Does India have a chance of hosting a Grand Prix after tax problems and 13-year absence

According to a Reuters report, the Indian Grand Prix could return to the Buddh International Circuit, outside New Delhi, more than a decade after disappearing from the calendar. The country hosted Formula 1 for three consecutive seasons between 2011 and 2013. However, disputes involving taxation and the regulatory status of the event prevented the race from continuing.

Sports Minister Mansukh Mandaviya has now met key stakeholders to discuss reviving the Grand Prix and developing motorsport across the country. Those involved reportedly included representatives from India’s motorsport federation and the Adani Group, which is working to take control of the company that previously owned the Buddh circuit.

Mandaviya said a dedicated task force would be established to investigate the barriers preventing Formula 1 from returning. Untangling India’s complex tax system is expected to be one of the task force’s most important responsibilities.

A source from the Indian sports ministry told Reuters: “The task force will examine the challenges affecting the revival and growth of motorsports in the country, including Formula 1, with a specific focus on taxation-related issues, regulatory aspects, infrastructure, and other policy interventions...”

India’s tax authorities will be represented on the panel, reflecting the importance of finding a workable classification for Formula 1. The government’s leading policy think tank has also been asked to coordinate discussions between ministries and reduce administrative delays.

Taxation became a major problem during Formula 1’s previous spell in India. The event was treated differently from many other international sporting competitions, creating additional costs and uncertainty.

Any successful revival will require clearer regulations, stronger government support and an agreement that is commercially sustainable for Formula 1 and the promoter.

The Adani Group could play a central role in the proposed comeback. The conglomerate is in the process of taking over the company that previously owned the Buddh International Circuit, although it did not respond to Reuters’ request for comment.

Karan Adani, Managing Director of Adani Ports and Special Economic Zone Limited, has nevertheless confirmed his involvement in the project. He said he was “personally engaged” in efforts to bring Formula 1 back to India.

A new promoter with substantial financial backing would address one of the key requirements identified by Formula 1 chief executive Stefano Domenicali.

The Buddh International Circuit remains India’s most obvious Formula 1 venue. The track was designed by Hermann Tilke and hosted all three previous editions of the Indian Grand Prix. However, the circuit and its supporting infrastructure would need to meet Formula 1’s current operational and commercial requirements before a return could be confirmed.

India offers Formula 1 access to one of the world’s largest populations and a rapidly developing sports market. However, interest alone will not guarantee the race’s return.

The government, prospective promoter and Formula 1 must first agree on taxation, ownership, infrastructure and the long-term organisation of the event.

A 2028 comeback would mark 15 years since India last hosted a Grand Prix. The task force’s progress will now determine whether the Buddh International Circuit can finally secure a sustainable second chance on the Formula 1 calendar.