India and formula one have not had a long-standing relationship. It has been more than a decade since the country last hosted a Formula one race. The Indian Grand Prix was once expected to establish India as a major destination for international motorsport. So why after only three editions, the race disappeared from the Formula one calendar?
By the time the third race showed up. The financial condition of the organiser group was in dire state. These financial difficulties also affected the group’s ability to sustain its investments. The financial strain was further complicated by legal and tax- related issues surrounding the Formula one event in India. Tax disputes and regulatory issues further complicated the event’s financial arrangements.
While taxation emerged as a significant obstacle, contemporary sources point to a combination of factors behind the race’s disappearance, including financial difficulties, taxation and scheduling constrains. The attendance declined significantly between first two races raising questions about the event’s long- term commercial sustainability. One more issue that arose was, the Indian government does not consider F1 as a sport but as entertainment.
So, if these problems happened in the past, why does the government want the F1 back now? The government has been working hard to resolve the tax and regulatory hurdles and efforts are being made to bring the Indian GP back as early as 2028. Mandaviya said the government objective is to create the necessary framework by next year to facilitate the return of Formula 1 to India by 2028. The minister further highlighted the commercial potential of F1 and its role with in the government’s broader sporting ambition. “Motorsport will also be positioned as an important component of the government ‘play in India’ initiative.” There is an entire economy that can revolve around F1 and India has tremendous potential because the sport has a massive fanbase. According to the records of last December the number of fans have raised from 79 million to 98 million in less than 6 months, underlining the sport’s increasing popularity and strengthening the case for a return of the Indian Grand Prix.
Much has changed since 2013, the old- state entertainment tax regime has been replaced by GST, Providing a more unified tax structure and the circuit is now owned by The Adani Group, giving a hope for the new start. Formula one has publicly expressed interest in returning to India, while no specific official FIA (motor sport regulatory body) announcement confirming an Indian GP for 2028 has been made till now. Moreover, international investment and business grows too as Grand Prix brings sponsors, manufactures, international media into a country.
An Indian GP could benefit several parts of the economy. Tourism and hospitality, infrastructure and employment could benefit, while the Indian motorsport could gain greater opportunities for young drivers, engineers and other professionals. Major international events can strengthen India’s global image or can brand India.
However, these benefits depends on strong government support, private investment and clear policies to ensure that India could host such events successfully. Bringing back F1 could be far more than reviving a race. Yet, the failures of 2011-13 remain a warning. Whether the 2028 return becomes a lasting success or another costly expenditure depends on learning from the past.
October, 2026
