Luxury Yachting Industry in India
In ancient times, India was well known for its prosperity, education, and science. The Portuguese came to India in 1498 to trade in spices. In the 1600s, the Dutch, French, and English followed and established their own trading centers in the country. The British East India Company was very aggressive in expanding its trade and soon began trading many commodities including cotton, silk, salt, opium, and tea. The Company had its own private army to protect its trading posts. This gave rise to conflicts between the local rulers of India and the British East India Company. The British government sent a larger force to India and provided funds to expand the British Indian Army. Soon the British were not just traders but became the rulers of India and were generating more revenue by taxing the locals. By 1819, the British controlled almost all of India.
As trade grew, the British had to build India’s infrastructure to move their armies and goods efficiently. After a long struggle for freedom, India finally regained its independence in 1947, when the British left India. India used its freedom to opt for democracy, but soon suffered from heavy corruption and national power struggles. One of the biggest challenges India faced was the sheer number of languages and the different religious castes that divide the society. Politicians had to put all their energy and power to keep the country together. Many states wanted their own freedom based on their religion, language, and geographic location. During this time, the development of industry and infrastructure in India was very poor. Even today, although India is one of the largest economies in the world, poverty is still a huge problem. But looking at this from a different point of view, this also presents a great economic opportunity for India.
India has been growing steadily since the year 2000. Unfortunately, for many years the government was notorious for corruption, scams, and misuse of public funds. In 2014, the people of India voted to remove the corrupt government. The new government, elected in 2014, is more focused on infrastructure development, tax reforms to attract foreign investment and create industries, and cutting lengthy red tape to make it easier for people to set up businesses. The government also intends to make India the largest manufacturing hub in the world. There are also plans to transform 100 existing cities into high-tech smart cities by rebuilding their infrastructure, using renewable energy to generate power, and using the Internet to deliver services. India’s luxury market has also been growing significantly since the year 2000. There are all kinds of expensive luxury cars on the roads, the auto industry is growing, and big-brand shopping malls are springing up in all major cities. The cost of living is no longer cheap. Real estate prices in Mumbai, for example, which is known as the financial center of India, are among the most expensive in the world.
According to Forbes in 2015, India ranks fifth in the world for having the most number of billionaires, 90. The number of millionaires in India was around 182,000 in 2014 and is expected to grow up to 50% by 2019. The main India’s economic sector in 2014 was the service sector, which mainly comprised the IT industry and outsourced call centers for banks and airlines around the world. India’s manufacturing sector is also one of its major contributors to the economy, for example, the manufacturing of pharmaceuticals, textiles, automobiles, and machinery. Other significant sectors are mining, raw materials such as iron and copper, and agriculture. India has made a conscious effort to shift the focus of the economy from agricultural to industrial. India’s service sector is comparatively new and employs mainly the young and educated. This sector has greatly increased the growth rate of the educated middle class in India. The country is experiencing steady growth in the high-tech industry and the wealth of the middle class is increasing due to increased technological innovation. What this means for the yachting industry is that India has a potentially large market for cheap speedboats and yachts for India’s adventurous youth. The country is also surrounded by beautiful waters along its more than 7,500 km of coastline, with a huge ocean for the locals to enjoy.
What has held India back is not only the slow development of infrastructure, but also corruption within the government, leading to the development of the wrong type of infrastructure, which does not benefit the public. India’s bureaucracy also makes it difficult for entrepreneurs to set up businesses. Other problems, such as crime and ongoing religious conflicts, have also led to a brain drain. Many of India’s educated workers, such as doctors, scientists, and engineers, have left the country to settle in the US, Europe, and other developed countries. Many have achieved great successes abroad, which they would not have been able to achieve in the Indian system.
As for the yachting industry, there is enough visible wealth in India for it to flourish, but the previous government never paid attention to it. It was like they didn’t care or understand this industry at all. The tax on private yachts in India is currently 48.7% and to make matters worse, there is not a single decent sports club in the entire country. In recent years, some companies have struggled to succeed in the yachting industry, but have received no support from authorities or assistance in establishing infrastructure. Some companies have built a small private sports club facility in the southern part of India, but it is nowhere near the international standard. The yachting industry also suffers because there are not enough private yachts in the country to generate enough profit for the companies to survive.
That said, the country’s underdeveloped nautical infrastructure also provides potential for further growth. If the government starts to take the industry seriously, encourages the private sector to develop sports clubs, and provides space and assistance for small businesses to set up facilities, the Indian yachting industry can achieve rapid growth. The Indian authorities must also understand that the country needs a new industry, such as boating, to create jobs, generate income and diversify the economy.
Some of the Indian car manufacturers have dabbled in boat manufacturing but on a very small scale. The good news is that the government that was elected in 2014 is very interested in creating a better economy and has proven to be more active than the previous government. They are also interested in adjusting their tax system to create a business-friendly environment and, like Indonesia, are trying to set up automated and transparent online systems for licensing individuals to set up businesses. This could be a very positive development for the future of the country, and if the yachting industry constantly strives to work with the government, India could potentially become a major consumer and manufacturer of luxury yachts in the next 10 years.
I hope you found this article useful.
happy boating
For more information on the Asian boating industry, visit http://www.asia-boating.com
