Q.1 Expalin Service Concept & Characteristic ?

Explain Factors
responsible for growth of service?
The world economy nowadays is increasingly characterized as a service economy. This is
primarily due to the increasing importance and share of the service sector in the economies of
most developed and developing countries. In fact, the growth of the service sector has long
been considered as indicative of a country’s economic progress.

Economic history tells us that all developing nations have invariably experienced a shift from
agriculture to industry and then to the service sector as the main stay of the economy.

Definition and characteristics of Services

The American Marketing Association defines services as - “Activities, benefits and satisfactions
which are offered for sale or are provided in connection with the sale of goods.”

The defining characteristics of a service are:

Intangibility: Services are intangible and do not have a physical existence. Hence services
cannot be touched, held, tasted or smelt. This is most defining feature of a service and that
which primarily differentiates it from a product. Also, it poses a unique challenge to those
engaged in marketing a service as they need to attach tangible attributes to an otherwise
intangible offering.

1. Heterogeneity/Variability: Given the very nature of services, each service offering is

unique and cannot be exactly repeated even by the same service provider. While
products can be mass produced and be homogenous the same is not true of services.
eg: All burgers of a particular flavor at McDonalds are almost identical. However, the
same is not true of the service rendered by the same counter staff consecutively to two
customers.
2. Perishability: Services cannot be stored, saved, returned or resold once they have
been used. Once rendered to a customer the service is completely consumed and
cannot be delivered to another customer. eg: A customer dissatisfied with the services of
a barber cannot return the service of the haircut that was rendered to him. At the most
he may decide not to visit that particular barber in the future.
3. Inseparability/Simultaneity of production and consumption: This refers to the fact
that services are generated and consumed within the same time frame. Eg: a haircut is
delivered to and consumed by a customer simultaneously unlike, say, a takeaway burger
which the customer may consume even after a few hours of purchase. Moreover, it is
very difficult to separate a service from the service provider. Eg: the barber is
necessarily a part of the service of a haircut that he is delivering to his customer.

Types of Services
1. Core Services: A service that is the primary purpose of the transaction. Eg: a haircut or
the services of lawyer or teacher.
2. Supplementary Services: Services that are rendered as a corollary to the sale of a
tangible product. Eg: Home delivery options offered by restaurants above a minimum bill
value.
Difference between Goods and Services
Given below are the fundamental differences between physical goods and services:

Goods Services

A physical commodity A process or activity

Tangible Intangible

Homogenous Heterogeneous

Production and distribution are separation Production, distribution and

from their consumption consumption are simultaneous
processes

Can be stored Cannot be stored

Transfer of ownership is possible Transfer of ownership is not possible

FACTORS CONTRIBUTING TO THE GROWTH OF SERVICE

SECTOR

1. GOVERNMENT POLICIES:
It is Govt. which makes mandatory for price levels, distribution strategies, defining
procedure attributes.
Another important action taken by the Govt.‟s “Privatization” means the policy of
transformcompanies.
The transformation of such operations like telecoms, airlines has led to restructuring cost
cutting and more market focused.
a. Increase the efficiency
b. Increase in profits
New change will require services firm to change their marketing strategy, operational
procedures, and HR policies.

2. SOCIAL CHANGES
Now a day there is a drastic change, two members are working, which requires to hire
individuals to perform tasks that used to be performed by a house hold member.
E.g. Child care
Laundry
Food preparation

3. BUSINESS TRENDS
Many professional associations have been forced by Govt. to remove long-standing bars on
adv and promotional activities.
Franchising has become wider spread in many service industries.Licensing of independent
entrepreneurs to produce and sell a branded service according to tightly specified procedures.
4. ADVANCES IN IT:

Changes come from the integration of computers and tele-communication

More powerful software enables firm to create databases that combine information about
customers with details of all their transaction, so that they can be used to predict new trends,
segment the market, new marketing opportunities.
The creation of wireless networks and transfer of electronic equipments such as cell phones
to lap tops and scanners, to allow sales and customer service personnel to keep in touch.

5. INTERNATIONALISATION AND GLOBALIZATION:

A strategy of international expansion may be driven by a sector for new markets or by the
need to respond to existing customers who are traveling abroad in greater numbers.

When companies set up operations in other countries they often prefer to deal with just a
few international suppliers rather than numerous local firms.

