India’s Booming Concert Economy

Recently, Prime Minister Narendra Modi highlighted the growing importance of the concert economy in India, especially following the record attendance at Coldplay's concerts in Mumbai and Ahmedabad.

What is the ‘Concert Economy’?

• The 'concert economy' refers to the significant economic impact of live music events on various sectors, including hospitality, transportation, food & beverages, merchandise sales, and event management.
• It emphasizes how concerts go beyond being an entertainment experience, turning into an economic powerhouse that stimulates local economies.
• India’s Growing Concert Economy: India’s concert economy is growing rapidly. As per a report, the number of large concerts (those with over 5,000 attendees) is expected to reach 300 by 2025, marking a 50% increase from 2018.
• The revenue from concerts in India is predicted to reach Rs 1,000 crore by 2025, a 25% increase from current levels.
• In terms of global revenue from live events, India ranks 7th worldwide, ahead of countries like South Korea, France, and Australia.
  • Another report estimates that between Rs 1,600 crore and Rs 2,000 crore was spent on live events in India within just three months. If the concert sector continues to expand, private spending on live events in India could reach Rs 6,000-8,000 crore annually.

What Does the ‘Concert Economy’ Entail? 

The concert economy refers to the broad economic benefits generated by live music events. Beyond ticket sales, concerts lead to increased spending across multiple industries, providing a significant boost to local economies.

• Hospitality: Hotels in the cities hosting concerts experience a surge in bookings, often reaching full occupancy, especially in premium accommodations. This results in higher revenue from overnight stays.
• Transportation: Major concerts see a rise in bookings for flights, trains, and other modes of transportation. For instance, flight bookings to concert cities can soar by as much as 350%, while train bookings also witness significant increases.
• Food & Beverages: Restaurants, cafes, and food delivery services experience increased sales as concert-goers spend more on dining and snacks before or after the event.
• Merchandise: Concerts often generate substantial revenue from merchandise sales, including band T-shirts, posters, and other memorabilia.
• Employment: Large-scale events create job opportunities in event management, security, logistics, ticket sales, and more. The demand for temporary staff rises as the event nears, contributing to local employment.
• Event Management: Concerts require extensive planning, which leads to revenue for local event management firms and vendors involved in organizing the event, including sound and lighting technicians, security services, and logistics companies.