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  • Tuesday, September 8, 2022
BREAKING NEWS A Taste of Blackberry from Nature’s Perfection

IPOs This Week: Vaibhav Jewellers IPO to Madhusudan Masala IPO: 10 new issues, 5 listings to keep primary market buzzing

The primary market witnessed some major listings in both main board and small- and medium-sized enterprise (SME) segments last month, which kept investors engaged with subscriptions and listings. Moving on, the upcoming week sees strong market buzz for September, which is similarly packed with new listings and initial public offering (IPO) issues, that are available for subscription. Last week, two mainboard IPOs – Rishabh Instruments Limited and Ratnaveer Precision Engineering listed raising a total of 655.8 crore. ‘’The also showed a strong performance, largely supported by domestic capital accumulation. Strong investor confidence can be seen in the secondary market, but it becomes even more evident in IPOs as new and interesting ideas come to the market,'' said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Pvt. Ltd, a mid-market investment bank. ‘’Next week looks promising, the focus is on RR Kabel, Samhi Hotels, Zaggle Prepaid Ocean Services, and Michael Kaufman-backed Yatra Online, all aiming to gather 4,673 crore from investors,'' added Lunawat. Among the ongoing issues, Samhi Hotels IPO and Zaggle Prepaid Ocean Services IPO close on September 18, while Yatra Online IPO closes on September 20 from the mainboard segment. From the SME segment, Cellecor Gadgets IPO, Holmarc Opto-Mechatronics IPO, and Kody Technolab IPO closes on September 20. Let's take a look at some of the companies that are opening for subscription this week, along with few that are getting listed on the bourses. Signature Global IPO: The mainboard issue opens on September 20 and closes on September 22. Signature Global IPO comprises a fresh issue of equity shares worth 603 crore and an offer of sale (OFS) of shares worth 127 crore by its shareholder International Finance Corporation, a World Bank Group member. At the upper end of the price band, Signature Global IPO issue size stands at 730 crore. The public issue of the ethnic apparel retailer opens on September 20 and closes on September 22. The IPO comprises a fresh issuance of shares worth 600 crore by the company and an offer-for-sale (OFS) of 2,70,72,000 equity shares by promoter group. At the upper end of the price band, the total issue size comes in at 1,200 crore. The mainboard IPO of Andhra Pradesh-based Manoj Vaibhav Gems N Jewellers will be opening for subscription on Friday, September 22. The public issue comprises of fresh issuance of equity shares worth up to 210 crore and an (OFS) of up to 2.8 million equity shares. Vaibhav Jewellers IPO is a book-built issue. The issue will close on Tuesday, September 26. The SME IPO of the homegrown spice manufacturer opens for subscription on September 21. Madhusudan Masala IPO is a book built issue of 23.80 crore. The IPO issue comprises the sale of 34 lakh fresh equity shares, each with a face value of Rs. 10, aggregating to Rs. 23.80 crore. The issue will close on Thursday, September 21. The SME IPO opens on September 18, 2023. The company aims to raise 16.72 crore through the public issue. It is a fixed price issue at 86 per equity share, at a face value of 10 per share. Techknowgreen Solutions IPO comprises a fresh issue of 19.44 lakh shares, aggregating up to Rs16.72 crore. The issue closes on September 21. The SME IPO opens for subscription on September 18, 2023 and closes on September 21, 2023. Master Components IPO is a fixed price issue of 15.46 crore. The issue is a combination of fresh issue of 7.01 lakh shares aggregating to 9.81 crore and offer for sale of 4.03 lakh shares aggregating to 5.64 crore. The SME IPO opens for subscription on September 21, 2023 and closes on September 25, 2023. Hi-Green Carbon IPO is a book built issue of 52.80 crore. The issue is a combination of fresh issue of 59.9 lakh shares aggregating to 44.93 crore and offer for sale of 10.5 lakh shares aggregating to 7.88 crore. The SME IPO opens for subscription on September 21, 2023 and closes on September 25, 2023. Mangalam Alloys IPO is a fixed price issue of 54.91 crore. The issue is a combination of fresh issue of 61.26 lakh shares aggregating to 49.01 crore and offer for sale of 7.38 lakh shares aggregating to 5.90 crore. The SME IPO opens for subscription on September 21, 2023 and closes on September 25, 2023. Marco Cables & Conductors IPO is a fixed price issue of 18.73 crore. The issue is a combination of fresh issue of 26.01 lakh shares aggregating to 9.36 crore and offer for sale of 26.01 lakh shares aggregating to 9.36 crore. The SME IPO opens for subscription on September 21, 2023 and closes on September 26, 2023. Organic Recycling Systems IPO is a fixed price issue of 50.00 crore. The issue is entirely a fresh issue of 25 lakh shares. New Listings: Shares of the mainboard IPO will get listed on stock exchanges BSE and NSE on September 18. Shares of the mainboard IPO will get listed on stock exchanges BSE and NSE on September 21. Shares of the SME IPO will get listed on BSE SME on September 21. The refunds will be initiated on September 18 and shares will be credited to demat accounts on September 20. Shares of the SME IPO will get listed on NSE SME on September 18. Shares of the SME IPO will get listed on NSE SME on September 21. The refunds will be initiated on September 18 and shares will be credited to demat accounts on September 20.