The net effect is to increase competition and to encourage the transfer of innovation in both
products and processes from country to country.
Q.2 Explain various types of Innovations & Stages in service
innovation and Development?
Innovation has become such a buzzword it can be hard to remember what it actually means.
Depending on who you talk to, the bar for “innovation” might seem incredibly high (“Let’s be
the next Netflix!”), or far too low (“Let’s hang up some hammocks in our office!”). There are
several different ways a company can innovate; in this article, they are broken down into three
general categories: product, process, and business model. By narrowing your focus on a specific
type of innovation, you can be a more effective and strategic innovator.
Types of Innovation-

It is remarkable how many people are under the false assumption that companies are either
innovative or not. This is a very polarizing and simplistic perspective that does not take into
account the different types of innovations that companies can and do pursue.

For this post, let’s break down innovation into two dimensions: Technology and Market, which
gives us the following 4 types of innovation:

1.Incremental Innovation

Incremental Innovation is the most common form of innovation. It utilizes your existing
technology and increases value to the customer (features, design changes, etc.) within your
existing market. Almost all companies engage in incremental innovation in one form or another.

Examples include adding new features to existing products or services or even removing features
(value through simplification). Even small updates to user experience can add value, for
example below is an older version of Constant Contact’s email schedule page:

2.Disruptive Innovation

Disruptive innovation, also known as stealth innovation, involves applying new technology or
processes to your company’s current market. It is stealthy in nature since newer tech will often
be inferior to existing market technology. This newer technology is often more expensive, has
fewer features, is harder to use, and is not as aesthetically pleasing. It is only after a few
iterations that the newer tech surpasses the old and disrupts all existing companies. By then, it
might be too late for the established companies to quickly compete with the newer technology.
3.Architectural Innovation

Architectural innovation is simply taking the lessons, skills and overall technology and applying
them within a different market. This innovation is amazing at increasing new customers as long
as the new market is receptive. Most of the time, the risk involved in architectural innovation is
low due to the reliance and reintroduction of proven technology. Though most of the time it
requires tweaking to match the requirements of the new market.

4.Radical innovation

Radical innovation is what we think of mostly when considering innovation. It gives birth to
new industries (or swallows existing ones) and involves creating revolutionary technology. The
airplane, for example, was not the first mode of transportation, but it is revolutionary as it
allowed commercialized air travel to develop and prosper.

The four different types of innovation mentioned here – Incremental, Disruptive, Architectural
and Radical – help illustrate the various ways that companies can innovate. There are more ways
to innovate than these four. The important thing is to find the type(s) that suit your company
and turn those into success.

Stages in service innovations & Development-

Every entrepreneur knows that productivity is one of the key ingredients for successful product
development. One of the two key processes in Robert’s Rules of Innovation is the NEW
PRODUCT DEVELOPMENT PROCESS. A formalized, NPD process – also referred to and best
practice: the Stage Gate® Process – is a must, from simple to sophisticated.
The New Product Development process is often referred to as The Stage-Gate innovation
process, developed by Dr. Robert G. Cooper as a result of comprehensive research on reasons
why products succeed and why they fail.

1: Generating

Utilizing basic internal and external SWOT analyses, as well as current marketing trends, one
can distance themselves from the competition by generating ideologies which take affordability,
ROI, and widespread distribution costs into account.

Lean, mean and scalable are the key points to keep in mind. During the NPD process, keep the
system nimble and use flexible discretion over which activities are executed. You may want to
develop multiple versions of your road map scaled to suit different types and risk levels of
projects.

Step 2: Screening The Idea

Wichita, possessing more aviation industry than most other states, is seeing many new
innovations stop with Step 2 – screening. Do you go/no go? Set specific criteria for ideas that
should be continued or dropped. Stick to the agreed upon criteria so poor projects can be sent
back to the idea-hopper early on.

Because product development costs are being cut in areas like Wichita, “prescreening product
ideas,” means taking your Top 3 competitors’ new innovations into account, how much market
share they’re chomping up, what benefits end consumers could expect etc. An interesting
industry fact: Aviation industrialists will often compare growth with metals markets; therefore,
when Boeing is idle, never assume that all airplanes are grounded, per se.

Step 3: Testing The Concept

As Gaurav Akrani has said, “Concept testing is done after idea screening.” And it is important to
note, it is different from test marketing.

Aside from patent research, design due diligence, and other legalities involved with new product
development; knowing where the marketing messages will work best is often the biggest part of
testing the concept. Does the consumer understand, need, or want the product or service?

