ervi es e tor 10.11
business orders as collateral for credit-worthy Some suggested measures in this area, as per
service firms. the Economic Survey 2014–15, are:
Tax and Trade Policy related: These include use of (i) creating world class tourism infrastructure
‘net’ instead of ‘gross’ foreign exchange criteria for even by PPP;
export benefit schemes, the issue of retrospective (ii) addressing multiple taxation issues;
amendments of tax laws like, (iii) skill and etiquettes training to cater to the
(i) amendment to the definition of royalty needs of tourists;
to include payment of any rights via any (iv) special focus on cleanliness at tourist sites
medium for use of computer software, and safety of tourists;
(ii) tax administrative measures to tackle (v) using the MGNREGA for creating
delay in refunds, permanent assets like tourism
(iii) introducing VAT (value added tax) infrastructure and facilities;
refund for foreign tourists, and (vi) organising mini India cultural shows on
(iv) addressing the issue of bank guarantees a daily basis at important tourist sites
based on past performance to avail of that will not only attract tourists but also
generate employment for Indian artists;
export promotion benef its in services.
and
sectorAl issues (vii) implementing urgently visa on arrival
and E visa facilities at 9 airports to 180
Area-specific policy hurdles to the services sector
countries barring 8 ‘prior reference’
are also there. Together with the general issues,
countries (this decision has already been
these area-sepcific bottlenecks do not allow the taken).
sector to realise its real potential. The major ones
in this area are being outlined below. Port services: Indian ports are not world-class ports
and lack the necessary draft. As a result, ‘third-
Tourism and hospitality sector: As per the latest generation ships’ are not able to enter the harbour
data of world tourism, India’s tourism has not and goods have to be offloaded outside in smaller
been competitive enough to attract tourist due to ships, adding to costs. If India can develop world-
several reasons, such as, class airport infrastructure and metros, there is
(i) India’s share in world tourist inflows was every reason to attend the concerns of the port
only 0.64 per cent in 2012 (rank 41), services. Its immediate focus should be on—
while that of the USA was 6.47 per cent (i) building world class ports providing
(rank 2) and China 5.57 per cent (rank world class services that will also help
3). the trade sector by reducing costs and
(ii) India’s share in world tourism expenditure turnaround time in ports, and
is relatively higher at 1.65 per cent (rank (ii) reducing port charges which are
16) implying that foreign tourists spend considerably higher.
relatively more in India. Shipping, shipbuilding and ship repairs: Indian
(iii) Singapore, a small country, attracted ships in the carriage of India’s overseas cargo has
11.10 million tourists in 2012, while a fallen sharply and Indian ships are ageing, too.
large country like India attracted only Government-owned shipyards like Visakhapatnam
6.97 million foreign tourists during 2013. are facing problems like declining orders. India’s