Inside the buzzing business of sleep

New Delhi: It’s a Japanese folklore called The Moon Princess. A poor couple discovers a baby girl inside a bamboo stalk and takes her in as a divine blessing. They name her Kaguya-hime and raise the child as their own. Kaguya-hime grows up in the idyllic countryside, the word of her beauty travelling far and wide. But she spurns every suitor, including the emperor of Japan, and returns to where she came from—the moon. The story, more than 1,200 years old, is listed on an app called Neend, literally meaning sleep. Following her own struggles with sleep post-covid, 32-year-old Surbhi Jain, an IIT Bombay graduate, started Neend in mid-2021. Its USP is bedtime stories told in a languid tone, peppered with simple instructions on how to prepare oneself for sleep: not just turning off the lights but how to breathe, relax each part of the body and let go of the day gone by. Neend takes a leaf out of internationally hit podcasts such as ‘Sleep with me’ by Drew Ackerman who tells boring stories with a generous dose of humour, lulling his listeners to sleep. “Our narrators have a calm and familiar tone which helps listeners relax. The voices are carefully curated, based on research on what frequencies are soothing to the ears," Jain said. The plots are unhurried, to ensure one does not get all excited. Alongside app-based podcasts, which Jain claims has 30,000 daily listeners, Neend has also ventured into sleep solution products like melatonin gummies—a hormone which induces sleep in response to darkness—and herb-based relaxants. It also offers therapy and counselling services by connecting users to sleep experts. An annual subscription to the app costs 699. “We think of ourselves not as a content or an e-commerce venture but a sleep and relaxation company," Jain said. Neend, in a way, stands apart as a unique venture in an promising to deliver a restful night of sleep to customers. This market comprises new age mattress companies, makers of breathing devices and nutraceuticals, wearable sleep trackers such as smart watches and wrist bands, and medical practitioners urging their patients to get a sleep study done—to diagnose serious underlying conditions like sleep apnea. Biological rhythms But should one obsess over sleep? For Sagar Bishnoi, the answer is an unequivocal yes. Now 29, Bishnoi, a Delhi-based environment professional, struggled for years to get a good night’s sleep. The earliest memory, which he said is printed in his brain, dates to a morning when he was just 12. Unable to wake up on time, Bishnoi had reached school late. He was publicly admonished for frequently coming late for the school assembly. He felt humiliated. Later, even as he graduated from college and took up a job, the distress over sleep never left him. “I would go to bed on time but not fall asleep. The deepest sleep came only towards morning. I would miss alarms and phone calls. I used to wake up tired and feel sleepy mid-day while at work," Bishnoi recalled. The trauma of sleep deprivation led Bishnoi to box himself as a night owl. But thankfully, after a year of concerted effort, Bishnoi managed to fix his problem last year. The break came after he realized the importance of circadian rhythm—bodily functions which control temperatures, hormone secretion and the cycles of sleep and wakefulness. These bodily rhythms are often impacted by external factors like exposure to light, ambient temperature and eating or drinking habits. Exposure to light blocks release of melatonin, a sleep-inducing hormone produced by the brain in response to darkness. Conversely, anxiety leads to elevated levels of cortisol, a stress hormone, which interferes with normal sleep. While cortisol levels rise and fall with the sun, melatonin levels move in the opposite direction, maintaining the body’s circadian rhythm. Why is sleep important? During sleep, memories are consolidated—transferred from short term to long term storage sites—and the metabolic waste generated in the brain due to nerves firing through the day is cleared, explained Swami Subramaniam, neuroscientist, and author of the book Mastering Sleep. Sleeping less can severely impair daily activities as well as affect long-term health. For instance, a 2018 study of 10,000 individuals, published in the journal Sleep, found evidence of cognitive impairment among adults sleeping less than the recommended 7-8 hours in a day. The