Step 4: Business Analytics

During the New Product Development process, build a system of metrics to monitor progress.
Include input metrics, such as average time in each stage, as well as output metrics that measure
the value of launched products, percentage of new product sales and other figures that provide
valuable feedback. It is important for an organization to be in agreement for these criteria and
metrics.

Even if an idea doesn’t turn into product, keep it in the hopper because it can prove to be a
valuable asset for future products and a basis for learning and growth.

Step 5: Beta / Marketability Tests

Arranging private tests groups, launching beta versions, and then forming test panels after the
product or products have been tested will provide you with valuable information allowing last
minute improvements and tweaks. Not to mention helping to generate a small amount of buzz.
WordPress is becoming synonymous with beta testing, and it’s effective; Thousands of
programmers contribute code, millions test it, and finally even more download the completed
end-product.

Step 6: Technicalities + Product Development

Provided the technical aspects can be perfected without alterations to post-beta products, heading
towards a smooth step 7 is imminent. According to Akrani, in this step, “The production
department will make plans to produce the product. The marketing department will make plans
to distribute the product. The finance department will provide the finance for introducing the
new product”.

As an example; In manufacturing, the process before sending technical specs to machinery

involves printing MSDS sheets, a requirement for retaining an ISO 9001 certification (the
organizational structure, procedures, processes and resources needed to implement quality
management.)

In internet jargon, honing the technicalities after beta testing involves final database preparations,
estimation of server resources, and planning automated logistics. Be sure to have your
technicalities in line when moving forward.

Step 7: Commercialize

At this stage, your new product developments have gone mainstream, consumers are purchasing
your good or service, and technical support is consistently monitoring progress. Keeping your
distribution pipelines loaded with products is an integral part of this process too, as one prefers
not to give physical (or perpetual) shelf space to competition. Refreshing advertisements during
this stage will keep your product’s name firmly supplanted into the minds of those in the
contemplation stages of purchase.
Q.3 What do you mean by the pricing service? Explain
Approaches of pricing service?
Setting price for a product or service is not an easy task and your pricing approaches matters a lot
in this regard. The price of a product or service is kept to a level that can generate both profit as
well as demand. But generally the cost of the product or service provides the lower limit of the
price and the perceived value by consumers provides the upper limit for setting price. Business
Organizations should also take into account the prices of their competitors along with other
internal and external factors. There are general Pricing Approaches that can be applied by
businesses in setting prices for their products or services. These pricing approaches are of three
types.

Types of Pricing Approaches

 Cost-Based Pricing Approaches

 Competition-Based pricing Approaches
 Demand Based Pricing Approaches

Each of the above is based on different dimensions of product or service.

1. Cost Based Pricing Approach:

These pricing approaches are the simplest one in which the cost of product or service is added
with a certain proportion of markup as profit to ascertain a certain price. Examples include
construction businesses that estimate the cost of any project and submit their bid by adding a
certain portion of profit to their estimated cost. Moreover Accountants, Lawyers and other
professionals charge a price of their services by adding the cost of work with a certain proportion
of markup.

Markup pricing is not regarded as an effective pricing model as it ignores both demand and the
pricing of competitors. Therefore, it is almost impossible for a business to keep its price as best
one by adopting this category of pricing. But still Cost based pricing is popular due to the
following reasons.

 It makes pricing simpler so the marketers do not change the price of their product or
service with the changing demand.
 When the majority of businesses in the market adopt this pricing model, there would be
minimum price competition due to similarity in prices.
 Generally cost based pricing looks fairer for both buyers and sellers as buyers are not
exploited under condition of higher demand and also the seller can earn a reasonable
profit in such pricing.
2.Competition-Based Pricing Approach:

In this pricing model, businesses keep the price of their products or services on the basis of the
prices of their competitors. Also, customers in the market perceived value to any product or
service in relation to prices of similar products of competitors. So there is some sort of going rate
pricing in which the prices of products are altered according to changes in the prices of
competitors. For example, steel or fertilizer manufacturing businesses face oligopolistic
competition in which they charge almost similar prices in the market same like the competitors.
There is a market leader whose price is followed by all other smaller competitors. When the
price of market leader is changed, other competitors in the market also adjust their prices
accordingly. Some smaller business may keep a slight difference in their price as compared to
the market leader, but this slight difference remains constant in different conditions.

There is one big advantage of adopting this ongoing rate of competition based pricing, which is
the prevention of price wars in the market among competitors.

