This blog post is a detailed rationale behind the smallcase Incredible India. This smallcase is an intelligently weighted portfolio of stocks serving the travel, tourism & hospitality segments in India.
India’s rich cultural heritage and its magnificent monuments attract a large number of tourists from across the world. The country offers a diverse portfolio of niche tourism products like eco-tourism, rural tourism, religious attractions, medical tourism and wellness tourism that involves ayurvedic and spa therapies. As a result, the Indian tourism industry is growing at a fast pace and is one of the key growth drivers among the service sectors in India. In 2016, the industry’s total contribution to GDP was 9.6% and it generated 3.7 crore jobs in the country. The tourism and hospitality sector’s direct contribution to GDP was USD 7153 billion in 2016.
Broadly tourism and hospitality industry includes the following:
There are multiple factors driving the growth of India’s tourism industry:
Some of the notable trends in the industry and initiatives taken are:
- India’s image as the seat of spiritualism and widespread practice of ayurveda, yoga & naturopathy makes it a hot favourite amongst many international tourists.
- E-tourist visa facility, visa issued electronically, which allows tourists and short term travellers to get an Indian visa quickly and easily on-line, is now available for citizens of 176 countries. The facility has yielded spectacular results with number of foreign tourist arrivals in 2016 jumping up by 142.5% to 10,79,696 compared to previous year.
- Tourist police task force has been established by various state Governments for ensuring safety and security of tourists.
- Central Government has launched the “Pilgrimage Rejuvenation and Spiritual Augmentation Drive” to enhance facilities and boost infrastructure at pilgrimage centres across India.
- Under the “Swadesh Darshan” scheme 13 thematic circuits like Himalayan circuit, Buddhist circuit, wildlife circuit etc. have been identified for development. Under budget 2017, Rs.952 crore has been allocated for the same.
- In Budget 2018, Rs 2,150 crore was allocated to the Tourism Ministry, a jump of 21% compared to the previous year.