Tourism industry industrial policy

Industrial Policy

Submitted By

212027 RESHMI RAVEENDRAN

Industrial Policy

� It covers rules, regulations, principles, policies, & procedures laid down by government for regulating & controlling industrial undertakings in the country.

� It prescribes the respective � It prescribes the respective

roles of the public, private, joint, cooperative large, medium & small scale sectors for the development of industries.

� It incorporates fiscal & monetary policies, tariff policy, labor policy.

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Objective

� To maintain a sustained growth in productivity

� To enhance gainful employment

� To prevent undue concentration of economic power

� To achieve optimal utilization of human resources� To achieve optimal utilization of human resources

� To attain international competitiveness and

� To transform India into a major partner and player

in the global arena

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Industrial Policies

� Industrial Policy Resolution of 1948



� Industrial Policy Resolution of 1977� Industrial Policy Resolution of 1977


� The New Industrial Policy of 1991

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Industrial Policy 1991

Policy focus:

� Deregulating Indian industry;

� Allowing the industry freedom and flexibility in responding to market forces and

� Providing a policy regime that facilitates and fosters growth of Indian industry.growth of Indian industry.

Initiatives:

� Industrial Licensing

� Foreign Investment

� Foreign Technology Agreements

� Public Sector Policy

� MRTP Act

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Project Objective

� Sectors : Tourism

� This Sector has been analysed for four different states:

Gujarat, Uttar Pradesh, Kerala, West Bengal

� I have tried to analyse from an Entrepreneurs point of view as to based on the policies which are the most favourable states for each sector.on the policies which are the most favourable states for each sector.

� Criteria for selecting the states:

-We have decided by analysing the secondary information available.

-Also rankings of the states for each sector from the government/ministry portals.

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Tourism IndustryTourism IndustryTourism IndustryTourism Industry

Uttar Pradesh

World tourism contribution to GDP is 11%

Indian tourism contribution to West Bengal

Kerala

Gujarat

Indian tourism contribution to GDP is 1.8%

Many industries associated

Employment generation

Most States has given Tourism -“Industry Status” so that hotels can benefit under Industrial Policy

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UP – Domestic (2) , Foreign (4)

West Bengal -Domestic (9) , Foreign (6)

Kerala – Foreign (8)

Gujarat – Domestic (8)

Sources : http://tourism.gov.in/9

Challenges Oppurtunities

�Lack of proper infrastructure

�Human resources

�Service levels

�Lack of adequate marketing and promotion

�India’s size and massive natural, geographic, cultural diversity

�Medical tourism in India

�Eco-tourism increasing popularity -eco-friendly hotels and tour packagespromotion

�Taxation

�Security

�Regulatory issues

eco-friendly hotels and tour packages

�India’s greatest adventure tourism assets - Himalayas & its rivers

�Agri tourism, pilgrimage tourism, heritage tourism, and MICE tourism hold enormous potential.

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Tourism Policies in India

In the year 2002, the Government of India announced a New Tourism

Policy to give boost to the tourism sector.

Salient Features

�NRI investment up to 100% allowed

�Concession rates on customs duty of 25% for goods required for initial setup.

�Benefit of 100% investment linked tax deduction on capital expenditure( for building tax incentive & operating new hotel at selctivelocations)

�Kerala, Madhya Pradesh, Orissa and Gujarat have entered star category hotels at into Private Public Partnerships (PPP)

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�Tourist Visa on Arrival schemes� ‘Industry status’ to tourism � Single-window clearance for new hotel projects�Urban infrastructure and facilities such as the area around the TajMahal.

� 100 percent FDI in developing tourism infrastructure in India�About 5.92% of the country’s GDP comes from tourism . Tourism has also created a lot of employment (associated industries)has also created a lot of employment (associated industries)

�Healthcare tourism -can avail private healthcare facilities. � “Incredible India”campaign implemented by the GOI -Catalyst in attracting record tourist in India is the first B2C campaign of its kind. Has created a unique brand and identity of India in World Travel & Tourism

� Incredible IndiaVideo

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Gujarat Highlights:

Heritage, Museums, Achaeological site, Wildlife, Relegious

Sites, Fairs

Tourism Objective

�Hospitality Industry Growth�Indirect Employment�Cultural Development�Infrastructure Development�Employment Opportunities 90 jobs Per Million Rs. Investment�Employment Opportunities 90 jobs Per Million Rs. Investment�Sustainance of rich Heritage of Art & Craft

Strengths

�Majority of the 2 crore NRIs, are Gujaratis . This untapped resource can be motivated �Business friendly environment.�Industry friendly State attracting the attention of investors worldwide with its open door policy and liberalized economy�Gujarat has a well-spread network of banking and financial institutions13

Strategy

� The policy would aim at overall development of tourism by creating excellent infrastructure, connectivity and providing tourists with good facilities in important tourist and religious places

� Special thrust to ‘Event (Festival) based Tourism’ eg:eventslike Navratri, Somnath festival etc

� The policy also aims to create an image for Gujarat in international arena by developing entertainment theme parks international arena by developing entertainment theme parks in certain areas, which would be considered as Special Entertainment Zones.

