Bengaluru, April 29, 2025 — Professor Mayank Shrivastava from the Indian Institute of Science (IISc) Bengaluru has sparked a national debate by suggesting that a 40% tax on the profits generated by the Indian Premier League (IPL) could add ₹15,000 crore to government coffers over the next three years. This amount, he argues, is sufficient to establish 10 new Indian Institutes of Technology (IITs) or significantly strengthen India’s deep-tech research ecosystem.
In a detailed analysis shared during a public lecture at IISc’s Department of Electrical Engineering, Professor Shrivastava criticized the current tax framework that grants generous exemptions to the Board of Control for Cricket in India (BCCI) and IPL franchises. He pointed out a stark disparity: while entertainment events like IPL receive substantial tax benefits, premier research institutions in India continue to pay hefty Goods and Services Tax (GST) on essential laboratory equipment and components.
“It is ironic,” Shrivastava remarked, “that in a country aspiring to be a global leader in technology and innovation, cricket—a form of entertainment—is subsidized, while institutions that build the future are taxed.”
According to Professor Shrivastava, the IPL generates enormous profits annually through broadcasting rights, sponsorships, ticket sales, and merchandising. “If we consider the IPL ecosystem’s annual profits and levy a 40% tax, the government could easily mobilize ₹5,000 crore each year. Over three years, that amounts to ₹15,000 crore—an amount transformative enough to fund 10 IITs or accelerate India’s push in deep-tech sectors like semiconductors, artificial intelligence, and quantum technologies,” he explained.
A Question of Priorities
Professor Shrivastava’s comments have ignited broader conversations around India’s fiscal priorities. Research institutions, he said, face substantial challenges in acquiring state-of-the-art equipment due to high taxation. “A simple semiconductor testing tool can attract up to 28% GST. This not only increases costs but also slows down critical research work,” he added.
Highlighting the irony, Shrivastava said that while cricket tournaments are celebrated as symbols of India’s soft power, the country’s hard power—its technological and scientific prowess—is being held back by insufficient funding and taxation hurdles.
Industry Reactions
The academic’s proposal has drawn mixed reactions. While many in the scientific community have endorsed Shrivastava’s viewpoint, suggesting that the move could bridge the long-standing funding gap in research and development, stakeholders from the sports industry expressed reservations.
An executive from one of the leading IPL franchises, speaking anonymously, said, “IPL is not just entertainment. It has created thousands of jobs, fueled the growth of ancillary industries like tourism and hospitality, and enhanced India’s global brand image. Penalizing it with high taxes could have unintended consequences.”
On the other hand, Dr. Ritu Mehra, a senior researcher at the Indian Institute of Technology Delhi, praised the idea. “Professor Shrivastava is absolutely right. We struggle to maintain research labs due to funding issues, while entertainment continues to thrive without meaningful contribution to technological progress. It’s a matter of setting national priorities correctly,” she said.
Government Response
When asked about the proposal, a senior official from the Ministry of Finance, requesting anonymity, said, “We are aware of the concerns raised. India needs to balance promoting cultural and entertainment sectors with boosting research and innovation. All suggestions are considered when designing taxation policy.”
The Road Ahead
As India aims to become a $5 trillion economy and a global technology hub, the debate over how resources are allocated is becoming increasingly critical. Professor Shrivastava’s suggestion calls for a serious rethink of the policies that prioritize short-term entertainment gains over long-term scientific advancement.
Whether or not the government acts on his proposal, his comments have certainly reignited an important discussion on India’s path to becoming a knowledge-driven economy.
Sources:
- Public lecture by Professor Mayank Shrivastava, IISc Bengaluru (April 2025)
- Interviews with IISc faculty and industry stakeholders
- Ministry of Finance internal sources (requesting anonymity)
