Effect of Tourism Industry On Indian Economy

The tourism industry is contributing enormously to the Indian economy as the country has too many things to offer to the tourists from all over the world. With a variety of topography set here and the beautiful structures that need to be explored along with the thousands of years of traditional and customs, India stands today to be one among the most favored destination for the tourists of the world.

The growth of tourism in India

The growth has been stupendous since the last few years. The growth is calculated in terms of vacationers and business done here. Today, tourism is among the largest service industry in the country that contributes to around 6.23% of the national GDP and provides 8.78 % of the total employment. Currently, the country is visited by around 5 million annual foreign tourists and 562 million domestic tourism visits. The tourism industry is set to increase by 2018 by $ 275.5 billion at 9.4 % annual growth rate. Research shows that the country will be a hot spot for tourists by 2018 with the highest growth potential from 2009 to 2018.

Current position

India ranks 14th best tourists destination for its natural resources. It ranks 24th when it comes to cultural resources and various world heritage sites. The country stands 37th in the world tourism when it comes to air transport network and 5th in the long term growth. Today we see that the tourism sector will reach the second position by 2019. India also bagged the 5th place for authenticity and art and culture.

Effects of tourism in Indian economy

The tourism sector has brought about many positive impacts on the Indian economy, and this has also shown in the society.

1. Source of foreign exchange

With tourism, the country receives foreign exchange directly, and that impacts the country’s economy favorably. The industry is set to generate around $275.5 billion by 2018.

2. Effects on employment

Tourism sector increases the possibility of employment as it is a service sector and needs manpower on a larger scale in every field of tourism. It has provided income to various people from all fields of life and even in the remote areas. The national GDP is 8.78% from the tourist sector with around 20 million people directly working in the tourism industry.

3. Preservation of the national heritage

With the tourism sector developing, the government is keen to protect the national heritage sites that are found all over the country and along with it the natural resources and environment. There are various forests, wildlife and flora and fauna that are now getting protection.

4. Infrastructure development

The growth in tourism also boosts infrastructure development. It helps to improve the transport systems, roads, heath care centers, entertainment facilities and various other things. Thus, it also helps other sectors to develop and contribute to the national economy.

The effects are positive on the Indian economy through tourism. There is more to be done in this sector as there is much scope as well.

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