sleep deprived found it difficult to learn new things, concentrate, make decisions, or react to a situation. The long-term health impact is more damaging. A growing body of evidence links sleep loss to chronic conditions like obesity, hypertension, type-2 diabetes, anxiety, dementia, depression, and Alzheimer’s disease. Data on sleep deprivation in India is sparse and mostly comes from non-official sources. According to a LocalCircles survey released in March this year, more than half (55%) of respondents said they got less than six hours of ‘uninterrupted’ sleep in a day. A little over fifth said they were not even sleeping for four hours. Interruptions lead to poor quality sleep by disrupting different stages of a sleep cycle. The cycles usually move from three non-rapid eye movement (non-REM) stages of light to deep sleep, to rapid eye movement (REM) sleep—when dreams happen. These cycles keep repeating through the night, allowing the brain and the body to recuperate. Another survey, by Wakefit—a mattress and sleep solutions startup—released in 2023, showed a high incidence of self-reported insomnia: one in three respondents. Almost 90% of the respondents said they woke up once or twice during the night, with 60% saying they got up in the morning not feeling well-rested. Nearly 45% of respondents said social media browsing kept them awake at night. Worries about the future, finances and work were the second most important reason which kept people awake. Melatonin to mattress Due to the changing nature of work and bizarre sleep routines, insomnia is now a common complaint, said Akanksha Jha, pulmonologist and sleep disorder specialist at Kailash Hospital, Greater Noida. According to Jha, many who struggle to sleep regularly pop melatonin supplements or sleeping pills. Melatonin products are now readily available on e-commerce websites or as over-the-counter drugs. As per Future Markets Insights, the melatonin market in India is expected to cross $10 million by 2033. The small size of the market has not deterred established and relatively unknown brands to test the waters. A check on e-retail outlets throws up numerous options for melatonin sold as tablets, syrups and gummies, often punched with vitamins and natural ingredients like chamomile, lavender and other herbs. Earlier this year, Procter and Gamble launched a melatonin sleep gummy named Vicks ZzzQuil Natura, a product which it claims is non-addictive with no next day drowsiness. The makeover of India’s organized sector mattress market—estimated at $240 million in 2023 by Statista—is no less interesting. Most mattress manufacturers, including established ones like Sheela Foam and Kurlon are now pitching themselves as sleep solutions companies, promising that their products will help customers ‘sleep like a pro.’ The startup ecosystem is also flush with mattress makers which include the likes of Wakefit and The Sleep Company. “While working on the design, we realized that consumers were paying a steep price for mattresses which hamper blood flow and leave a mark on the skin," said Chaitanya Ramalingegowda, co-founder of Wakefit which began operations in 2016. The startup has seen its annual revenues surge 22% year-on-year to 825 crore in 2022-23. “Our mattresses are designed to ensure that the spine is aligned correctly and one wakes up without pain. The products are tested for breathability, firmness, and humidity (control)," Ramalingegowda added. The Bengaluru-based startup, which claims to have served two million customers, has a unique policy for its employees. They are entitled to a 30-minute nap every afternoon to ‘recentre and recharge’ themselves on recliners placed in an air-cooled and dark nap room. In addition to medical supplements and mattresses, a growing number of consumers are now using sleep monitoring devices which include wearables like smartwatches and wrist bands. Data from Statista shows that shipments of smartwatches to India jumped to 31 million units in 2022, from just 12 million units the year before. Popular smartwatch brands like Apple and Fitbit help consumers track duration and time spent in different sleep stages—like REM and deep sleep—as well as snoring patterns, which can alert users to serious medical conditions like obstructive sleep apnea (OSA). In OSA, breathing can stop and resume repeatedly. In obese patients, fat deposits around the upper airway obstruct breathing. This not