Capitalism to Socialism The way ahead for Indian Racing Industry

Socialism first started in Russia and was spread worldwide, but today China is the only country left in the world with communist ideology. Market forces are predominant and common person is no more given much consideration the way it was in socialist countries. Capitalism is the norm worldwide.

Indian racing industry is going through challenging times. It started with demonetisation started by Modi Government and then GST, both these tremors have shaken the industry in such a way, that it is on the verge of collapse. There are approximately only 5000 approved owners in 8 turf clubs of India. In a 130-crore population, only 5000 people having ownership of race horses indicates height of capitalism. In India, Racing Industry is predominantly in a closed -limited group of people. For instance, people who are filthy rich like Mallays, Khaitans, and Ramaswamys. Has remained close group and never permitted any common man to become part of the industry. Even at the spectator level, the attendance in the race courses is dwindling day by day and the turf clubs have not made any attempt to make this sport affordable for the masses.

Today developments in racing cannot be seen, as the industry is not considering the common man to enter and be a part of this sport. Not necessarily at the ownership level but as a spectator also. Betting tax that the govt has kept, the GST of 28 % on investment is going to destroy, not only the betting industry but turf clubs as well. Collective efforts were taken by all other sectors to reduce the impact of GST by having proper representation to government. This collective effort is lacking in the Racing industry. Unfortunately, no efforts are being made to reduce GST or to give proper representation to the government.

All over the world the focus of MNC companies, Big Corporations target Indian Middle-class population. Currently in India maximum purchasing power is with the upper middle-class population. Even the FMGC company’s advertisements are made to target middle-class audiences. The Mall culture in the cities is growing exponentially not only in the major cities like Mumbai, Chennai Kolkata but also the 2- tier cities like Surat, Mysore, Bhuvneshwar. The case of booking of 125 Mercedes Cars in one single day at Aurangabad is a pointer of purchasing power of well to do families in India. It is the numbers that are very large that will make the difference.

The time has come for the racing industry to go for socialism culture to survive. Turf clubs should make efforts to involve common people to attend racing. So that betting also increases, and it is necessary that proper representation should be made for imposing of 28 % GST on club’s commission and not on total investment bets. If required court proceedings can also be initiated.

The entire cash rich racing industry has been affected considerably in the last one year. Even though Indian racing thoroughbreds have the capability to compete in International market like Singapore, Malaysia, Dubai etc. due to cash transactions export was not considered as a viable option by stud farms. Most of the turf clubs have very few members and the management are also with very limited people who are managing affairs for long time. Individual interest supersedes in such conditions, which was evident in the case of Bangalore turf club. Interest of the turf club, Racing and the people who are earning their livelihood on racing was overlooked and unnecessary confrontation with the government resulted in the loss of almost 2 months of racing.

Syndicate Racing or Partnership racing was never promoted in any of the turf clubs. In foreign markets syndicate racing is happening on/ a very large scale. Earlier due to different rates of taxations in states it was bit difficult though not impossible. But now GST has brought all the states on common platform. Hence syndicate registered in one state will be able to compete very easily all India basis. At least differential taxation issue will be a problem. Unfortunately, syndicate racing is not encouraged by turf clubs, owners, breeders of stud farms.

Horse racing and Cricket are the legacy of British Raj. Cricket is not played all over the world. Maximum 10% countries play cricket but in India it is greatly popular and IPL Matches is the culmination of popularity of cricket among the common people. Entire financial calculations of IPL are dependent on the viewership of common people. Similarly, popularising horse racing industry by common masses will be beneficial in the future. This is a golden opportunity for revival of Indian Racing industry. It’s time for Indian Racing Industry to become socialist in nature. Indian Middle-class numbers are Hugh. Approved owners on all India basis if increased from 5000 to even 50000 the amount of money which will be brought in the industry will be huge. It’s time for introspection and action for racing experts, turf club authorities and stud farms owners, breeders.

First auction of race horses is happening in Mumbai on Feb 12, Feb 13 after long time and RWITC should allow any person to purchase horses in the auction. Non-approved owners can deposit a sum of money with turf club and Bloodstock agents should be allowed to bid on behalf of common people not connected or exposed to racing. And people wishing to join- syndicate racing should be allowed to purchase horses also.

Ravi Gowande
Pedigreestar