The document discusses the impact of recent terrorist attacks in India on the country's tourism industry. It states that the attacks have already led to fewer foreign tourists visiting India at the start of the tourism season. The government is considering tax cuts and other relief measures for the tourism and hospitality sectors to help deal with the losses. The $7 billion Indian tourism industry relies heavily on visitors from Western countries, and travel advisories warning citizens to avoid India are expected to significantly reduce tourism. The industry had already been struggling with the effects of the global recession.

1. Consumer 2.0
Indicus Analytics
December, 2008
Tourism – Reeling under the impact of the terrorist attack
The first and immediate fall out of the terror attacks is already being felt in the tourism sector.
The attacks could scare off more foreign investors and business leaders who helped spur India's
record growth. The tourism industry is seeing fewer tourists coming into the country, at the
beginning of the season.
Reports indicate that the government is mulling a package including luxury tax cut for the
tourism and hospitality sectors. Tourism and Culture Minister Ambika Soni reportedly said, "I
have written to the Prime Minister seeking certain relief measures, including luxury tax rebate
for tourism and hospitality sector", which reinforces the theory that reforms happen only when
crisis happens. Why in the first place, does India have such abominable rates of luxury taxes
when it intends to promote tourism?
Tourism is a function of general economic well being, and was already reeling under the impact
of global recession. Despite the famed resilience, it is pessimism all around in this sector for
now. The $7 billion Indian tourism industry earns most of its revenues from the US, UK and
European visitors. The advisories issued by US, Canada, UK and other European countries to
their citizens, asking them to avoid travelling to India is likely to dent the industry significantly.
Also read:
Tourism at 40% Deficit: Experts Tourism will flourish, assures Tourism Minister
Tourism takes a hit post-26/11 Dip in tourism to shave 0.5% from GDP: Omkar Goswami
Excise Duty Cuts in Automobiles
What is likely to drive auto sales – further reduction in prices or easing liquidity and lower
interest rates? Our view is that availability of finance is the more critical factor. In case of
personal vehicles, the spectre of job losses is another factor impacting demand.
The automobile sector has achieved significant economies of scale during the last 10 years
which has driven down costs. On the other hand successive governments have brought down
the taxes from abnormally high levels to levels that are more rational, though still somewhat on
the higher side. The combination has seen automobile prices remain at the same nominal levels
for over 10 years (significantly lower today in real terms). Indications are that this is
somewhere around the bottom, and there is little left as gains apart from a bit more reduction in
taxes. However, the cuts are welcome and a bit more will be desirable.
The Affluent Neighbourhoods in India
Oshiwara is the richest neighbourhood in India

2. Oshiwara, Mumbai
Oshiwara in Andheri (West) is the richest neighbourhood in India (in terms of number of
millionaire households), with over 15,000 households having annual incomes of over Rs 1
million. In fact, of the top 20 neighbourhoods in India, as many as 18 are from Mumbai.
The top ranking neighbourhoods in Mumbai are Oshiwara, Sahar, Walkeshwar, Mahalakshmi,
Versova Creek, Chembur West (Golf Club), Borivalli West
The richest neighbourhood (in terms of number of millionaire households) in other major cities
are - Rohini in Delhi (overall rank 9), JP Nagar in Bangalore (overall rank 42), Adyar West in
Chennai (overall rank 48), Beckbagan-Ballygunge in Kolkata (overall rank 78).
There are 166 neighbourhoods in the 5 major cities which have over a thousand households
having annual incomes of over Rs 1 million (out of a total of 626 neighbourhoods). Of these:
 37 are from Bangalore
 11 are from Chennai
 47 are from Delhi
 9 are from Kolkata
 62 are from Mumbai
In terms of proportions of households being millionaire households, the picture changes
somewhat. The top neighbourhoods in Mumbai are
Neighbourhood Neighbourhood Description/Boundaries
Ward D - Grant Road
- Walkeshwar Walkeshwar, Walkeshwar Road, Mahadeo Mandir, BG Kher Road
Ward H/West -
Bandra - Wireless and
Telegraph Office
14,15,16,17,18 th Road, Western Avenue, Central Avenue, Indira
Narayan Road, Talmiri Road, Wirelesss and Telegraph Office,
Cemetary, Dattatray Road, Juhu Road
Ward H/West -
Bandra - Jetty
Jetty, Francise Road, Perry Road, Vinayak Road, Pali Mala Road,
Sherley Village Road, BMC Reservoir, Chuim Village Road, Dr.
Ambedkar Road
The top neighbourhoods in Delhi are
Neighbourhood Neighbourhood Description/Boundaries
Greater Kailash I
South-Asian Games Village Complex,Chirag Enclave,East Of
Kailash,Greater Kailash I,Hemkunt Colony,Kailash Colony,Kailash
Hill,Kailash Kunj,Krishi Vihar,Lal Gumbad & JJC,Masjid Moth DDA
Flats,Nehru Place,Pamposh Enclave,Panchsheel Enclave,Panchshila
Nangloi
Nazafgarh-Amber Vihar,Ambey Garden,Ambica Vihar,Arya
Mohalla,Ashok Mohalla,Bhera Enclave,Chandan Garden,Chandan
Vihar,Chander Vihar Nilothi,Chhaju Ram Colony,Guru Hari Kishan
Nagar Nilothi Extn.,Guru Harkishan Nagar,Guru Nanak
Vihar,Hanuman Enclave
Greater Kailash II
Central-Alaknanda,Chittaranjan Park,Greater Kailash Encl-I &
II,Greater Kailash II,Greater Kailash III,Greater Kailash IV (NRI
Colony),Shaheed Camp,Sheikh Sarai Phase II
Source: The City Skyline of India – Neighbourhood Series. This product is designed to help
marketers and strategists dissect the cities of India at extremely granular levels. It divides the
cities into neighbourhoods which are as small as a few square kms. Delhi, Mumbai, Bangalore,
Kolkata and Chennai have been divided into 128, 99, 102, 141 and 155 neighbourhoods
respectively.
Insights from Indicus
Sickness and Growth of SSIs in India
Small Savings in Post Offices
Mumbai and Delhi have higher numbers moving towards prosperity
Broadband through mobile: Finally it may be possible

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