only makes it hard to reach the deep and restful stages of sleep—leading to daytime fatigue—but also increases the risks of a stroke or a heart attack due to a sudden drop in blood oxygen levels. Costly sleep study To check for sleep apnea, patients need to undergo a sleep study where sensors track the activity of multiple body systems, including heart, brain and the respiratory system, over the course of a night. According to sleep specialists, sleep apnea is common but many patients hesitate to get a sleep study done since it is expensive, costing between 30,000 and 40,000. Some are also averse to using a continuous positive airway pressure (Cpap) machine which delivers continuous pressurized air into a mask that one must wear while sleeping. The sleep apnea devices market in India was estimated at $121 million in 2021, as per an estimate by TechSci Research, and the segment is forecast to cross $200 million by 2027. The growth, the report said, will be driven by factors like an ageing population, increasing pollution levels leading to higher incidence of respiratory disorders, and rise in lifestyle diseases like hypertension and obesity. The boom in medical services catering to sleep disorders is already visible. Today, most major cities in India have multiple sleep clinics where patients can get a sleep study done and take medical advice. “Four out of 10 patients who come to us suffer from sleep apnea. The remaining cases consist of insomnia and circadian rhythm disturbances," said N. Ramakrishnan, founder of the Nithra Institute of Sleep Sciences, Chennai, which was set up in 2004. Ramakrishnan, who is also director of critical care services at Apollo Hospitals, said that the number of patients visiting the sleep clinic has multiplied manifold in recent years, with rising awareness and growing sleeplessness. He often gets patients who appear like overworked zombies, yet complain of declining productivity at work. Many admit to popping anti-anxiety medicines and cough syrups—without visiting a doctor—just to get a few hours of sleep. “It is ironic that medical insurance does not cover sleep treatment and breathing devices (like Cpap) since the treatment does not require hospitalization. Only when sleep deprivation leads to bigger troubles like a heart attack or stroke, insurers step in," Ramakrishnan added. Darkness is bliss The cost of sleep deprivation goes beyond personal health. A 2017 study published in the RAND Health Quarterly warned about the high economic costs of insufficient sleep, estimated at $680 billion a year in five OECD countries—including, $400 billion for the US and $60 billion for Germany. Lost sleep impairs productivity and performance at work, coupled with higher absenteeism. OECD is short for Organisation for Economic Co-operation and Development. According to Charles A. Czeisler, professor of sleep medicine at Harvard Medical School, the often-glorified corporate executive who logs 100-hour workweeks or lives out of a suitcase in multiple time zones is endangering themselves, putting their companies at risk. The more we light up our lives, the less we seem to sleep, Czeisler wrote in a Nature piece published in 2013. “Sleep is essential to our physical and mental well-being, so it is vital that we learn more about the impact of light consumption and other ways our 24/7 society affects sleep, circadian rhythms and health," he added. Lest one is drowned by the wave of sleep hacks on the internet, the US Centres for Disease Control and Prevention offers some useful tips for a good night’s sleep. Be consistent and follow a routine. Make sure, the bedroom is quiet, cool, dark. Stay away from all electronic devices including mobiles, laptops and television. Avoid large meals and caffeine before bedtime. And go, get some exercise during the day. Sagar Bishnoi has been doing exactly that to fix his sleep. But when friends and family come visiting his bachelor’s pad in Delhi, they are often left wide-eyed. Dim lights or a candle placed at floor-level late evening, gentle wafts of cool breeze, a mild sandalwood fragrance hanging in the air. “Kya mahol banake rakhha hai (what mood have you created, man)," they would say. Bishnoi takes the jest lightly. He is not worried about his preoccupation with sleep taking a toll on his social life. “But once in a while I do break the rules when it’s worth it."

Small-Caps: just volatile, or are they also risky?

