'Better late than never': Why did F1 leave India, and why is it back on the agenda?

NEW DELHI: Sebastian Vettel won the 2013 Indian Grand Prix, completing a hat-trick of victories at the Buddh International Circuit. It was also the day he sealed his fourth Formula 1 world championship. However, it turned out to be India's last Formula 1 race.The Indian Grand Prix ran for three years, from 2011 to 2013, but the race was suspended in 2014 and later disappeared from the calendar amid a tax dispute.Thirteen years later, the government has put Formula 1 back on its agenda.The Sports Ministry has formed a task force led by NITI Aayog's Yugal Kishore Joshi to work on the revival and development of Formula 1 and motorsports in India.

The task force will assess the motorsports ecosystem, review the challenges that affected the sport in the past, and examine the feasibility of hosting a Formula 1 race, with a target of a possible return by 2028.But before India can look at a new Grand Prix, there is a question from the previous one that still needs answering: why did F1 leave India after just three races?Three Indian Grands Prix and a tax disputeThe Buddh International Circuit was built in 2011 and was designed by German engineer Hermann Tilke.The dispute centred on the taxation of Formula 1 and its commercial activities in India.

A key question was whether F1 should be classified as a sport or an entertainment business under Indian tax laws. The issue affected tax exemptions, customs duties and payments between race promoter and Formula 1's commercial rights holder.In 2017, the Supreme Court ruled that Formula 1's commercial rights company had a permanent establishment in India, making income linked to its Indian operations taxable.The ruling complicated the tax position and the financial obligations surrounding the Indian Grand Prix.

Liberty Media, which acquired Formula 1's commercial rights in 2017, reportedly set aside USD 14.8 million to settle the tax liability.The problems, therefore, went beyond the cost of staging a race. The tax treatment of Formula 1, the movement of equipment across borders and the commercial structure surrounding the event had become major obstacles.The episode exposed a fundamental challenge for India: hosting a global sporting event requires more than a world-class venue.

The regulatory framework, taxation rules and contractual arrangements must also work for an event that operates across international borders.Government takes another lookThe Sports Ministry's task force is now being asked to examine those problems and assess whether the conditions are different enough for India to try again."Basically, the task force will look into the possibilities and advise on how to move forward.

It will assess the current situation, learn from the past, and identify the best way to take things forward, particularly in terms of development," FMSCI president Arindam Ghosh told TimesofIndia.com.The exercise could help establish what needs to change in the way India approaches international motorsport, from policy and taxation to operational clearances and the development of the wider racing ecosystem.Why now, after 13 years?Ghosh pointed to the growth of motorsport and the government's interest in developing the sport in India."Better late than never.

Motorsport is gaining significant global popularity and is becoming increasingly prominent across the world. With the sport also expanding into more Asian countries, this is the right time for India to explore its return. The government recognises the growing importance of motorsport, so why not look at bringing it back?" he said.The audience for Formula 1 in India has also changed considerably since the last race.Formula 1 and FanCode state that the Indian fanbase had reached 79 million by late 2025.

F1 CEO Stefano Domenicali said in June 2026 that the figure had risen to 98 million, with 20 million fans added in the previous year.India has not hosted a Grand Prix since 2013, but its F1 audience has continued to grow.That presents a different opportunity from the one India had when it first hosted the championship. A return could connect an established global sporting property with a much larger domestic audience, including younger fans who have followed the sport through digital platforms and streaming.But a larger audience does not automatically translate into a viable race.

India would still need to establish a sustainable arrangement with Formula 1, secure the necessary financial backing and ensure that the costs and regulatory obligations of hosting the event are manageable.Who will bring the race back?The government can address policy and taxation, but Formula 1's return would also depend on a promoter willing to undertake the financial and organisational responsibility of staging a Grand Prix.The Indian Grand Prix was organised by the original developers of the Buddh International Circuit, which hosted Formula 1 races in Greater Noida from 2011 to 2013.The ownership landscape has since changed.

The circuit's original parent group underwent insolvency proceedings, culminating in a?14,535-crore acquisition of its flagship company by a new owner.The change could bring a different set of possibilities for the circuit, although any F1 revival would depend on a viable commercial arrangement and the necessary regulatory clearances.That change raises questions about the future arrangements for the circuit and the organisation of a possible Grand Prix.

However, ownership of the venue is only one part of the equation. A race would also require agreement with Formula 1's commercial rights holder, a viable funding model, sponsors and broadcasting arrangements.Ghosh does not see sponsorship as the biggest obstacle."Not necessarily. The main reason was that no one took the initiative to bring Formula 1 back to India. Our economic conditions have improved significantly, so I don't think sponsorship will be a major problem," he said."Bringing F1 back would give a boost to the Indian economy, create opportunities in touri…