The Billion-Dollar Beat
By Arya Asthana

The billion-dollar beat: Economic symphony of concerts and live events

What if I tell you that the next big thing your city needs to boost its economy isn’t a new metro line, a tech park or an industrial corridor, it's just a Taylor Swift concert. While it may seem exaggerated at first, the statement holds substantial economic truth. Across the world, cities are discovering that music can move more than just hearts and emotions, it has the power to move markets. 

In the rapidly evolving media and entertainment sector, the live entertainment segment has emerged as a powerful economic catalyst for cities around the world. These live events not only attract massive crowds but also encourage spending in a variety of industries like hospitality, retail, transportation and other local government services. The result? Immense revenue generation and a redefined urban economy. 

For instance, in 2023, Taylor Swift Era’s Tour didn’t just break records, it redefined them. According to International Journal of Development Research, the US leg of Taylor Swift’s Eras Tour alone generated an estimated $5 billion in direct consumer spending. Some economists remarked that the pop star’s impact was significant enough to warrant a separate entry in national economic data. However, beyond the anecdotes, these figures reveal a compelling economic reality, popular pop icons, like Taylor Swift and Beyonce are no longer just music and entertainment figures. These music artists have transcended themselves into economic powerhouses capable of majorly affecting consumption, employment, revenue and growth in the cities they choose to tour. 

The rise of India’s concert economy

Keeping pace with the global strides, India is emerging as a rising star in the “concert economy”. Over the past few years, India’s concert economy has seen a massive boom with the organized live-event sector surpassing 12,000 crore and annual growth rate reaching 19%, as cited by an industry whitepaper published by the Ministry of Information and Broadcasting.  

This transformative growth is the culmination of economic and demographic drivers, social and cultural factors and the increased demand for immersive, large scale entertainment experiences. With rising income and exposure to global trends, India’s affluent and growing middle-class has latched onto live entertainment space like never before. The country’s youth are queuing up for a taste of live performances by international and Indian music stars. What was once an occasional live show now has transformed into a new cultural wave. Top artists like Dua Lipa, Maroon 5, Diljit Dosanjh, Sabrina Carpenter, Coldplay and Ed Sheeran enthrall young audiences in huge numbers. Their popularity is often driven by the influence of social media creating FOMO, “Fear of missing out”, also termed as the, ‘bandwagon effect”. This stands as compelling evidence that it is not only wealth or digitalization that fuels this breakthrough progress, but a new kind of audience that craves premium events and unparalleled  experiences. For the new generation or the “Gen Z”, attending a live concert has become more than just a night out, it’s a badge of identity and a shared moment in the collective memory.

The Ripple Effect

Concerts and live events have turned into economic spectacles for the host cities, offering benefits that extend beyond the immediate financial metrics, creating a ripple effect on the broader ecosystem. India's live music market is very vibrant and draws revenue from ticket sales, venue operations, sponsorship, merchandise, gig economy and associated spending on hospitality and transportation. Several studies suggest that large-scale concert tours rank among the highest revenue-generating events in the entertainment industry. For instance, when Coldplay performed in Ahmedabad in 2024, the city didn’t just host a concert, it hosted a booming micro-economy.The concert evoked a significant surge in India's local economies, with an estimated Rs. 641 crores in overall impact and attracted more than 2 lakh attendees. Local enterprises, ranging from hotels and restaurants to transport and retail, saw a major revenue increase, and Ahmedabad, known mostly for textile trade got a new identity as the new cultural hotspot worldwide.

 The indirect economic effects of the event are considered the secondary and sometimes less-tangible benefits of the event, but they are no less important to the local economy. These encompass employment generation, increased tax revenues, and the city’s brand and reputation becoming mainstream in the long run. Research has shown that major concerts and live music performances may lead to the creation of temporary job openings in hospitality, event staffing, and security industries. Participation in such high-profile concerts reflects the competency of a city in organizing international events which drives future tourism and foreign investment opportunities. The impact of Ed Sheeran’s 2025 India tour, including performances in cities like Delhi, Bengaluru, Shillong is particularly noteworthy. According to Hindustan Times, Shillong’s state government has invested Rs. 4,000 crores in music tourism infrastructure, aiming to double the state’s GDP and make it a USD 10 billion economy by 2028. According to The Economic Times, India’s concert economy is expected to generate nearly 12 million temporary jobs by 2032, bringing revolution not only in the entertainment sector but also driving employment and economic growth, especially in Tier 2 and Tier 3 cities.

More than music

 Further, live events have redefined audience engagement bringing people from diverse culture, style, origin under a single roof. From international concerts to multi-genre festivals, these gatherings have made people embrace and celebrate diverse culture, creativity, style and identity together proving that music and rhythm is the single thread that binds us all together.

However, as the stage expands so do the challenges. In this industry it’s “scalping”, i.e., the illegal reselling of tickets at exorbitant prices, which has become a major issue with tickets going as much as 10x their original price. Learning from other countries, India could explore the possibility of tighter regulations and transparent ticketing mechanisms.

Future forward

As we navigate through an era where India is becoming a leading nation in the “concert economy” or the “experience economy”, concerts are not just about music they are about meaning, mobility and momentum. This intersection of culture and commerce has never been this powerful. Thus, it becomes imperative for the government, policy makers and potential investors to recognize and seize opportunities that this evolving sector has to offer. Embracing innovative models, better infrastructure, sustainable practices, collaborations, global inclusivity will not only stimulate India’s growth in this sector but also position India as a global leader in the entertainment arena proving that sometimes a concert can achieve what a policy cannot.