Indian economy gets a tourism boost; a tenth of GDP and crores of jobs

By: |
April 29, 2019 4:15 PM

India’s phenomenal success in travel and tourism was pushed by several measures that the government undertook.

GDP dataRepresentational Image

Travel and tourism industry contributed a tenth of India’s GDP in 2018 and accounts for 42 million jobs in the country, report says. In India, over Rs 16 trillion were created by this sector alone. The same is expected to double by 2029, reaching Rs 35 trillion mark. Also, the industry has given a major boost to the global economy as well with it contributing over 10% to the global GDP.

India’s phenomenal success in travel and tourism was pushed by several measures that the government undertook. One of these was the launch of the E-visa facility. “The introduction of E-Visa has led to a strong surge in Foreign Tourist Arrivals since its launch in September 2014,”  the joint report from FICCI-Yes bank said.

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Benefitting the natives of over 166 countries, the scheme has helped a healthy growth of almost 40% increase in tourists in 2018 compared to the previous year. In 2018, 2.37 million foreign tourists availed the E-Visa facility,” the report said. It has also helped in improving India’s position in the World Economic Forum Travel and Tourism competitiveness index. “E-Visa initiative has helped India climb up 14 places in the International Openness parameter to 55th position,” the report said.

Swadesh Darshan and PRASHAD scheme have also contributed significantly to India’s tourism and travel growth. Also, Ude Desh ka Aam Nagrik (UDAN) scheme connecting regional airlines has been another government initiative to boost the sector. Incredible India 2.0, Adventure Tourism guidelines, India Tourism mart, Swacch Prayatan mobile application are other government endeavours in travel and tourism direction.

It is not just the foreign tourists that have backed India’s tourism industry. In fact, the domestic tourists have also been a strength of the sector, with them surpassing the domestic inbound tourists in other countries.

What will drive the industry?

Availability of disposable income, the growing love for travel and tourism across age groups, and springing up of new travel destinations will drive the sector growth in the future.

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