3.Demand-Based Pricing Approach:

Demand-based pricing is any pricing method that uses consumer demand – based on perceived
value – as the central element. Demonstrate the meaning of and the different types of demand-
based pricing Price skimming is a pricing strategy in which a marketer sets a relatively high price
for a product or service at first, then lowers the price over time. Price discrimination exists when
sales of identical goods or services are transacted at different prices from the same provider.
Psychological pricing is a marketing practice based on the theory that certain prices have a
psychological impact. Bundle pricing is a marketing strategy that involves offering several
products for sale as one combined product. Penetration pricing is the pricing technique of setting
a relatively low initial entry price, often lower than the eventual market price, to attract new
customers. Value -based pricing sets prices primarily on the value, perceived or estimated, to the
customer rather than on the cost of the product or historical price
Q.4 What is Service Expectations? Explain type of
service expectation?
Customer satisfaction reflects the expectations and experiences that the customer has with a
product or service. Consumer expectations reflect both past and current product evaluation and
user experiences.
Think about any major purchases you’ve made recently. Did you research your purchase?
Did you collect information from advertising, salespersons, friends, associates, or even test the
product?
This information influences our expectations and gives us the ability to evaluate quality,
value, and the ability of the product or service to meet our needs and expectations.
Customers hold both explicit and implicit performance expectations for attributes, features, and
benefits of products and services. The nature of these expectations will dictate the form and even
the wording of customer satisfaction survey questions. Let me repeat this: the nature of these
expectations will dictate the form and even the wording of your satisfaction questions.
Understanding the following 7 customer expectations form the definitions below is critical
before you set out to measure customer satisfaction and increase customer loyalty.

1. Explicit Expectations
Explicit expectations are mental targets for product performance, such as well-identified
performance standards.

For example, if expectations for a color printer were for 17 pages per minute and high-quality
color printing, but the product actually delivered 3 pages per minute and good quality color
printing, then the cognitive evaluation comparing product performance and expectations would
be 17 PPM – 3 PPM + High – Good, with each item weighted by the associated importance.

2. Implicit Expectations
Implicit expectations reflect established norms of performance. Implicit expectations are
established by business in general, other companies, industries, and even cultures.

An implicit reference might include wording such as “Compared with other companies…” or
“Compared to the leading brand…”

3. Static Performance Expectations

Static performance customer expectations address how performance and quality are defined for a
specific application. Performance measures related to quality of outcome may include the
evaluation of accessibility, customization, dependability, timeliness, accuracy, and user-friendly
interfaces.

Static performance expectations are the visible part of the iceberg; they are the performance we
see and—often erroneously—are assumed to be the only dimensions of performance that exist.

4. Dynamic Performance Expectations

Dynamic performance customer expectations are about how the product or service is expected to
evolve over time. Dynamic expectations may be about the changes in support, product, or service
needed to meet future business or use environments.

Dynamic performance expectations may help to produce “static” performance expectations as

new uses, integrations, or system requirements develop and become more stable.
5. Technological Expectations

Technological customer expectations focus on the evolving state of the product category.

For example, mobile phones are continually evolving, leading to higher expectations of new
features.

Mobile service providers, in an effort to limit a consumer’s ability to switch to new technology
phones, have marketed rate plans with high cancellation penalties for switching providers, but
with liberal upgrade plans for the phones they offer.

The availability of low profile phones with email, camera, MP3, blue tooth technology, and
increased storage will change technology expectations as well as the static and dynamic
performance expectations of the product.

These highly involving products are not just feature based, but raise expectations that enhance
perceptions of status, ego, self-image, and can even evoke emotions of isolation and fear when
the product is not available.

6. Interpersonal Expectations
Interpersonal customer expectations reflect the relationship between the customer and the
product or service provider.

Person to person relationships are increasingly important, especially where products require
support for proper use and functioning.

Support expectations include interpersonal sharing of technical knowledge, ability to solve a

problem, ability to communicate, reduced time to problem resolution, courtesy, patience,
enthusiasm, helpfulness, assurance that they understood my problem and my situation,
communication skills, and customer perceptions regarding professionalism of conduct, often
including image and appearance.

