Summary

What happens when a stadium or arena fills? Beyond the neon wristbands and the roaring crowds, the ripple effect of economic activity spreads through the host city. In this article, we discuss the economic impact of India's sold-out concert phenomenon and why global pop stars are becoming more fluent in "Namaste."

On September 22, 2024, online ticketing platform BookMyShow.com witnessed a digital stampede. A whopping 13 million Indians, eager to catch Coldplay in Mumbai, crashed the virtual queue. Tickets vanished in 30 minutes flat (1). This wasn't just a concert but a cultural moment, a testament to India's burgeoning appetite for live music.

India has lately become a hotbed for global pop stars. And it's not just the crowd but even the local economy that's grooving to their tunes. Concerts are translating into a spending push in the run-up to the event. The economic impact is being noticed by the upper echelons of the Indian Government, including Prime Minister Modi, who is pushing for the "concert economy".

The Numbers

• According to EY, India will host over 300 mega-concerts (those with over 5,000 attendees in a concert) in 2025 (2), with total concert events reaching a staggering 16,700 compared to just over 8000 in 2018.
• Concert revenue is projected to hit US$ 115 million, a 25% jump from current levels (2).
• The total spending push across different categories from September to December 2024 alone is estimated at US$ 185-230 million. (3)

Adding India To World Tours

India's massive youth population makes it a fiscal goldmine for touring artists. Sponsors, managers, and bands alike reap substantial profits, fueling a surge in international acts and boosting local talent.

Here Are Some Of The Recent Acts In India

November 2024: Dua Lipa headlined the Zomato Feeding India Concert in Mumbai on November 30, 2024

December 2024: Bryan Adams

December 2024: Maroon 5 made their India debut

January 2025: Coldplay's Music of the Spheres world tour

February 2025: Ed Sheeran's second visit in a year

March 2025: Shawn Mendes and Greenday as a part of Lollapalooza 2025

But the stars are not just in it for the money. They go beyond the stage performance and the courtesy "Namaste India" as lip service to the country's cultural niceties. They're actively immersing themselves in the crowd and chaos of India.

Is Shawn Mendes in a Virat Kohli jersey? Dua Lipa's Bollywood mash-up? Ed Sheeran's impromptu busking (and subsequent police encounter)? These moments transcend mere concerts, becoming viral sensations.

Why Has India Become the Hottest Concert Destination?

1. The youth dividend: India's demographic dividend truly comes into play in the concert economy. The country has the largest youth population. And they don't want to listen to music, they want to experience it.
2. Rising disposable incomes: Concert culture was not big in India, but experiential spending increases as disposable incomes rise. Their keen ear and incomes make the country a good destination for international pop artists.
3. Digital Convenience: Online ticketing platforms have democratized access, making concert attendance easier than ever
4. Social media: social media makes concerts feel far more extravagant than they are. Visual proof, hype and social media validation are driving youth to concerts. Instagram accounts popped up that offer a tag on a concert story for US$ 1-5. Makes one marvel at both the gumption of the account creator and the vulnerability of the buyer.

But let's discuss the more mainstream economic forces at play around a concert and how they are contributing to the economy of the country.

The Economic Breakdown of Concerts: Where Does the Money Go?

It's estimated that between September and December 2024, there was an aggregate spending (including ticket sales) push ranging from around US$ 185 to 230 million (Rs 1600-2000 crore) (3) Here's how the amount has been broken up across different categories:

Spending Push of Concerts Between September To December 2024

1. Ticketing : 85-100 US$ Millions
2. F&B : 17-20 US$ Millions
3. Hotel : 23-30 US$ Millions
4. Transport : 24-30 US$ Millions
5. Sponsorship : 30-35 US$ Millions
6. Miscellanous : 5-6 US$ Millions

          Total : 185-230 US$ Millions (3)

Exchange Rates Taken As Of March 2025

1. Ticket sales at US$ 86-100 million are the largest expense. Instant sell-outs and the absence of organized reselling have created a lucrative scalping market, with tickets fetching exorbitant prices, reflecting India's strong concert appetite.
2. F&B restaurants and hotels are sectors that thrive. Hotel rooms fill up, and restaurants get crowded. When Coldplay announced their concert dates in the Western city of Ahmedabad, room rates peaked at a few lakhs per night. This shows that even hoteliers don't hesitate to capitalize on these transient opportunities.
3. Airfare and transportation: Travelling to another city to attend a concert is viewed as a part of the whole concert experience. If tickets at a venue get sold out, Indians don't hesitate to book a ticket at another venue in another venue. The quick sell-out of the aforementioned British band's Mumbai concert prompted them to announce another gig at Ahmedabad. And just like hotels, airlines leveraged the demand jump and offered surge pricing.
4. Sponsorship: Sponsors spend an estimated US$ 30-35 million. This includes title sponsorship, co-sponsorship and associate sponsorship. However, the estimates are conservative and have the potential to be on the higher side, considering the involvement of more and more local brands that cater to the masses.
5. Other spending: Planning an event of scale requires event managers, security, gig workers, merchandise spending, and much more. This spending is pegged at US$ 5 million.

The Opportunity

Concerts bring about not just economic benefits but also catapult India's position from a social and cultural standpoint as well. The increase in the number of international artists who are choosing to perform in India also puts the country on a higher cultural pedestal than it ever was. With its central location and a large cohort of domestic audiences who demand live music experiences and experiential travel, India has a chance to become the top music tourist destination in the world.

However, it doesn't come without challenges. While metros are equipped to host large-scale events, infrastructure limitations and logistical complexities remain a challenge in some areas. Navigating the regulatory landscape for permits and approvals can also be challenging for event organizers.

India's potential as a music tourism hub is substantial. By addressing the challenges and capitalizing on its strengths, India can continue attracting a growing number of music enthusiasts from around the world.

 

Source:

1. Business Standard

2. India Today

3. Bank of Baroda

 

 

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