� Entrepreneurship Government is very keen to promote women entrepreneurs and therefore, will give priority to projects promoted by women

� Gujarat is the most investor friendly state

Sources: http://www.gujarattourism.com/14

West Bengal Highlights:

Heritage, Himalayas, Mangrove, Sea Forest, Pilgrimage

Tourism Objective

�To improve the market share of West Bengal in international & domestic tourism market. �To develop a portfolio of tourism products -�Infrastructure Development & Employment Opportunities�To facilitate tourism by all segments, particularly the middle and lower �To facilitate tourism by all segments, particularly the middle and lower income tourists�To develop partnership with the govt. and non-govt. agencies including PPP

Strengths

�Has abundant natural resources of minerals �West Bengal offers excellent connectivity to rest of India -rail, roadways, airports, ports�Geographical advantages�Given the variance of the tourism sites in the State, West Bengal has something to offer throughout the year.15

Strategy

� Tourism has been declared as an Industry by the State in

1996. The Government in an effort to a number of schemes to

encourage Tourism.

� The State Scheme of Incentives for Cottage and Small Scale

Units, 1993 were made available to the tourism industry.

� The government will provide exemption on stamp duty,

employment generation subsidy, waiver of land conversion employment generation subsidy, waiver of land conversion

fee, tax holiday on VAT returns, etc, to new projects coming up

in the state.

� The policy envisages to promote private sector investment in

greenfield / brownfield projects and through Public-Private-

Partnership (PPP) mode.

Sources : http://www.westbengaltourism.gov.in/16

Uttar Pradesh Highlights:

World Heritage – Taj Mahal,Monuments, Pilgrimage, Fairs

Tourism Objective

�To promote tourism development in harmony with local community & Employment.

�To protect, preserve, and conserve the monuments� To promote the highest possible standards of cleanliness, sanitation, and

landscaping� To promote and develop UP as a prime national and international tourism � To promote and develop UP as a prime national and international tourism

destination� To showcase the values of cultural diversity, harmony and the depth of

civilisation that represents the State of U.P.

Strengths

�World tourism destinations - Taj Mahal�Religious Sites (Hindu, Islamic, Buddhism, Jain & Christian) �Tremendous cultural and architectural diversity all within one state �Nationally acclaimed craft centres

(e.g.Moradabad-metalware;Lucknow-Chikaan work)

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Strategy

A policy framework /enabling legislation for privatisation of hotel properties

� for land acquisition from tourism perspective

� for incentives to promote cleanliness and sanitation drive

� for adoption and up-keep of monuments by private corporates,

institutions and associations of local bodies

� Entrepreneurship development and self employment programmes to � Entrepreneurship development and self employment programmes to

involve the educated youth in providing various tourist facilities and

services and thereby creating employment opportunities.

� Establishing Paryatan Mitra (Friend of Tourism) for assisting

entrepreneurs

Sources : http://www.up-tourism.com/

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Kerala Highlights:

Eco Tourism, Medical (Ayurveda), Adventure, Wildlife

Tourism Objective

�To promote & market the state as a premium tourism destination in the domestic and international markets� To promote and facilitate private investments in tourism , support infrastructure and ensure quality services and facilities�To ensure that the local community benefits from tourism, through a new model on PPPon PPP� To enhance visitor satisfaction in destinations

Strengths

�Well-developed rail, ports and telecom infrastructure covering all parts of the state�Good local administration, state govt support to industry & proximity to markets /ports. �The state has high levels of literacy and a remarkably stable political situation.�Good marketing and information support systems to enhance tourism inflow

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Strategy

� 2-year sales tax holiday for self-employment units with turnover below Rs 200,000

� Single Window Clearance system- An online system will be introduced to expedite clearances in a time bound manner.

� Labor Development Offices ensure that work does not suffer due to disputes in new enterprises

� Approval / Classification of tourism units through Tourism � Approval / Classification of tourism units through Tourism studies and collection of tourism statistics

� Upgradation and creation of new tourism products

� Ensuring quality infrastructure at tourist destinations

� Government promotes entrepreneurial culture among the people of the State in a Mission mode.

Sources : http://www.up-tourism.com/

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Inference

� Co-operative partnership between government departments, national tourism authorities, international and national trade associations, trade unions and the travel and tourism private sector

� All stakeholders now need to share the responsibility for travel and tourism’s future and need to deliver the following to ensure its sustainabilityto ensure its sustainability

� As an entrepreneuer, we have to evaluate : Tourist traffic, tourist profile, infrastructure, purpose of travel, policies

Based on Policies:

Gujarat � Rank 1

Kerala � Rank 2

Uttar Pradesh � Rank 3

West Bengal � Rank 421

THANK YOUTHANK YOU

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