Why Adani Group is keen on bringing back Formula 1 to India

As the National Company Law Appellate Tribunal (NCLAT) clears the decks for Adani Group’s Rs 14,535 crore acquisition of beleaguered Jaiprakash Associates Ltd, the focus has now shifted to Jaypee’s prized assets including the Buddh International Circuit, India’s only Formula 1 (F1) track that hosted three Grand Prix races from 2011 to 2013.

That the Adani Group is keep on bringing back F1 races to India is well known. Karan Adani, the eldest son of billionaire Gautam Adani and managing director of the conglomerate’s ports’ business, is personally driving the effort to bring back the Indian Grand Prix. “I am very excited because with Jaypee, the Buddh circuit comes as part of the deal. I am personally driving it and engaged in terms of bringing Formula 1 back into India. I think India has a lot of potential. There is a lot of following in Formula 1 from India,” Adani said in February this year.

Even though Adani is passionate about hosting F1 races in India, it could take some time before Formula 1 cars vroom around the Buddh International Circuit racetrack. The FIA (Fédération Internationale de l'Automobile), the governing body of Formula 1, clarified that F1 will not be held in India in 2027 as organising and delivering races take time. This statement came after Union sports minister Mansukh Mandaviya said that there will be an F1 race in India in 2027 at the Buddh International Circuit and that the government will help in getting tax benefits for the event. "Given the global situation due to the ongoing war, India is being seen as a safe and viable venue for sporting events, including F1," Mandaviya said, referring to the war in West Asia, which hosts four Grand Prix events in Saudi Arabia, Qatar, Bahrain and Abu Dhabi.  

F1’s taxation troubles in India

After three years of successful run until 2013, Formula One decided skip India owing to taxation issues even though its contract with Jaypee has two more races left. The biggest sore point was classification of F1 races as entertainment and not as sport, putting the event under higher entertainment tax bracket. India’s tax authorities said that Formula One Management (FOM), the commercial and operational arm of F1 responsible for broadcasting, scheduling, promoting, and logistical operations, had a “permanent establishment” in India during the race. This meant that payments made to FOM (race hosting fees, broadcasting revenue, etc.) were fully taxable in India. In 2017, Formula One had to set aside $14.8 million after India’s Supreme Court ruled that taxes should have been paid from the hosting fees it received from Jaypee Group.

Why F1 matters

Formula One is arguably the most expensive sporting event and the most recognized motor racing competition. The Formula 1 calendar features 24 races held across 21 countries spanning five continents. Each F1 race is called a Grand Prix. The 2025 Formula One World Championship featured a record 24 races. Of these, three were held in the United States and two in Italy.  The current Formula 1 grid consists of 11 teams and 22 drivers from across the globe, with each team entering two cars. Formula 1 stretches for three days, usually Friday, Saturday and Sunday. The Grand Prix happens on the last day where drivers compete for points, fight for podium finishes, and aim to cross the chequered flag first to secure victory. While speaking with Business Today earlier in February, Sir Jackie Stewart, a three-time British Formula 1 World Champion, said it would be wonderful if F1 comes back to India, pointing out the record number of cars that get sold in India each year.

Will F1 help build brand Adani globally?

Adani Group has spread its wings around the world over the past few decades. Karan Adani-led Adani Ports already operates ports across Israel, Australia, Sri Lanka and Tanzania. While Formula One has immense global reach across several countries, only team sponsorship gives better recall as it can be utilised in all 24 races. Title sponsorship of a single Grand Prix has limited upside. When Jaypee Group hosted F1 races in India, Airtel was the title sponsor. Moreover, Adani Group’s core business portfolio such as ports and energy is not consumer-facing, leaving the room for other companies to sponsor the event if it ever happens.