F1's India comeback is gathering speed, but the road to the starting grid is far from clear

A couple of weeks back, Formula 1 made a rather surprising announcement of the African Grand Prix. The pinnacle of motorsport will be returning to the continent after 30 years, but the race will not be in South Africa, as many had expected, but in Rwanda.

The Formula One Management (FOM) which runs the sport, has opted for a new, purpose-built permanent circuit in Bugesera, south of capital Kigali, for the race, which should begin in the early 2030s.

For Rwanda, which endured the untold misery of a genocide in the 1990s, it is a watershed moment that showcases the emergence of one of the fastest growing African economies on the global map.


That is what mega sporting events from the Olympics to the FIFA World Cup to Formula 1-tend to do.

The return of F1 to Africa has also triggered an old, bitter question for Indian motorsport fans: When will India return to the F1 calendar?

India hosted three grand prix between 2011 and 2013 at the Buddh International Circuit (BIC) in Greater Noida.

The big challenge to bring F1 back is not so much in convincing the FOM that the most populous country in the world deserves to host a grand prix, but in assuring them that the problems that drove F1 out have been fixed.

THE RESTART

The good news is that behind the scenes, the chatter has been getting louder about a possible return. There have been several parleys between the FOM, the Adani Group, likely race promoters, and the Indian government.

Those privy to discussions say more active government support is a key ask from the FOM for taking conversations forward. The government too has been making the right noises, especially with the setting up of a task force under NITI Aayog to find solutions to the issues that resulted in F1 exiting India in 2013.

The experience back then wasn't rosy for F1. with taxation issues arising from the classification of the event as entertainment, customs disputes, not to mention the then promoter Jaypee Group's financial issues, which all contributed to a rather embarrassing exit for the Indian Grand Prix.

As motorsport veteran Vicky Chandhok, who was instrumental in bringing F1 into India back in 2011, says, "We made them feel unwelcome back then. There were tax demands even on drivers for their earnings from India."

Chandhok is referring to India's demand that F1, including drivers, pay tax on one-nineteenth of its global earnings in the country since the Indian Grand Prix was one of 19 races, something that played out in courts for years.

The root of almost all these issues was the lack of government endorsement. The Indian Grand Prix back then was seen as a private event promoted by the Jaypee Group, with the governments in the state and at the Centre not being active stakeholders.

Add the shift in political winds due to the 2012 change of government in Uttar Pradesh where the BIC is situated, and it becomes evident why things got difficult.

There were plenty of roadblocks. One, the then state government insisted on classifying the race not as a sporting event but as entertainment, resulting in as much as 40% additional tax burden on tickets.

As if that weren't enough, just 45 days before the first Indian Grand Prix was flagged off in 2011, the customs department asked organisers to pay 100% duty upfront on all F1 equipment coming into India. This reportedly would have amounted to 600 crore. The race went ahead after the Directorate General of Foreign Trade (DGFT) stepped in with a late regulatory change, but that amounted to a band-aid fix.

In many countries, a customs bonded area is created around the racetrack when F1 comes to town, eliminating the need for any duty on international cargo, race cars and other equipment. That is the sort of arrangement that might make FOM change its mind this time around.

The Indian experience was a sharp contrast to how F1 races are held elsewhere in the world, where governments tend to be active participants. Countries from the UAE to Singapore view F1 as a key platform to showcase them to an international audience.

As senior motorsport figures point out, the ownership of F1 may have changed hands from Bernie Ecclestone to Liberty Media in 2016, but the systemic memory of the issues that pushed F1 out of India are still fresh in the mind.

The experience in India back then wasn't rosy for F1, with taxation issues arising from the classification of the event as entertainment, customs disputes, not to mention the then promoter Jaypee Group's financial issues, which all contributed to a rather embarrassing exit for the Indian Grand Prix.

NITI Aayog's task force-headed by programme director Yugal Kishore Joshi, with representatives from the ministries of finance, external affairs and home has been entrusted with fixing these issues once and for all.

ET's questions to the government and the FOM elicited no response at the time of going to press.

ONE-EVENT WONDER

Back in 2013, the Jaypee Group's broader financial troubles meant it couldn't fund the race beyond 2013.

This time, says former F1 driver Karun Chandhok, it is important to ensure that F1 stays on if it comes again. "Sticking around is the most important thing. MotoGP came and went. Formula E came and went. We shouldn't get the reputation of being a one-year wonder. People should realise what F1 can do for the country in the eyes of the world."

Karun is referring to the apex of motorcycle racing the MotoGP having a bad experience in September 2023 when top riders and their team members were not granted an Indian visa until the last moment, throwing the entire event in doubt. The race eventually happened, but MotoGP has not returned to India.

The electric racing series Formula E too had a single event in India the Hyderabad e-Prix in February 2023.

In the case of Formula E, it was the change in government in Telangana in late 2023 that pulled the plug on the series, despite substantial Indian interest. Mahindra Racing is one of the founding teams of the Formula E World Championship, while Tata-owned JLR has the Jaguar TCS Racing team on the grid.

As an auto market, India is currently the third largest in the world, and that should make the possibility of the return of India to the F1 calendar attractive to automakers who are in F1 currently. Benedetto Vigna, chief executive of Ferrari, on a recent visit to India told ET that he is aware of the discussions to bring top-tier motorsport back to India. Vigna, who believes India represents a good opportunity for Ferrari, would likely be among a list of auto honchos who would welcome BIC back on the calendar.

DIFFERENT PUSH

A key reason why it may be different this time around is that the race promoters leading the charge the Adani Group is a much bigger player than Jaypee. The Adanis have already taken over BIC along with other assets of the Jaypee Group for ₹14,535 crore. They are likely to invest a further ₹300 crore to bring BIC-which has not seen a major upgrade for a decade to international standards. They will also have to finance $60-80 million as race fee to FOM for the privilege of hosting F1 and for operating expenses. They will also need to make a long term contract with FOM to ensure that F1 stays in the country.

