Government sources have said that the Indian government plans to cut down on taxes on travel and tourism and offer more incentive to the sector in the upcoming annual budget. The tourism industry in India is worth more than $210 billion.
The step is being taken with hopes to increase economic development and generation of employment. The country has also recently seen a surge in air travel given that airports are coming up all across the nation. Currently, according to reports, the tourism sector employs more than 40 million people and could potentially add up to 10 million more in the upcoming decade.
Sources have disclosed that Finance Minister Arun Jaitley plans to decrease hotel tariff rates by 28% and reward incentives to private companies.
Hotel industries like Taj and the Oberoi or even airlines like Jet Airways and tour operators like Thomas Cook are all expected to gain from this move. Additionally, domestic travel is now done mostly via online players like MakeMyTrip who will also be affected.
The government is also preparing to increase expenditure on constructing roads for tourist destinations and trains. Prime Minister Narendra Modi has also earlier said that plans to invest more in North-Eastern tourism are being ushered in.
Sources: Economic Times, Reuters
For the quarter that ended in December, 2015, TVS Motor, India’s third largest two wheeler company by volumes, has posted 20 per cent increase in its net profit at Rs. 108 crore. The company had posted a net profit of Rs 90 crore for the same period of the preceding fiscal.
In a BSE filing, the company reported net sales that rose to Rs 2,909 crore in the current fiscal year’s third quarte, up 11.92 per cent.
In another filing, the company said that TVS Motor’s Board of Directors have agreed in-principle an investment of an amount not exceeding 10 million Hong Kong Dollars for setting up of a completely-owned subsidiary in Hong Kong.
As per TVS Motor, the step has been undertaken to broaden the possible in the export market and reinforce the supply chain management in foreign nations. It also said that the details of the proposed subsidiary will be finalized and then submitted for approval by the board of directors.
From 6.27 lakh unit in the parallel quarter of the previous fiscal, the brand grew by 8 per cent to 6.76 lakh units. Also, the motorcycle sales shot up by 5 per cent to 2.60 lakh units in the third quarter. Scooter sales went up by 25 per cent to 2.33 lakh units in the third quarter of the current fiscal, as compared with 1.86 lakh units in the year-ago period.
TVS Motor also mentioned that the Chennai floods and amendment to Bonus Act, impacted its third quarter profit.
Source: NDTV Profit, The Hindu