Scheduleforming part of the Balance Sheet - Domain-b

Annual Report 2007-2008
Indian Economy:
The Indian economy has moved decisively to a higher growth phase with growth in GDP at market prices exceeding 8 per cent in
every year since 2003-04. The projected economic growth of 8.7 per cent for 2007-08 is fully in line with this trend. There was an
acceleration in domestic investment and saving rates to drive growth and provide the resources for meeting the 9 per cent
(average) growth target of the Eleventh Five-Year Plan. Macroeconomic fundamentals continue to inspire confidence and the
investment climate is full of optimism. The recent increase in inflation levels and increase in crude prices will impact the economic
activity, which is the current cause of concern for the economy.
Indian Tourism Industry:
The Indian Tourism and Hospitality Industry driven by the huge surge in both business and leisure travel by domestic and foreign
tourists as per the World Travel & Tourism Council (WTTC) is expected to generate approximately USD 100 billion in 2008. The
flow of foreign tourist arrivals recorded a growth rate of 11.9% in 2007 over 2006 and was 4.9 million in 2007. The first 4 months of
2008 recorded a growth rate of 11.9 % (in tourist arrivals) over the corresponding arrivals in 2007 receiving 2.02 million in foreign
tourist arrivals. According to the WTTC, Indian tourism demand is estimated to grow at an average of 8.8% between 2004 to 2013
making India the world’s third fastest growing tourist market.
Source: Ministry of Tourism
Further, tourism is an important industry in Indian economy contributing around 6.8 per cent of the Gross Domestic Product and
providing employment to over 41 million persons. According to a research by University of New South Wales (UNSW), Australian
School of Business (ASB), India and China will be the new global players competing for a huge chunk of tourists, transforming the
geopolitical landscape. Significantly, while India’s share in world arrivals was about 0.5 per cent, its share in revenue generated
from tourism worldwide was over 1 per cent. India, with its diverse landscape, offers huge scope for various theme-based travel like
Medical Tourism, Adventure tourism, Heritage tourism, Wellness tourism, Pilgrimage tourism, Golf tourism, Eco-tourism, Wildlife
tourism among others. India’s growing reputation as a major medical tourism destination is attracting more and more foreign
visitors. In fact, Indian hospitals are fast becoming the first choice for foreign patients and many travel agents are now offering
packages combining treatment with a vacation. The boom in the Indian tourism industry has cascaded to the rural areas as well.
India continues to attract tourists owing to its splendid historical architecture and rich culture along with beautiful beaches. Rural
tourism or what now is called ‘responsible tourism’ is also fast gaining popularity with travelers flocking to discover the best in
rural arts and heritage.
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