The Global Life: India Unvarnished

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Visitors to the Taj Mahal all confront the same eternal mystery: How could the people who fashioned the world's most serene monument to love also build on its doorstep one of the ugliest, filthiest and most cacophonous cities in existence? If the heartbroken Shah Jahan's mausoleum for his wife Mumtaz Mahal is everything India should be--spiritual, awesome, peaceful--Agra, with its choking traffic, litter-strewed dirt roads and throngs of grotesque beggars is everything it unfortunately still is. "This not what I expected," says Camilla, 22, a psychology student visiting from Sweden. "Not at all. I mean, you're in Indiayou've got to see the Taj, the lovely, beautiful Taj. But all I've been doing since I got here is shouting and screaming at ricksha drivers. The whole thing is just one big irritation."

But even if a passage to India isn't for the fainthearted, the country is fast becoming a hot spot for the jet set. A growing global awareness of Indian culture--thanks to offerings like Bend It Like Beckham, the writings of Jhumpa Lahiri and modish curry cuisine (not to mention Indian software and telephone expertise)--has raised the subcontinent's profile and put it firmly on the traveler's map. The number of foreign visitors to India last year rose 16.5%, to 2.75 million, and the World Travel & Tourism Council predicts India's tourism industry will grow by 7.9% over the next decade, to $28.4 billion, or 4.8% of GDP. India's normally lackadaisical tourist authority has helped refine the allure with an advertising campaign featuring a stunning series of photographs of attractions ranging from Himalayan peaks to deserted, pristine beaches to Ayurvedic massages--all accompanied by the slogan "Incredible India." The tourism industry is experiencing its "best year ever," says G.P. Francis, general manager of the award-winning boutique Malabar House in Kerala, a southern coastal state that rivals Thailand as the home of the Asian spa.

Hotels across the country were fully booked last month and are warning of an acute room shortage. In Udaipur, the general manager of the famed $400-a-night Lake Palace Hotel, Peter Whyne, says this year's bookings have taken a quantum leap. "The music, the food, the fashion, Incredible India, the IT industry--it all adds up and generates a curiosity and gets India into people's consciousness," he says. "People are riding that all the way here." Here, in this case, means India's most famous hotel, a former maharaja's palace that rises like a colossal wedding cake out of a lake in the Rajasthani desert.

As a result, nearly every high-end chain is expanding. The Shangri-La, Oberoi, Le Meridien, Hyatt and Taj chains are either upgrading or searching for new properties. In Rajasthan, for example, which shares a border with Pakistan, the ritzy Amanresorts International is opening two exclusive destinations, one a tented camp near a famous tiger reserve and the other, a hotel inside a palace in the so-called Blue City of Jodhpur, where virtually all the buildings are painted the same bright hue.

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Developed for the World Economic Forum by Professor Xavier Sala-i-Martin, the Global Competitiveness Index (GCI) measures the competitiveness of nations using economic statistics and extensive polling of international business leaders.

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