| 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: 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 
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 ). 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 . 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 From around the world Australian Consumer Confidence Jumps, Home-Loan Approvals Rise - Australian home-loan approvals gained for the first time in nine months and consumer confidence surged, suggesting the most aggressive interest-rate cuts since 1991 may revive the slowing economy. Motorola launches entry-level multimedia handset - US handset maker Motorola on Tuesday launched an entry-level multimedia phone -- MOTOYUVA W396 -- priced at Rs 4,200. BlackBerry Storm is solid, but has a few bugs - Research in Motion, the mobile-messaging powerhouse, entered the fray with the BlackBerry Storm touch-screen smartphone ($199 with two-year contract). Italy's Loro Piana plans India foray - Italian textiles and clothing company Loro Piana SpA is entering India through single brand retail window by which it would hold 51% equity in the JV company. All Loro Piana products would be sold under the single brand name — Loro Piana in India. China's consumer price inflation in November fell to its lowest in 22 months, raising concerns about deflation in the world's fourth-largest economy. Wal-Mart Stores Inc's chief executive Lee Scott said he sees changes in the habits of the chain's customers as they contend with the recession. Wadhawan Food Retail opens smart supermarket in Karnataka - Wadhawan Food Retail Private Limited (WFRL), launched its 50th Smart supermarket in Koramangala, Bangalore. WFRL operates multiple Food & Grocery brands including Spinach in Maharashtra & Kolkata, Sabka Bazaar in Delhi NCR and Smart in Karnataka. M&M, Fiat defer launches on terror strike - M&M would have launched the much-awaited Xylo (previously known as Ingenio), a multi-purpose vehicle, this month, while Fiat India Automobiles (FIAL) had scheduled the launch of Linea, a mid-size sedan, in December. |
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