After more than ten years off the Formula 1 calendar, the India government is stepping up efforts to bring this top motorsport event back to the Buddh International Circuit in Greater Noida. The Ministry of Youth Affairs and Sports is working to eliminate the tax burdens and red tape that previously hindered the Indian Grand Prix, sources told on Monday, February 2.
India demand to Revive Formula 1 Grand Prix
The Indian Grand Prix first took place in 2011 at the 5.125 kms Buddh International Circuit, located along the Yamuna Expressway in Uttar Pradesh. This race was a significant addition to the Formula 1 calendar, attracting large crowds and international attention. During its short run from 2011 to 2013, the race became a regular part of the late-season championship, with Sebastian Vettel winning all three editions for Red Bull Racing.
However, the excitement short-lived. Despite strong fan interest and a top-notch track facility, the Indian Grand Prix removed from the FIA Formula 1 World Championship after the 2013 season. This decision resulted from serious financial and policy conflicts between the organizers and the Indian government, rather than sporting issues.
Why the Formula 1 Grand Prix Was Canceled?
The main reason for this breakdown was a disagreement over taxes and regulations. The state government of Uttar Pradesh and central authorities classified Formula 1 as entertainment instead of a sporting event. This classification subjected the race to high entertainment and luxury taxes, significantly increasing the expense of hosting the event. This situation made it difficult to secure tax breaks and financial support that are usually available for major sporting events, straining the promoters’ budgets.
The problem worsened with customs duties and bureaucratic obstacles on imported racing equipment, which added millions in costs for teams and organizers. These issues worsened the financial struggles for Jaypee Sports International, the promoter of the event, which invested a considerable amount into building the circuit—reportedly over $400 million.
Although there was an initial plan for a short break in 2014 with a return in 2015, the Grand Prix never returned. The contractual and financial disagreements too significant to resolve, and the event officially canceled.
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