. To justify inclusion, India must offer either a compelling financial package or strategic geographic value. There is a possible angle here. An Indian grandpricks could anchor an Asian leg alongside Singapore and Japan, reducing travel friction and strengthening the sport's presence in the region. But that requires coordination with F1's broader scheduling priorities, which we do not have direct control over. The fifth issue is commercial viability, which is the most important part. Corporate India must see tangible value in associating with the event. Domestic brands, tech firms, financial institutions and conglomerates would need to anchor sponsorship deals. Because without good local sponsorship, the financial burden falls disproportionately on the government or promoter.

• 7:26Speaker 00

  In successful markets, F1 is embedded within a network of corporate partnerships that extend beyond race weekend into year-round branding and activation. Taken together, these issues show that bringing F1 back is not about audience or taxation. It is about aligning government policy, capital, logistics and strategy. The audience exists. Motorsport viewership in India has grown, especially among younger demographics. What is required is coordinated intent and a willingness to come at long term. If structured correctly, F1 could boost tourism, create global visibility and signal soft power. It could also strengthen India's sporting ecosystem by creating pathways for local motorsport development and attracting ancillary industries. So, while the Adani Group has the intent and some of the key ingredients need to make F1 work,

• 8:10Speaker 00

  there are still a few hurdles it must overcome before it can bring F1 back to India. But if the model resembles 2011 to 13, even with a private promoter like the Adani Group, carrying most of the financial risk amid policy ambiguity, the outcome is likely to repeat itself.

• 8:27Speaker 00

  Thank you for listening to today's episode. And if you want to share your feedback or suggestions, do drop us an email to [email protected]. Until next time.