Also, in the state of Andhra Pradesh, Chief Minister Chandrababu Naidu reserved 1,500 acres (610 ha) of land near the airport at Hyderabad.

[7] Formula One commercial rights holder Bernie Ecclestone expected India to host a Grand Prix within three years, aiming for locating at either Hyderabad or Mumbai.

[9][10] Both projects then were declared "dead" in the second half of 2004, when Mumbai's government decided "not to waste money on car fumes while there are more serious issues",[11] and the Hyderabad location was converted to an IT park for technology companies.

In 2005, Narain Karthikeyan was due to demonstrate a Jordan Grand Prix car in Mumbai, but the road proved to be too bumpy.

[16] Following months of negotiations, the Indian Olympic Association (IOA) and Ecclestone announced in June 2007 a provisional agreement for India to host its first Grand Prix as a part of the 2009 Formula One season.

[23] In October 2008, the Renault F1 team showcased their car on a tour across all the sites which were previously linked to a Formula One circuit in India, except Mumbai: Gurgaon, Lucknow, Bangalore, Hyderabad and Kolkata.

[31] The race coincided with the important Diwali holiday, when consumer spending is typically at its highest and many people are traveling, which further improved economic prospects.

The Indian Grand Prix was cancelled for the second consecutive year following tax disputes between the FIA and the Uttar Pradesh government.

[32] The government of Uttar Pradesh, led by the then Chief Minister Akhilesh Yadav said that F1 is not a sport, but entertainment and levied taxes on the event.