Tourism industry could double in size by 2029
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.
According to industry reports, India is ranked 8th in terms of the travel and tourism industry’s contribution to GDP. In 2018, the country earned $247 billion via travel and tourism. This amounted to 9.2% of the country’s GDP. The travel & tourism industry’s contribution to GDP is expected to grow by 7% each year until 2029. The industry is expected to grow to $511.9 bn by 2029, doubling in size. In 2018, $45.7 bn was spent towards capital investment in travel & tourism industry. This amount is expected to grow by 7.4% each year over the next 10 years.
Government is playing an active role in promoting the sector. The Incredible India 2.0 campaign was launched in 2017. The campaign seeks to put India as a high-end tourist destination on the world map. The Government has also identified 12 theme-based tourism circuits like the Himalayan circuit, Buddhist circuit etc and is developing them.
During his address to the nation on Independence Day, Prime Minister Modi had urged Indians to visit 15 tourist destinations within the country 2022. He said in recent “Mann Ki Baat” address that India’s rank in travel and tourism composite index had jumped to 34 from 65 over the previous 5 years. He urged citizens to work harder so that India would be a major tourist destination in the world by 2022.
The Incredible India smallcase consists of companies from the travel and tourism industry that possess immense growth opportunities. The smallcase has surged 7.3% in the last 1 month.
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Benchmark indices closed in the red this week even as Reserve Bank of India (RBI) cut repo rate by 25 basis points. Nifty closed down 2.93% at 11,174.75 and Sensex closed at 37,673.3 down 2.96%.
For the 5th straight monetary policy review, RBI continued cutting rates. RBI’s Monetary Policy Committee (MPC) on Friday slashed the repo rate by 25 basis points (bps) to 5.15% while maintaining an accommodative policy stance. The committee also revised the GDP growth target for the fiscal year 2020 to 6.1% from 6.9%.
India’s infrastructure output for Aug 2019 dropped by 0.5% compared to the same period the previous year. Current account deficit narrowed to USD 14.3 billion, or 2% of GDP, in April-June 2019-20 from USD 15.8 billion, or 2.3% of GDP, in the same period a year earlier.
India Manufacturing PMI came in at 51.4 in September 2019, unchanged from the previous month’s 15-month low. Services PMI plunged to 48.7 in September 2019 from 52.4 in the prior month and well below market expectations of 52.1.
Salary credited? Awesome 🥳
— smallcase (@smallcaseHQ) October 1, 2019