From nightclubs to publishing, the decriminalisation of homosexuality in the country is facilitating a new, multi-million-dollar niche market.

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As India's homosexuals emerge from the closet following a court order lifting a ban on homosexual sex last year, a small group of pioneers is staking claim to the so-called pink economy that in the United States alone is worth $640 billion a year.

There are no estimates of the size of India's so-called homosexual economy, but a lucrative market for homosexual-focused ventures is not far from reach, given that the global tourist hotspot is estimated by some to have seven crore queer people.

In New Delhi, Mumbai, and Bangalore, trail-blazing entrepreneurs are chasing the homosexual business.

Since July over 15 bars across New Delhi have hosted homosexual events, up from just one event at one bar a week two years ago.

India's first homosexual-products store, Azaad Bazaar in Mumbai, has seen a year of growth, penetrating mainstream stores across the country with its merchandise.

Queer-Ink.com, India's first homosexual online bookshop, is exploring publishing titles in the next six to eight months.Manish Sharma, a homosexual events promoter from New Delhi, hosts regular parties attended by over 200, while Sanjay Malhotra runs India's first homosexuals-only travel agency, IndjaPink.

"In terms of business as well as inquiries, things have really gone up since the ruling," said Malhotra, who spent six months interviewing the hotel managers and tour guides that his company uses to ensure all his holidays are "gay-friendly".

But for those pioneers, a largely conservative society and ingrained social stigma present a bigger barrier than legislation to luring homosexual business.

"We might be legal by law, but we're not yet legal in the mindset," Sharma admitted.

Aditya Bondyopadhay, a homosexual rights activist and lawyer who was integral to the decriminalisation, is realistic about the public perception of homosexuality in India.

"Police harassment, though it has gone down drastically, is still prevalent. We have instances of male rape that still go unchallenged," he said, adding that families still pressurise homosexuals.

For Abhijit Parua, manager of Kuki, a South Delhi bar that hosts one of Sharma's weekly ''BoyZone'' events, this means the current target audience is too small.

"For a week the attendance was very good. Now there is lots of competition, and people are heading elsewhere," he said.

But businesses targeted at homosexuals in India operate not only on the strength of the local economy but also on the goodwill and solidarity of global consumption by homosexuals.

"Every traveller that goes with IndjaPink, we want them to be able to be who they are," said Malhotra, adding that acceptance was a long way off.

"It's in its infancy."