Quit Horsing Around

Compare this with the global statistics. In a 2005 survey conducted by the American Horse Council, the horse industry in the US generates 102 billion, and at 20.8 billion, thoroughbred racing is the single largest contributor to the country8217;s GDP.

According to an Australian Racing Board estimate, horse racing generates 7.7 billion annually in the country. In the UK, the horse industry employs over 15 million people, the second largest employer after the National Health Services. In Ireland, horse exports exceed pound;257 million, while Hong Kong earns 1.2 billion in taxes from horse betting.

Which is perhaps why the apathy in India seems more striking. Despite the well-heeled people in the industry, the government continues to neglect, or worse, is ignorant of the potential of earning valuable foreign exchange through the export of horses. For instance, an unraced Chettinad stud-bred broodmare created a record of sorts when it was sold for 225,000 in a US auction in 2000-01, while Saddle Up, an Indian race horse, earned 472,000 in foreign appearances in 2002.

8220;If the government is a bit more realistic in its tax structure, it will help the breeders improve their stock and match the quality of the West,8221; says Vivek Jain, media and marketing head of the Royal Western India Turf Club Mumbai, who has over the years brought in more visibility to horse racing.

STRATEGIC SURRENDER

Ironically, India has a natural geographical advantage as far as horse breeding and markets are concerned. Some Gulf and Asian countries are perennial importers of horses and those like Bahrain, Kuwait and Qatar spend almost four times the amount in transporting horses from the US, Australia and England than what they would if they were to do it from India.

Says Anil Mukhi, a Canada-based race analyst: 8220;The demand in countries like Singapore, Malaysia, Macau, Hong Kong, UAE and the Philippines exceeds 1,000 heads every year.8221; Mukhi has even suggested setting up a market base for Indian horses and sees an urgent need to stave off challenge from China and countries like Australia and New Zealand that cater to the Asian market.

India is also strategically located as far as breeding is concerned. As countries like Singapore, Indonesia and Malaysia are all on or just a degree above the equator, they are hot and humid, a weather not conducive for horse breeding. Horses need dry weather conditions because their bigger nostrils allow higher intake of oxygen, and if the air is humid, it affects their lungs.

On the other hand, temperatures in Gulf countries soar to 50 degree Celsius, making it virtually impossible to breed horses for racing. With temperatures in north and central India reaching a maximum of 40-45 degree Celsius and no proximity to the sea, the weather is ideal for breeding.

CROSSING THE HURDLE

Besides the government8217;s indifference, a big problem is the mindset. Horse-racing is considered a vice in most parts of India and remains an elitist sport. On the economic front, a major hurdle is the lack of market.

8220;The breeders are the consumers as well. The returns from horses can be meagre and it8217;s a vicious chain because stagnation in the industry leads to limited demand,8221; says Pawan Bhatia, owner of the Nakul stud farm in Gurgaon. 8220;The taxes on betting money need to be reduced, and most importantly, the Equine Development Board, which hasn8217;t met in 30 years, needs to be revived,8221; he says, adding that the government doesn8217;t even have a provision for depreciation of horses.

K.V. Singh, a Jaipur-based stud farm owner agrees. 8220;It is not financially feasible to sustain a stud farm,8221; he says. 8220;Financial schemes and bank loans should be facilitated to encourage people to take up breeding or to help owners make fresh investments.8221;

Considering that India is self-sufficient in the sector, it8217;s time the government provided the kickstart it needs for a smooth ride.