The Indian economy is starting to gain traction and the S&P BSE 100 INDEX (INDEXBOM: BSE-100) has risen 25.4% in the last year.
India is becoming more popular as a business destination and the government has recently come out with a plan to recapitalise the SOE banks to stop bad debts and non-performing loans, so they can focus on growth.
There is also a substantial demand for Indian exports, which has shot up 25.7%.
While the focus is mainly on China's tourist numbers, India's rising middle class and growing economy will ensure a growing numbers of tourists from the world's second-most populated country to Australia.
The United Nations tourism board predicts up to 50 million outbound Indian travellers by 2020.
This has the potential to be worth around $2 billion to the Australian economy by the end of the decade and Australia is an aspirational destination for Indian travellers.
While not essential, direct flights to Australia are preferred by Indian travelers and airports are looking to make air travel more accessible to India and this could give Sydney Airport Holdings Pty Ltd (ASX: SYD) a potentially large boost in traveler numbers, which could keep the rise in earnings and dividend increases of recent years intact.
The Sydney airport traffic performance showed international passenger numbers were up 7.6% on the previous year.
India was number 7 on the list of top 10 travelers through the airport, up 15.1% for the year to date, so it shows there is a lot of potential still to be realised from India's tourism numbers.
The airport reported a half yearly increase in EBITDA to $577.6 million up 7.7% for the 6 months to 30 June 2017.
With rising wealth in India, Tourism Australia is targeting affluent Indians, and this could benefit Crown Resorts Ltd (ASX: CWN), as Australia's leading luxury accommodation operator, with increased numbers and plenty of luxury facilities encouraging high spending.
The bulk of Indian travelers visit family members studying in Sydney and Melbourne. Crown is currently building a luxury resort in Sydney that will be 6 stars and should be finished in 2021.
Crown reported a NPAT of $343.1 million down 15.5% for FY 2017 due to difficult trading conditions. The company currently has a divided yield of 4.91% and I think with growing wealth worldwide and new building projects, has good long-term prospects
