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"Swiftonomics" refers to the significant financial impact of superstar Taylor Swift on various countries' economies. Her concerts are so influential that they've begun to affect the GDP of these nations. For instance, following her concert in Singapore, the country reported a year-on-year growth of 2.7 percent in the first quarter, with the Monetary Authority of Singapore (MAS) noting that over half of the attendees were from abroad.

In 2023, Swift's "Eras Tour" became the highest-grossing tour on record, generating $1 billion in revenue. According to a report by Nomura, the tour has driven $5 billion in consumer spending in the US alone. Swift's fans flock to cities hosting her concerts, significantly boosting lodging, food, transportation, and merchandise spending. In fact, airlines have even added extra flights to accommodate the surge in fan travel.

India is poised to witness a similar phenomenon with the upcoming Coldplay concert, which has generated a response that rivals SME IPOs in the country. Reports suggest that for approximately 150,000 available tickets, there were nearly 1.3 million visitors to the entertainment and ticketing platform BookMyShow. This surge in traffic caused the platform to crash seconds before ticket sales went live. Due to this overwhelming demand, Coldplay has announced an additional venue for their performance.

India has seen the advantages of such large-scale events over the past couple of decades, especially with the advent of the Indian Premier League (IPL) series. The economic benefits have spilled over into other sports, turning them into lucrative events. Even within cricket, district-level leagues have become profitable and attract significant attention, showcasing the potential for widespread economic impact across multiple sectors.

The event management industry is rapidly evolving into a significant force in India. Zomato's recent acquisition of Paytm's event ticketing arm for Rs 2,048 crore is a testament to this growth. The food delivery giant is now set to launch 'District', a new app that will enable customers to discover and book restaurants, as well as purchase tickets for movies, sports events, live performances, and more, showcasing the industry's rapid and impressive growth.

Currently, BookMyShow dominates the market with a 75 percent share. According to brokerage firm Elara, India's ticketing business — which includes sports, live events, and cinema — is valued at about Rs 1,500 crore, based on a 7 percent convenience fee typically charged by ticketing platforms. Zomato aims to capture this lucrative market, projecting ticket sales worth Rs 20,000 crore annually within the next two years.

As disposable incomes rise, India is poised to host an increasing number of such large-scale events. The trickle-down benefits of these events are well documented, making it an industry that deserves further encouragement and support.

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Technical Picks: Canara Bank, Gujarat Gas, Elecon Engineering Company.

Shishir Asthana
Moneycontrol Pro