#tourism , one of the fastest growing sectors in India, received a capital expenditure allocation of Rs 2,450 crore in Budget 2024, which is about a 45 percent increase from the previously revised allocation. In her budget speech on July 23, Finance Minister Nirmala Sitharaman said, "Tourism has always been a part of our civilization. Our efforts in positioning India as a global tourist destination will also create jobs, stimulate investment and unlock economic opportunity for other sectors.”
Experts believe that the government’s focus on infrastructure development and initiatives to promote cultural and heritage tourism are expected to drive growth and create new opportunities for the tourism sector.
“For any sector or theme to do well, one needs to think if it is tailwinded or headwinded..There is the government’s thrust on road connectivity, infrastructure, railways, airports, airlines and tourism. Also, business, leisure and medical tourism are booming. The disposable income for individuals has gone up over the last few years that could find it's way into either investment or discretionary expenditure. Tourism, we think is an important part of that.”, says Anand Vardarajan, chief business officer, Tata Asset Management.
Tata Mutual Fund recently launched India’s first tourism index fund that tracks the Nifty India Tourism Index, which in turn covers the entire tourism value chain from Nifty 500 index universe. Currently, 17 stocks are part of the index.
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