7. Situational Expectations
In building a customer satisfaction survey, it is also helpful to evaluate why pre-purchase
expectations or post-purchase satisfaction may or may not be fulfilled or even measurable.
The following conditions may be considered:
 Expectations may not include unanticipated customer service attributes that are new to
that consumer.
 Expectations may be based on vague images, thereby creating wide latitude of
acceptable performance and expected satisfaction.
 Product performance expectations and evaluations may be sensory and not cognitive, as
in expectations of taste, style or image. Such expectations are not only difficult to
evaluate and understand, but may change over time and with consumption.
 The product use may attract so little attention as to produce no conscious affect or
cognition (evaluation). When measured, this results in meaningless satisfaction or
dissatisfaction information.
 There may have been unanticipated benefits or consequences of purchasing or using
the product (such as a uses, usage situations, or features not anticipated with purchase).
 The original expectations may have been unrealistically high or low.
 The product purchaser, influencer and user may have each been a different type of
individual, each having different expectations.
Q.5 Healthcare sector in India?
Introduction

Healthcare has become one of India’s largest sectors - both in terms of revenue and employment.
Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine,
medical tourism, health insurance and medical equipment. The Indian healthcare sector is
growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by
public as well private players.

Indian healthcare delivery system is categorised into two major components - public and private.
The Government, i.e. public healthcare system comprises limited secondary and tertiary care
institutions in key cities and focuses on providing basic healthcare facilities in the form of
primary healthcare centres (PHCs) in rural areas. The private sector provides majority of
secondary, tertiary and quaternary care institutions with a major concentration in metros, tier I
and tier II cities.

India's competitive advantage lies in its large pool of well-trained medical professionals. India is
also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in
India is about one-tenth of that in the US or Western Europe.

Market Size

The healthcare market can increase three fold to Rs 8.6 trillion (US$ 133.44 billion) by 2022.

India is experiencing 22-25 per cent growth in medical tourism and the industry is expected to
double its size from present (April 2017) US$ 3 billion to US$ 6 billion by 2018.

There is a significant scope for enhancing healthcare services considering that healthcare
spending as a percentage of Gross Domestic Product (GDP) is rising. The government’s
expenditure on the health sector has grown to 1.4 per cent in FY18E from 1.2 per cent in FY14.
The Government of India is planning to increase public health spending to 2.5 per cent of the
country's GDP by 2025.

Road Ahead

India is a land full of opportunities for players in the medical devices industry. India’s healthcare
industry is one of the fastest growing sectors and it is expected to reach $280 billion by 2020.
The country has also become one of the leading destinations for high-end diagnostic services
with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater
proportion of population. Besides, Indian medical service consumers have become more
conscious towards their healthcare upkeep.

Indian healthcare sector is much diversified and is full of opportunities in every segment which
includes providers, payers and medical technology. With the increase in the competition,
businesses are looking to explore for the latest dynamics and trends which will have positive
impact on their business. The hospital industry in India is forecasted to increase to Rs 8.6 trillion
(US$ 132.84 billion) by FY22 from Rs 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16-
17 per cent.
Q 6. Biotechnology Industry in India?
Introduction
The biotechnology sector of India is highly innovative and is on a strong growth trajectory. The
sector, with its immense growth potential, will continue to play a significant role as an
innovative manufacturing hub. The sector is one of the most significant sectors in enhancing
India's global profile as well as contributing to the growth of the economy.
India is among the top 12 biotech destinations in the world and ranks third in the Asia-Pacific
region. India has the second-highest number of US Food and Drug Administration (USFDA)–
approved plants, after the USA and is the largest producer of recombinant Hepatitis B vaccine.
Out of the top 10 biotech companies in India (by revenue), seven have expertise in bio-
pharmaceuticals and three specialise in agri-biotech.
India has no dearth of talent in biotechnology, as a number of institutions, both
government and autonomous, provide the necessary opportunities for the students seeking to
obtain a degree in this sector. The Government of India has provided adequate scope to this
sector by providing facilities for Research and Development (R&D) in the field of
biotechnology.
Market size
The Indian biotech industry holds about 2 per cent share of the global biotech industry. The
biotechnology industry in India, comprising about 800 companies, is expected to be valued at
US$ 11.6 billion in 2017. The government has to invest US$ 5 billion to develop human capital,
infrastructure and research initiatives if it is to realise the dream of growing the sector into a US$
100 billion industry by 2025, as per Union Minister for Science and Technology, Mr Harsh
Vardhan.
Biopharma is the largest sector contributing about 62 per cent of the total revenue
followed by bio-services (18 per cent), bio-agri (15 per cent), bio-industry (4 per cent), and bio-
informatics contributing (1 per cent).
The high demand for different biotech products has also opened up scope for the foreign
companies to set up base in India.
India has emerged as a leading destination for clinical trials, contract research and
manufacturing activities owing to the growth in the bio-services sector.
Government Initiatives

