Formula 1, the world’s premier annual sports championship, is considered one of the riskiest sports in the world due to the extreme combination of speed, precision, and unpredictability. It pushes humans and machines to the absolute limit, where fractions of a second decide between glory and disaster.
From 1950 (start of F1 World Championship) to the 1990s, dozens of drivers lost their lives, especially in the 1960s and 1970s, when cars were fast but safety was minimal. Between 1994 (Senna/Ratzenberger) and 2014 (Bianchi), no F1 driver died in a race — the longest fatality-free period in the sport’s history.
Over the decades, safety has improved dramatically. Today, F1 is considered far safer, with accidents often resulting in only minor injuries, even at speeds over 300 km/h.
Like F1, business is a risky endeavour because it combines speed, high stakes, and uncertainty—where a single wrong decision can lead to significant losses or even collapse. Financial disasters have devastated many businesses, both well-known and unknown, such as Atlas Jewellery and its promoter, Atlas Ramachandran and V. G. Siddhartha of Café Coffee Day. Business losses killed many business promoters prematurely. Many film producers who built stars on screen ended their lives in obscurity and poverty. During their prosperous times, these businesses contributed crores to the national treasury through direct and indirect taxes, provided employment to thousands, and fostered economic growth. Yet, when they fall into financial ruin, there is no mechanism to support or revive them.
We have witnessed large-scale crowdfunding campaigns for ‘blood money’ to save Indian lives abroad from the death penalty. But such compassion has never been extended to a business or its promoter in crisis. Campaigning for aid would be an insult to the dignity of a proud entrepreneur. What we truly need is a FINANCIAL DISASTER RELIEF FUND—a structured, dignified safety system to support businesses facing genuine financial crises, excluding those involved in fraud or wilful default.
Every business collapse is an economic tragedy: it disrupts the livelihoods of many, reduces GDP contributions, and leads to massive losses in tax revenue. To mitigate this, we propose establishing a FINANCIAL DISASTER RELIEF FUND that provides direct assistance to businesses unable to secure support from financial institutions during a financial crisis.
This support could be administered through the Prime Minister’s or Chief Minister’s Disaster Relief Funds, which are generously funded by the business community itself. Alternatively, a new fund could be established under the Ministry of Corporate Affairs, with 30% of existing Corporate Social Responsibility (CSR) funds redirected, without introducing new taxes.
Under this system:
- A business in crisis would be eligible to receive interest-free loans equal to 25% of the total direct taxes it has paid.
- The remaining 25% could be offered as low-interest loans with repayment terms of 5 to 8 years.
- These loans would be disbursed through banks, with service charges covered by the Financial Disaster Relief Fund.
Such a framework would offer timely support to struggling businesses and their stakeholders—promoters, employees, and investors—helping them recover and re-contribute to the economy.
Financial disasters can strike any business at any time. A Financial Disaster Relief Fund is not charity—it is a strategic safety net that protects our economy, honours our entrepreneurs, and preserves livelihoods. It is time we institutionalise support for the very businesses that once built and sustained our nation.