A Study on Growth of Tourism Industry and its Impact on Indian Economy

  • Ashaq Hussain Ganie Ph.D Research Scholar, Department of Economics, Bharathiar University, Coimbatore, Tamil Nadu, India
  • B Vanitha Professor, Department of Economics, Bharathiar University, Coimbatore, Tamil Nadu, India
Keywords: Tourism, Growth, Impact, India

Abstract

Tourism is an economic activity of immense global importance. Perhaps there is hardly any other field of activity where so many people are involved directly or indirectly. Tourism is often portrayed as panacea for many evils such as underdevelopment, unemployment, poverty, social discrimination and so on. Tourism is the largest service industry in India, with a contribution of 6.5 per cent to the national GDP, providing 7.7 per cent of the total employment. India witnessed more than 8.2 million foreign tourist arrivals and 1436 million domestic tourist arrivals in 2015 (WTTC Reports). The tourism industry in India generated about US$ 100 billion in 2008 and that is expected to increase to US$ 275.5 billion by 2018 at a 9.4 per cent annual growth rate. As per WTTC Report 2017 India is
expected to establish itself as the fourth largest Travel & Tourism economy by 2027, both in terms of direct and total contribution to GDP, only behind China, the USA and Germany it is thus imperative to examine growth of tourism industry in India and its impact on Indian economy. To attain aforesaid objective tourist arrivals both foreign and domestic and share of India in World arrivals and Asia and Pacific Region arrivals for last fifteen years have been taken into consideration and to find the impact of tourism on Indian economy three broad elements have been taken into consideration that is role of tourism in GDP, contribution of tourism to employment and foreign exchange earnings from tourism. The study is descriptive and analytical in nature and entirely based on secondary data. Compound Annual Growth Rate, Instability Index, and Linear Growth Rate has been used to highlight data pertaining to the said objectives The result shows that tourism has a tremendous role in economic growth of the country. Therefore, as a part of the policy implications it is necessary that all wings of the central and state governments, private bodies and voluntary organizations should become the active partners in the endeavor to attain sustainable growth in tourism and overall economy as well.

Published
2017-09-30
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How to Cite
Ganie, A. H., & Vanitha, B. (2017). A Study on Growth of Tourism Industry and its Impact on Indian Economy. Shanlax International Journal of Economics, 5(4), 54-64. Retrieved from https://www.shanlaxjournals.in/journals/index.php/economics/article/view/730
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