India explores Formula 1 return as government reviews past tax hurdles
More than a decade after India last hosted a Formula 1 race, efforts are underway to explore the possibility of bringing the championship back to the country. The discussions are ongoing to address the tax and regulatory challenges that led to the Indian Grand Prix being dropped from the calendar after the 2013 season.
The focus of these efforts is the Buddh International Circuit, a purpose-built venue that previously hosted Formula 1 between 2011 and 2013. Officials are understood to be reviewing policy frameworks that previously made hosting the event financially unviable.
India made its Formula 1 debut in 2011, with the race quickly gaining attention for its modern infrastructure and enthusiastic crowds. The event was held annually for three seasons and became part of the latter stages of the championship.
During its short run, the Indian Grand Prix was dominated by Sebastian Vettel, who won all three editions driving for Red Bull Racing. Despite on-track success and international visibility, the race struggled to remain sustainable off the circuit.
The Indian Grand Prix was discontinued primarily due to financial and regulatory disputes rather than sporting or organisational shortcomings. Authorities classified Formula 1 as an entertainment event instead of a sporting competition, resulting in high entertainment and luxury taxes.
Additional complications included customs duties on imported racing equipment and delays linked to regulatory clearances. These factors significantly increased costs for organisers, placing long-term strain on the event’s business model. Although there were initial plans to pause the race briefly and return in subsequent seasons, the issues were never fully resolved.
In the years following Formula 1’s exit, India has hosted other international motorsport events, including a Formula E race and a MotoGP round at the Buddh circuit. While these events have helped maintain global motorsport visibility, they have not matched the scale or commercial impact of Formula 1.
With renewed discussions now taking place, officials are reportedly engaging with Formula 1’s commercial stakeholders to assess feasibility. Any potential return would depend on revised tax treatment, logistical assurances and long-term guarantees that address earlier concerns.
A return to the Formula 1 calendar is far from assured. The championship’s schedule has expanded significantly in recent years, leaving limited room for new or returning venues. Competition from newer circuits and established markets means India would need to demonstrate not just commercial potential but also regulatory stability and long-term commitment.
That said, India’s growing automotive sector and expanding fan base continue to make it an attractive proposition. Whether these factors translate into a confirmed race weekend will depend on how successfully ongoing negotiations bridge the gaps that ended Formula 1’s first stint in the country.
