Analysis of tourism Industry policies for four different states of India

1. Industrial Policy
Submitted By
212027 RESHMI RAVEENDRAN

2. 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
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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3. 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 attain international competitiveness and
To transform India into a major partner and player
in the global arena
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4. Industrial Policies
Industrial Policy Resolution of 1948
Industrial Policy Resolution of 1956
Industrial Policy Resolution of 1973
Industrial Policy Resolution of 1977
Industrial Policy Resolution of 1980
The New Industrial Policy of 1991
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5. 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.
Initiatives:
Industrial Licensing
Foreign Investment
Foreign Technology Agreements
Public Sector Policy
MRTP Act
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6. 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.
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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7. Tourism Industry
Uttar Pradesh
World tourism contribution to
GDP is 11%
West Bengal
Gujarat
Indian tourism contribution to
GDP is 1.8%
Many industries associated
Employment generation
Kerala
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Most States has given Tourism “Industry Status” so that hotels
can benefit under Industrial
Policy

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9. UP – Domestic (2) , Foreign (4)
West Bengal -Domestic (9) , Foreign (6)
Kerala – Foreign (8)
Gujarat – Domestic (8)
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Sources : http://tourism.gov.in/

10. Challenges
Lack of proper infrastructure
Human resources
Service levels
Lack of adequate marketing and
promotion
Taxation
Security
Regulatory issues
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Oppurtunities
India’s size and massive natural,
geographic, cultural diversity
Medical tourism in India
Eco-tourism increasing popularity 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.

11. 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 selctive
locations)
Kerala, Madhya Pradesh, Orissa and Gujarat
have entered star category hotels at into
Private Public Partnerships (PPP)
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12. 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 Taj
Mahal.
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)
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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13. 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
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
13 Gujarat has a well-spread network of banking and financial institutions

14. 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:events
like Navratri, Somnath festival etc
The policy also aims to create an image for Gujarat in
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/
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15. 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
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
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something to offer throughout the year.

16. 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
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-PrivatePartnership (PPP) mode.
Sources : http://www.westbengaltourism.gov.in/
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17. 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
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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18. 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
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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19. 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 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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20. 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
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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21. 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 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 4
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22. THANK YOU
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