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India to be the third biggest economy by 2030

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By Newsgram Staff Writer

Leaving the US behind, India will be ranked as the third most powerful economic country in the world by 2030.

According to the US Department of Agriculture’s latest macroeconomic projections, the US will see its decline in shares by 20 percent and will be left just as the global leader with $24.8 trillion in annual output of the country worth 25 percent of the world economy in 2006 and 23 percent in 2015.

Fifteen years from now, the US will be far less dominant, several emerging markets will go down and some of the largest European economies will be left behind.

“Among all the developing countries, India will be the bright spot in the global landscape. The country will have the largest workforce in the world within the next 15 years,” said the International Monetary Fund.

“There are lots of uncertainties as China growing at 4% or 6% is not making that mark where India’s growth at 3 percent or 8 percent makes a huge differences when you compound them over long periods of time,” said Bruce Kasman, JP Morgan’s chief economist.

Currently, India is at the eighth rank following Brazil, the United Kingdom, France, Germany and Japan in economy.

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Dynamics of Tourism Growth in India

Ensuring that the tourism infrastructure supply chain is seamless will require not just creating a consistent and informative process

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Tourism, Growth, India
Fundamentally, for the robust long-term growth of the tourism sector, India must ensure that it is offering an eco-system that is attractive and consistent. Pixabay

The dynamics of industrial growth in India, for all ancillary industries, makes for fascinating reading and analysis. India has embarked on a renewed push towards making the country an attractive tourist destination through a variety of measures such as the “Incredible India 2.0” campaign. Both local and international destinations have wooed domestic Indian tourists. Regardless of whether one considers inbound or outbound tourism, the tourism supply chain provides exciting opportunities for investors and provides pointers towards much-needed infrastructure developments.

At a fundamental level, as India looks to develop further this component of the economy derived from tourism, it is vital to focus on the convergence of marketing & branding (read availability of information regarding possible tourist destinations), accessibility and local infrastructure such as hotels, eateries, transportation and medical facilities. Fundamentally, for the robust long-term growth of the tourism sector, India must ensure that it is offering an eco-system that is attractive and consistent.

Ensuring that the tourism infrastructure supply chain is seamless will require not just creating a consistent and informative process that generates tourist interest, but also a back-to-front infrastructure linkage that delivers the experience. For instance, a trip to the Taj Mahal via the Delhi Airport and the expressway linking Delhi to Agra is vital to ensuring that the branding and marketing of a tourist destination deliver value.

A closer look at the example stated above throws light upon the importance of the airline connectivity, highway and airport infrastructure involved. Additionally, the availability of the local hospitality industry that caters to the spectrum of incoming tourists at the tourist destination is vital. One missing piece in the link renders all other assets relatively incapable of realising full value. On the contrary, a seamless infrastructure linkage system ensures that the various components in the supply chain can operate close to full potential to generate value.

Tourism, Growth, India
At a fundamental level, as India looks to develop further this component of the economy derived from tourism, it is vital to focus on the convergence of marketing & branding (read availability of information regarding possible tourist destinations). Pixabay

For example, exceptional air connectivity to a tourist destination and the availability of hotel infrastructure that caters to a broad spectrum of tourists is rendered relatively ineffective in generating significant tourist traffic without the last-mile road connectivity required between the airport and the final tourist destination. It is vital to underscore that the focus isn’t only on the international tourist, but on both foreign and domestic tourists.

Essentially, as the interlinkages mentioned above will improve, so will the volume of tourist traffic. The capacity for both the government and investors to further develop the cornerstone of the tourism infrastructure linkage stated above has significant multiplier effects for investment opportunities in linked sectors. The luggage industry is a classic example of a sector that will provide investment avenues as the Indian tourism industry develops further. Additionally, not only will the ancillary industries such as luggage grow, but they will also grow in terms of segmentation. With gradually rising incomes, opportunities will be created not just by aggregate market size growth but by tapping into segments such as higher-end luggage demand.

The key takeaway is that as basic tourism infrastructure will grow, linked industries such as luggage, banking and foreign exchange service providers will flourish. Opportunities through market disruptions must be viewed by investors as an avenue to get into growth segments that benefit from tourism growth in India. The opportunity to acquire a foreign exchange business from a larger business group or to get a foothold within the luggage industry must be viewed as an opportunity to tap into the tourism potential.

Indian tourism opportunities must be viewed through a wider lens of tourism that not only caters to traditional hospitality but also builds on the niche opportunities available. Medical tourism is an area that has seen significant growth in the past years and with the infrastructure ecosystem providing support will grow further.

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However, segments such as the meetings (both national and international), incentives, conventions and exhibitions (MICE) and wedding destination need more significant focus in India. Infrastructure creation that will allow India to gain a foothold in the MICE tourism space gradually is vital. Not only will there be direct earnings, but existing hospitality assets will be able to ramp up their returns on the back of adequate MICE infrastructure.

The tourism industry going further offers significant opportunities to India to generate jobs, more GDP and investment opportunities. Further building on the available opportunities through a well-planned and holistic approach is urgently required. (IANS)