Indian markets have had a fantastic run during the last quarter, particularly due to a spectacular performance from the Small Cap Index that delivered around 20% returns. It is interesting that 46% of stocks have run up more than 20% during the last quarter—underlining the broad-based euphoria. With this kind of performance, it’s natural to hear murmurs around “risk of equity investing" at these levels – more particularly in small caps. But, is small-cap investing really risky or is it just volatile? Volatility implies that prices correct and rise, rapidly and erratically due to a variety of reasons, ranging from investor sentiments to domestic indicators to global causes and liquidity. Most academics refer to volatility as a risk to consider while investing. But is price movement really a risk? Risk refers to the potential financial loss inherent in any investment decision. It is the probability of permanent capital loss which usually takes place due to shortcomings in the business or the industry or both, rather than market movement (volatility). To a large extent, both these phenomena tend to go hand-in- hand in the short term, with most investors believing that volatility is indeed risk. However, in the long term, one realizes that these two phenomena are completely different—while one needs to protect capital against risks, one can use volatility as an opportunity to create disproportionate wealth. To understand whether small-cap investing is truly risky or not, we have to first to understand the two types of risks: systematic and unsystematic. Systematic risk is broadly external factors beyond control that affect more than just one stock, they affect the entire market or industry. Unsystematic risk is one that is stock-specific risk, which affects a said organization alone. However, these risks can be avoided by thorough due diligence, research, and understanding how any stock and related industries work. So being vigilant is important. But are these risks only specific to small-caps? History suggests otherwise. We’ve seen large reputed organizations fall prey to both these risks, for example when Yes Bank crumbled due to its poor corporate governance standards (unsystematic risk) or when HEG/Graphite corrected substantially due to a change in the steel-graphite cycle (systematic risk). Large-caps are not immune to risks, they are just less volatile, because they are normally well covered by brokers, traded into by institutions and have adequate float. The lack of information available on small-caps, the lack of discovery, the lack of free-float and the untested managements of small-caps is what leads to excessive volatility, but this is also what leads to superior returns. Small-caps, like large-cap investing, is only risky when one doesn’t understand the underlying business. Like Warren Buffet famously said, “risk comes from not knowing what you’re doing". Businesses do not function in a linear manner and often go through execution challenges because of multiple external factors. Resultantly, their underlying stock prices also go through various swings during this journey. From an investors perspective, it’s extremely important to understand this non-linearity of business and factor this in the underlying valuations when buying a particular business. This itself helps it see through the volatile phase of the stock prices. Another aspect that one may look at it while taking advantage of volatility is to stagger one’s investment and build it up. In the short run, stock prices do tend to behave erratic (volatile) for reasons beyond the business fundamentals. For instance. if one looks at Titan’s journey from being a small cap company with a mere 1,018 crore market cap in 2005 to a staggering 2.68 trillion market cap today– this journey over the last almost 18 years has been laden with a lot of volatility with the stock price going down by more than 30% at least seven times! It would have been a missed opportunity for investors who found the small-cap Titan to be ‘risky’ because it fell more than 30%! Simply put, small-caps don’t generate superior returns because they are riskier. They do so because they are more volatile.

Are multi-asset funds the right product in a soaring market?

