In today’s Finshots, 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.

The Story

On October 27, 2013, Sebastian Vettel stepped out of his Red Bull, dropped onto his knees, and bowed to his RB9 racecar on the main straight of the Buddh 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 center of Formula 1.

This image still circulates among the OG F1 fans – Vettel kneeling before his car at a circuit carved out of Greater Noida, designed by Hermann Tilke, the architect behind many of Formula 1’s global venues.

Drivers loved the sweeping Turn 10–11–12 complex. Teams praised the elevation changes. And the FIA (FIA stands for Fédération Internationale de l'Automobile, which is the governing body for motor sports), too, had no sweeping complaints about the safety or the layout. By all sporting measures, the Indian Grand Prix worked.

So, why did it disappear after just three races?

You see, this was primarily because of taxation trouble. The Jaypee Group, which built and hosted the race at Buddh 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 1 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 customs 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. We wrote about this in an earlier story here.

However, the story may not be over. 

With the Jaypee 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 Formula 1 back to India.

Formula 1, 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 races in Miami, Austin, and Las Vegas. Middle Eastern governments also treat F1 as a ‘strategic asset’. So, the bar for entry now is, in fact, higher.

So what would it really take to bring F1 back to India?

The first and most obvious issue is economics. F1 races are not self-sustaining ticketed events. Governments or sovereign funds typically underwrite them because the hosting fee alone can cost $20-60 million. Saudi Arabia, Qatar, Abu Dhabi, and Singapore treat F1 as an 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 strategic infrastructure, similar to how other countries approach it. Without that backing, the financial risk remains too concentrated.

Second is taxation. As we mentioned earlier, the Indian Grand Prix was earlier disbanded because of taxation troubles. This has since been cleared, with motor sports 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 organisers commit again.

To understand this, recall what happened the first time. Authorities argued that Formula 1’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 treatment must be predictable, direct tax obligations must be clearly defined, 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 Formula 1 contracts typically run for three to ten 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 sport back. Sports Minister Mansukh Mandaviya recently spoke to officials from the Yamuna Expressway Industrial Development Authority (YEIDA), which now controls the circuit. He said that the long-term management of the Buddh International Circuit could be handed over to a professional sports management company.

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 deep capital. A group like this is structurally better positioned for the operational complexity that Formula 1 demands.

This will also, in turn, treat how the asset is treated on paper. Earlier, the 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 the tax confusion in the first place.

The third issue is infrastructure.

Formula 1 today is a weekend-long spectacle built around hospitality, concerts, luxury tourism, and corporate networking. Cities like Las Vegas and Miami integrated 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. Airport capacity, seamless transport corridors, five-star hotel availability, corporate hospitality suites, 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 ecosystem could materially strengthen India’s pitch to Formula 1.

That said, the fourth issue is the F1 calendar itself.

Formula 1 now runs a 24-race calendar. Teams have repeatedly expressed concern about logistical strain and travel fatigue. 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 Grand Prix 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 Formula 1’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. 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 commit 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 needed to make F1 work, there are still a few hurdles it must overcome before it can bring F1 back to India.

But if the model resembles 2011 to 2013, 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.

Until then…

If you found this story about the Indian Grand Prix interesting, feel free to share it with your friends, family or even strangers on WhatsApp, LinkedIn or X.

How Strong Is Your Financial Plan?

You've likely ticked off mutual funds, savings, and maybe even a side hustle. But if Life Insurance isn't a part of it, your financial pyramid isn't as secure as you think.

Life insurance is the crucial base that holds all your wealth together. It ensures that your family stays financially protected when something unpredictable happens.

If you’re unsure where to begin, Ditto's IRDAI-Certified insurance advisors can help. Book a FREE consultation and get honest, unbiased advice. No spam, no pressure.