Insiders say that it helps that the Adani Group's ambitions in motorsport are driven by its next-generation leadership who are fans of the sport.

As Pranav Adani, director, Adani Group, told ET: "The return of Formula 1 to India would be a defining moment for Indian motorsport. It would place India back on the global racing map and serve as a strong catalyst for building a much deeper motorsport ecosystem in the country."

The ecosystem play is critical in a country like India. Adani says, "The opportunity for us goes far beyond hosting a race. It is about inspiring the next generation of Indian drivers, engineers and motorsport fraternity, creating opportunities across technology and automotive sectors."

WHEN WILL F1 RETURN?

So when will Formula 1 cars thunder down the circuit in Greater Noida? Even if all stars align, it is unlikely to be before 2030, according to most people in the know. This even as 2028 is being actively mooted as an option.

The reason is that the current F1 calendar is pretty full.

While the Concorde Agreement, between the FOM, the teams and the F1 governing body FIA, which underpins the sport has a cap of 25 rounds, FOM and the teams have agreed on a maximum of 24 races until 2030 to manage the logistical strain and prevent burnout.

The calendar currently has 24 races, which means for the Indian GP to find a place, a circuit will have to be dropped.

As Karun says, "It is already a very busy calendar. Finding a spot in it is not going to be easy."

There is a more unlikely way to get on the grid, as Sepang in Malaysia found out recently, when it hosted the Bahrain GP because of continuing tensions in West Asia. Some fans across F1 forums had mooted BIC as an option when a replacement track was being evaluated for Bahrain but Sepang got the nod likely because of its readiness and lack of legal complexity.

As geopolitical tensions continue in West Asia, which hosts multiple grand prix Saudi Arabia, Abu Dhabi, Qatar and Bahrain it is not beyond the realm of possibility that F1 would look for substitute tracks in the future as well.

The earlier BIC is brought up to speed, and regulatory certainty assured, there is always the possibility of the Indian GP sneaking a place on the F1 calendar if issues flare up elsewhere.

FANS OF SPEED

The good news is that F1's popularity in India, like elsewhere in the world, has taken off in the last decade or so, especially after the popular Netflix series Formula 1: Drive to Survive. Liberty Media's concerted social media push has also helped attract more casual fans to the sport, both in India and around the world. The grand prix in Qatar, Bahrain, Abu Dhabi and Singapore have had a history of attracting a significant number of Indian fans.

Young Indian racers like Atiqa Mir are excited about F1's possible return. "It would be great to witness Formula 1 live in India," she says, "My generation hasn't seen it. The last race was back in 2013; before I was born."

Mir is confident that F1 would return before 2030, citing Union Sports Minister Mansukh Mandaviya's enthusiasm to bring the championship back. When she met him in June, Mandaviya told her that he hoped to see F1 back in India by 2028 and even joked that he was waiting for her to grow up and join the grid.

Adani says, "The Buddh International Circuit will demonstrate that the country has both the infrastructure and the audience, especially Gen Z, for world-class motorsport."

For that, India will have to reverse its track record. The race day attendance for the 2011 Indian GP was 110,000. It fell to 85,000 in 2012 and further to 61,000 in 2013. But then the sport wasn't as popular as it is now.

India has work to do to build talent and institutions around motorsport.

India's motorsport governance has not been in the pink of health, with the latest elections to the Federation of Motor Sports Clubs of India (FMSCI) being set aside by the Madras High Court, with a ruling that the federation must conduct fresh elections.

FMSCI president Arindam Ghosh says it is important to have Indian drivers at the top to make sure that interest in motorsport sustains in the long term. When asked where India is currently on that journey, he says, "We haven't started yet. Somewhere we have to start, we don't have time (to wait around)."

FMSCI will need to sort itself out to make a meaningful difference to the efforts to not just bring F1 back, but also to improve the state of grassroots motorsport in India.

Others who have been associated with motorsport in India also stress on the importance of investing for the long term. Anshuman Singhania, MD, JK Tyre, which has supported motorsport in the country over the years, says, "F1 can provide visibility, but its longer-term value for India would depend on whether it helps build a stronger and more sustainable ecosystem beyond the race itself."

Gautam Singhania, chairman & MD, Raymond Group, too, reckons that the bigger opportunity is to use F1 as a catalyst to build a world-class motorsport ecosystem by "developing Indian drivers, engineers, technology manufacturing and talent". "India should not just host an F1 race we should build a motorsport industry," he says.

While most of the chatter is around the return of F1 to BIC, there has also been speculation around other cities, including Bengaluru, Hyderabad and Ahmedabad. The last project, which has now been shelved, sources say, involved a street circuit around the GIFT City and had the likes of German track designer Hermann Tilke visiting to conduct a viability study.

The latest city to throw its hat in the F1 ring has the deepest motorsport heritage in India Chennai. Just last month, Tamil Nadu Chief Minister C Joseph Vijay announced a Motor Sports City in the state, which would also have a race track capable of hosting F1. Details of the project have yet to be shared, but those in the know suggest that the land already acquired for the cancelled Parandur airport project may be repurposed for the motor city.

Tamil Nadu has a proud legacy in motorsport, with two tracks approved for its lower tiers-one in Chennai and the other in Coimbatore. India's two F1 drivers, Narain Karthikeyan and Karun Chandhok, both spent their formative years in the South.

The buzz is building, on parallel tracks, from Chennai to Greater Noida. The race car engines have yet to fire again in India, but as Karun says, "It is great to finally have some noise around motorsport in India."