Diversification is the only free lunch," Nobel Prize-winning economist Harry Markowitz has said. But how do you define diversification? How many asset classes should you invest in and in what proportion? Domestic mutual funds seem to be thinking hard about this question. Several fund houses have come up with a solution by renewing their focus on multi-asset funds in recent months. Edelweiss Mutual Fund (MF), DSP MF, Kotak MF, WhiteOak Capital MF have all recently launched their new fund offers. More are in the works. To be sure, multi-asset funds have been around in the country for at least 10 years. Multi-asset funds are allowed to invest in various asset classes—equity, debt, gold, silver, commodities, international equities, futures & options, investment trusts, infrastructure investment trusts, etc. They are seen as a one-stop solution for every investor’s asset allocation needs. But not all multi- asset funds are the same. Some invest in international equities; others do not. Some tend to keep their equity exposure low; some can take it much higher. Also, every multi-asset fund is taxed differently. Here is what you need to know about these funds. Past performance The top-five multi asset funds in terms of assets have delivered three-year rolling returns of 12% on an average between 1 January 2016 and 14 September 2023. These funds have delivered a maximum of 30% three-year returns; the minimum is -2.4% ( ). Only those funds that have been in existence for more than five years have been considered for calculating the returns. A well-managed multi-asset fund can help investors reduce overall volatility on their investments. The funds analysed showed a standard deviation of 5.7% on an average. Standard deviation is a measurement of volatility. Ihab Dalwai, fund manager at ICICI Mutual Fund, says equity has historically delivered higher returns than other asset classes, while a multi-asset fund can help reduce the volatility risk that comes with investing in a single asset class like equity. “In the current environment, with high equity valuation and corporate profitability relative to gross domestic product (GDP), we believe our multi-asset fund should have less equity exposure than what we have maintained in the past three years," Dalwai says. Data shows that during 2008 financial crisis, the maximum drawdown shown by Total Return Index (TRI, which captures returns and dividends) was 59%, while a multi-asset portfolio comprising 50% equity, 25% gold and 25% debt saw a drawdown of 27% over the same period . Similarly, the Nifty TRI showed maximum drawdown of 38% during the , while it was 18% for a multi-asset portfolio. “We thought this is a good time to offer a fund that can help investors diversify across different asset classes. Right now, equity valuations don’t appear that attractive and gold could potentially enter a bull market. Our analysis suggests that the dollar is likely to see a downtick or slight weakness, which can push up gold prices," says Sahil Kapoor, head of products and market strategist at DSP Mutual Fund. Among the new multi asset funds getting launched, Kotak MF is launching a second asset allocation fund. Its first one is a fund of fund, which invests in units of equity , sector funds, gold funds, debt funds, international funds, etc. Devender Singhal, fund manager at Kotak MF, says the new fund will be directly investing in stocks (not via other mutual funds), which will allow more flexibility and agility in managing the portfolio. What works According to Kavitha Menon, founder of Probitus Wealth, multi- asset funds can be a convenient way for investors to re-balance their investment portfolio. “To reduce volatility in one’s portfolio, investors need to rebalance their portfolios at regular intervals, i.e. reduce exposure to investments that have seen significant run-up. However, selling an investment has a . In a multi-asset fund, the investor doesn’t face any tax liability when the fund manager decides to tweak the fund’s exposures," Menon points out. “There are also operational challenges of convincing investors to change their asset allocation and get them to execute it in a timely manner," she adds. What doesn’t Kirtan Shah, founder and chief executive officer of Credence Wealth, says that investors should not solely rely on multi-asset funds for their asset allocation needs. “The fund’s asset allocation and investor’s requirement may not always match. Further, linking multiple financial goals within one investment also may not work. Investors should look for a multi-asset fund that behaves like one and not focus too much on how the fund’s asset allocation impacts its tax status," Shah adds. According to Shah, investors should look for funds that are looking to offer 100-150 basis points higher returns than debt funds. “Extreme returns in such funds could be a reflection of a high-risk strategy," he says. Taxation The tax treatment of multi-asset funds depends on the asset allocation followed by the fund. For example, if the fund maintains 65% equity exposure (including equity derivatives), it will be treated like an for taxation purpose. So, long-term capital gains of more than 1 lakh will be taxed at 10% after one year of holding. Gains below 1 lakh will be tax-free. Short-term capital gains will be taxed at 15%. Union Budget 2023 had removed the indexation benefit for mutual funds with up to 35% equity exposure. So, if the fund maintains 35-65% exposure to equity, it will not get equity taxation, but still get indexation benefit. In this case, for investments held for more than three years, the long-term capital gains will be taxed at 20% with indexation benefit. Indexation is adjusting the purchase price of the investments to reflect the impact of inflation. The short-term capital gains will be taxed at investor’s slab rate. What investors should do As multi-asset funds involve managing investments across different asset classes, it is important to go with fund houses that have the capability and track-record of dealing with different asset classes. “Fund houses that are good with their macro calls can typically manage the multi-asset funds well," says Ravi Kumar TV, founder of Gaining Ground Investment Services. When considering a fund for your portfolio, check whether the fund’s asset allocation meets your risk and return expectations. For example, if you are conservative investor, a fund with high equity exposure may not be suitable. If you are a moderately aggressive investor, a fund with very little equity exposure may not work for you. Also, check how the fund’s asset allocation has moved in the past, especially during turbulent periods, and whether you are comfortable with such changes.

