HBI Staff | Hyderabad 
The launch of the Nifty India Tourism Index by the National Stock Exchange of India has sparked optimism among executives in India’s hospitality and tourism sectors. Designed to track the performance of up to 30 companies within the Nifty 500, this index aims to provide valuable insights into tourism-related businesses and foster growth through better benchmarking and investment opportunities.
Currently comprising 17 tourism and hospitality stocks, the index gives top weightage to Indian Hotels Company Limited, the parent of Taj Hotels. Notable inclusions like ITC Hotels, Chalet Hotels, and EIH (The Oberoi Group) further emphasize the sector’s growing prominence.
Mukesh Agarwal, CEO of NSE Indices, highlighted the index’s potential to create investment avenues for asset managers and tools for investors seeking to capitalize on the tourism industry’s growth. This development has been lauded as a turning point for India’s tourism and hospitality sector, which has long struggled for recognition as a significant economic contributor.
Sunder Advani, chairman and managing director of Advani Hotels & Resorts, described the index as a benchmark that underscores tourism’s importance to India’s economy. “This is a positive step in recognizing the industry’s contribution to employment and GDP,” he said, adding that the index could also guide government policy for the sector’s development.
A Step Toward Formalization
The inclusion of hospitality companies in a recognized index signals the sector’s formalization, said Naveen Jain, founder of Nouvelle Knowledge Services. He noted that the index serves as a valuation benchmark, paving the way for more players to list on the exchange and secure funding through public or private means.
“Premiumization and formalization are evident as more star-rated hotels gain recognition,” Jain added. “The index symbolizes improved fundamentals and could inspire the launch of dedicated sectoral funds in tourism.”
Challenges and Aspirations
Despite the enthusiasm, industry leaders remain cautious. Vishal Vithal Kamat, executive director of Kamat Hotels, acknowledged the need for sustained efforts to elevate the industry’s perception in India. “More than a business, we need to be seen as a driver of local and macroeconomic growth,” he said, adding that inclusion in the index places pressure on companies to consistently perform well.
However, Kamat and others warn that the index’s performance will depend on external factors beyond the sector’s control. “Inclusion doesn’t guarantee success, but it sets the foundation for long-term aspirations and accountability,” he said.
Post-Pandemic Growth and Future Potential
India’s hospitality and tourism sectors have shown remarkable resilience since the pandemic, with rising room rates, higher occupancies, and improved profitability driving momentum. Advani emphasized that the industry’s growth is supported by India’s emergence as a global travel hub and improvements in infrastructure, policies, and international collaborations.
“The index reflects the sector’s maturity and resilience, highlighting its increasing contribution to India’s GDP,” Advani said. “It will shape industry trends and investment patterns, creating a more dynamic and competitive ecosystem.”
As Indian hospitality brands gain recognition on the global stage, industry leaders like Kamat take pride in their ability to match international standards. “Indian hospitality is second to none,” Kamat said, expressing hope that his company will soon join the index.
The Nifty India Tourism Index represents a significant step toward positioning India’s tourism and hospitality sectors as key economic drivers. While challenges remain, the optimism surrounding its launch underscores the industry’s potential to attract investment, enhance performance, and elevate its standing in the global market.
