HVS global president lauds India's pro-business policy environment
As he embarks on a quest to rebuild his firm's business in India, the President of US-based global hospitality consultancy HVS – Stephen Rushmore Jr. – has provided his take on the outlook for the country in the near future, making specific note of the Modi administration’s pro-business policies and their promising impact on the market.
While the Indian hospitality sector has been faring particularly well recently, the same cannot be said for global hospitality consultancy HVS. In January this year, majority owner of HVS India Manav Thadani took 42 employees – effectively the entire operation – and formed his own hospitality consulting firm by the name of Hotelivate.
Thadani had been at the helm of HVS India for two decades, leading it into a 60% domination of the Indian hospitality consulting market, and generating 3% of HVS’ global revenues. The exodus was a substantial blow to HVS, but the firm has since made strides towards recovery.
In May, the firm announced a strategic partnership with the newly established but rapidly expanding real estate advisory firm Anarock Property Consultants, with the primary objective of increasing HVS India revenues by as much as 75% over the next two years.
The global President of HVS, Stephen Rushmore Jr. has now offered his perspective on the prospects surrounding these ambitious plans. In a macroeconomic sense, Rushmore was all praise for the pro-business policies under Modi, which includes the Goods & Services Tax (GST) introduced earlier this year.
The GST has reportedly been of particular benefit to the hospitality sector in India, given that the taxes levied on necessities for the industry – such as raw materials, food, cleaning supplies, etc – can now be managed under a single, streamlined process, reducing costs and the required time investment. The new system admittedly caused a stir in the country when it was first introduced, but recent reports have suggested that the economy has since recovered strongly.
A host of other policies have been introduced by the current administration, mostly in the development of infrastructure in the country, with the aim of pushing India higher in the World Bank’s 'ease of doing business’ index. According to Rushmore, this attitude has positioned Modi as a favourite amongst global executives.
“The Indian economy has been stable even after the Fed started increasing interest rates. Growth has been stable, inflation has been managed, foreign exchange reserve is increasing, current account deficit is minimal, and fiscal deficit is declining. So, the Indian economy is stable, And I think, based on the reform efforts like inviting more foreign direct investment, deregulation, and budget proposals for investments in rural and in infrastructure sectors will boost growth,” said Rushmore.