Classes With News18: Tourism's Contributions to Global Trade and Sustainable Development

Travel and Tourism is more than simply a fun getaway. It includes a broad range of activities, such as business travel, medical tourism, cross-cultural interactions, and more. It has thus developed into one of the biggest and most significant industries worldwide. The tourism industry has developed into a vibrant, diverse sector of the economy that is of paramount significance. Tourism, in addition to providing visitors with leisure and cultural experiences, has developed as a major trade mechanism that promotes economic growth and exchanges while also considerably increasing cross-border cooperation. Let us understand the business of tourism and its impact on economy and sustainability in this week’s Classes With News18. The tourism sector was significantly impacted by the COVID-19 pandemic when both domestic and international travel was put on hold for a while due to travel restrictions, lockdowns, and safety issues. The pandemic brought to light the tourist industry’s vulnerability and the requirement for better adaptation and resilience. However, as the global economy begins to revive, tourism is once more emerging as a significant trade mechanism. The United Nations World Tourism Organization (UNWTO) forecasts that international tourist arrivals will increase to 80 – 95 per cent of pre-pandemic levels this year. Tourism has a significant role in the framework of the world economy since it creates a lot of income and employment possibilities. The worldwide travel and tourism operations contributed 7.6 per cent of the world’s GDP in 2022, up 22 per cent from 2021, according to the World Travel and Tourism Council (WTTC). The economic impact of tourism as a channel for international trade is one of its most salient features. Tourism directly and indirectly contributes considerably to the GDP of many countries. Tourism-related spending on lodging, dining, travel, and other services are considered direct contributions. Indirect contributions are generated by the ripple effect of tourism expenditure, which stimulates growth in allied businesses such as hospitality, transportation, and retail. India has been a significant participant in the world of tourism thanks to its varied landscapes and rich cultural history. India’s economy is greatly impacted by tourism, which makes large contributions to both GDP and foreign exchange earnings. Regional development has also been boosted by tourism. Significant infrastructure upgrades have made popular regions like Rajasthan, Kerala, and Goa more accessible and desirable. In addition, tourism helps rural regions by boosting local economies through community-based programmes like homestays and local artisan sales. While tourism provides various economic benefits, it also confronts obstacles, notably in terms of sustainability. The travel and tourism sector is changing in favour of sustainable and green practices in response to rising environmental concerns. As in many other nations, ethical and responsible tourism that minimises adverse environmental effects and promotes local communities is becoming more and more of a priority in India as well. National parks and wildlife sanctuaries promote eco-tourism by supporting animal protection and providing tourists with the opportunity to admire different flora and fauna responsibly. Preservation of cultural heritage is another goal of sustainable tourism, which goes beyond environmental preservation. Such initiatives guarantee that tourist places are sustainable for future generations while preserving their distinctiveness. A forum for discussing global issues and solutions was offered by India’s G20 Leaders’ Summit Presidency over the last few days. The “Goa Roadmap for Tourism as a Vehicle for Achieving SDGs" was revealed during this summit, demonstrating a serious commitment to the utilisation of tourism for sustainable development. The Goa Roadmap lays out a plan for long-term global tourism and highlights tourism’s potential to help the United Nations achieve its Sustainable Development Goals (SDGs). The roadmap emphasises five interrelated goals, including Green tourism, Digitalisation, Skills, Tourism MSMEs, and Destination Management, and provides a comprehensive approach for countries to integrate their tourist policies with the Sustainable Development Goals (SDGs) 2030 of the United Nations. Explore other career options with us: Career in Sound Designing, Sound Engineering | Sustainability Professional | Yoga & Naturopathy | Software Testing | Medical Coding | Cloud Developer & Cloud Architect | 3D Technology | Garment Technologist | AI & Robotics | Fashion Designing | Supply Chain Finance | Animal Welfare | Public Relations | Gaming Industry | Functional Nutrition |