A Network of Technology Centres and promotion of start-ups by Small Industries Development

Bank of India (SIDBI) are among the steps taken by the Government of India to promote
innovation and entrepreneurship in the agro industry proposed by the Ministry of Micro, Small &
Medium Enterprises (MSME) in a new scheme. The Government of India has taken several
initiatives to improve the biotechnology sector in the country as well as offer enough scope for
research in this field. The Department of Biotechnology (DBT) along with other government
funded institutions such as National Biotechnology Board (NBTB) and many other autonomous
bodies representing the biotechnology sector, are working together in order to project India as a
global hub for biotech research and business excellence

Road Ahead

With the country offering numerous comparative advantages in terms of R&D facilities,
knowledge, skills, and cost effectiveness, the biotechnology industry in India has immense
potential to emerge as a global key player.

India constitutes around 8 per cent of the total global generics market, by volume, indicating a
huge untapped opportunity in the sector. Outsourcing to India is projected to spike up after the
discovery and manufacture of formulations. Hybrid seeds, including GM seeds, represent new
business opportunities in India based on yield improvement.
Q.7 Hospitality Service?
Introduction
The Indian tourism and hospitality industry has emerged as one of the key drivers of growth
among the services sector in India. Tourism in India has significant potential considering the rich
cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread
across the country. Tourism is also a potentially large employment generator besides being a
significant source of foreign exchange for the country. During 2018, FEEs from tourism
increased 4.70 per cent* year-on-year to US$ 28.59 billion. FEEs during January 2019 was US$
2.55 billion.
Market Size
India is the most digitally-advanced traveller nation in terms of digital tools being used for
planning, booking and experiencing a journey, India’s rising middle class and increasing
disposable incomes has continued to support the growth of domestic and outbound tourism.
During 2018, foreign tourist arrivals (FTAs) in India stood at 10.56 million, achieving a growth
rate of 5.20 per cent year-on-year. FTAs in January 2019 stood at 1.10 million, up 5.30 per cent
compared to 1.05 million year-on-year.
The travel & tourism sector in India accounted for 8 per cent of the total employment
opportunities generated in the country in 2017, providing employment to around 41.6 million
people during the same year. The number is expected to rise by 2 per cent annum to 52.3 million
jobs by 2028.
International hotel chains are increasing their presence in the country, as it will account for
around 47 per cent share in the Tourism & Hospitality sector of India by 2020 & 50 per cent by
2022
Investments
During the period April 2000-December 2018, the hotel and tourism sector attracted around US$
12 billion of FDI, according to the data released by Department for Promotion of Industry and
Internal Trade (DPIIT).
Government Initiatives
The Indian government has realised the country’s potential in the tourism industry and has taken
several steps to make India a global tourism hub.
Some of the major initiatives planned by the Government of India to give a boost to the tourism
and hospitality sector of India are as follows:
 Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity’, was inaugurated in
October 2018. It is the highest standing statue in the world at a height of 182 metre. It is
expected to boost the tourism sector in the country and put India on the world tourism
map.
 The Government of India is working to achieve 1 per cent share in world's international
tourist arrivals by 2020 and 2 per cent share by 2025.
 Under Budget 2019-20, the government allotted Rs 1,160 crore (US$ 160.78 million) for
development of tourist circuits under Swadesh Darshan.
 Under Budget 2019-20, the government allotted Rs 160.50 crore (US$ 22.25 million) for
development of tourist circuits under Swadesh Darshan.
Achievements
Following are the achievements of the government during 2017-18:
 During 2018-19, a total of seven projects worth Rs 384.67 crore (US$ 54.81 million)
were sanctioned under the Swadesh Darshan scheme.
 As of July 2018, 14 states had deployed tourist police. In November 2018, Nagaland also
deployed a separate tourist police in the state.
Road Ahead
India’s travel and tourism industry has huge growth potential. The tourism industry is also
looking forward to the expansion of E-visa scheme which is expected to double the tourist inflow
to India. India's travel and tourism industry has the potential to expand by 2.5 per cent on the
back of higher budgetary allocation and low cost healthcare facility, according to a joint study
conducted by Assocham and Yes Bank.
Q.8 Transaction Vs Cumulative perceptions