Tourism and Indian Economy Essays

Tourism and Indian Economy Essays Tourism and Indian Economy Essay Tourism and Indian Economy Essay Impact of saarc on Indian economy 1) Impact of Recession on Indian Econom Reason for Recession to occur What happened was this: banks were approached by thousands of possible new home owners asking for loans. This was during a period where the United States real estate market was climbing fast, and the value of homes was rising quickly. The banks approved these ‘bad’ or ‘sub-prime’ mortgages under the mentality that if the new home owners were to foreclose, the property would have a higher value than what it originally was due to the climbing real estate market, meaning that the bank would not lose money but make a profit!What actually happened was that the real estate market crashed, and banks were out of pocket due to the massive numbers of foreclosures on mortgages occurring. This set off the global financial crisis, which led to a global economic downturn and the recession in most developed countries. All that because of some bad debts in the States! 2) Impact of Tourism on Indian Economy Tourism can generate maximum employment opportunity because of a large number of subsidiary industries.September 2008 and a 3. 3 per cent growth in passenger traffic through September. The negative trend intensified during 2009, exacerbated in some countries due to the outbreak of the AH1N1 influenza virus, resulting in a worldwide decline of 4 per cent in 2009 to 880 million international tourist arrivals, and an estimated 6 per cent decline in international tourism receipts. Definition of tourism Tourism is travel for recreational, leisure or business purposes.The World Tourism Organisation defines tourists as people who â€Å"travel to and stay in places outside their usual environment for more than 24 hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited. † Hunziker and Krapf, in 1941, defined tourism as â€Å"the sum of the phenomena and relationships arising from the travel and stay of non-residents, insofar as they do not lead to permanent residence and are not connected with any earning activity. In 1976, the Tourism Society of England’s definition was â€Å"Tourism is the temporary, shortterm movement of people to destinations outside the places where they normally live and work and their activities during the stay at each destination. 3) Impact of Globalization on Indian Economy- an Overview introduction Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive.The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient. With the onset of reforms to liberalize the Indian economy in July of 1991, a new c hapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over the last decade can hardly be overlooked. Besides, it also marks the advent of the real integration of the Indian economy into the global economy.This era of reforms has also ushered in a remarkable change in the Indian mindset, as it deviates from the traditional values held since Independence in 1947, such as self reliance and socialistic policies of economic development, which mainly due to the inward looking restrictive form of governance, resulted in the isolation, overall backwardness and inefficiency of the economy, amongst a host of other problems. This, despite the fact that India has always had the potential to be on the fast track to prosperity.Now that India is in the process of restructuring her economy, with aspirations of elevating herself from he r present desolate position in the world, the need to speed up her economic development is even more imperative. And having witnessed the positive role that Foreign Direct Investment (FDI) has played in the rapid economic growth of most of the Southeast Asian countries and most notably China, India has embarked on an ambitious plan to emulate the successes of her neighbors to the east and is trying to sell herself as a safe and profitable destination for FDI. ) Impact of Fii on Indian Economy Most of the under developed countries suffer from low level of income and capital accumulation. Though, despite this shortage of investment, these countries have developed a strong urge for industrialization and economic development. As we know the need for Foreign capital arises due to shortage from domestic side and other reasons. Indian economy has experienced the problem of capital in many instances.While planning to start the steel companies under government control, due to shortage of res ources it has taken the aid of foreign countries. Likewise we have received aid from Russia, Britain and Germany for establishing Bhiloy, Rourkela and Durgapur steel plants. The present paper is a modest attempt to study the trends in Foreign Institutional Investment into India. It is observed that the FIIs investment has shown significant improvement in the liquidity of stock prices of both BSE and NSE.However, there is a high degree of positive co-efficient of correlation between FIIs investment and market capitalization, FIIs investment and BSE amp; NSE indices, revealing that the liquidity and volatility was highly influenced by FIIs flows. Further, it is also proved that FIIs investment was a significant factor for high liquidity and volatility in the capital market prices. The present study is a modest attempt to know the status of FIIs in Indian capital market.