Tourism-Led Growth in India

Syllabus: GS3/Economy

Context

• Tourism has been one of the major driving forces behind India’s economic transformation.

About Tourism Sector in India

• Tourism in India is an important vehicle for economic growth, employment creation, regional development, cultural exchange and international engagement.
• It brings about wide-ranging multiplier effects and assumes a prominent position in India’s developmental journey and Viksit Bharat@2047 Vision.

Current Status

• India’s contribution to the economy through tourism stands at around US$ 231.6 billion and ranks among the world’s leading tourism economies (World Travel and Tourism Council).
• India witnessed 181.25 million International Arrivals and 93.35 million Foreign Tourist Arrivals (2014-2025).

• India witnessed 20.6 million International Arrivals and thus improved its global ranking from 25th position in 2016 to 20th in 2024.

Importance of Tourism

• Economic Growth and Employment: Tourism leads to income generation, foreign exchange earning and employment in various industries such as hospitality, transport, handicrafts and food service industries.
  • Example: Tourism in Goa leads to employment in hotels, taxis and restaurants in addition to providing livelihood to local artisans.
• Regional Development: Tourism has emerged as an important tool of balanced regional development. Government measures are aimed at:
  • Developing the north-east region.
  • Developing rural tourism.
  • Development of Purvodaya vision for Eastern India.
• Culture and Heritage Promotion: Tourism helps in preserving and promoting the cultural traditions, monuments and heritage.
  • Example: Tourism to Khajuraho Temples and Hampi has helped in preserving these structures.
• Building Soft Power: Tourism helps in building soft power and facilitates cultural diplomacy.
  • Example: India’s G20 Presidency showcased India’s heritage and culture before the global audience.
• Community Empowerment and Inclusive Growth: It offers livelihood opportunities to local communities particularly women and rural communities.

• Example: Homestay tourism in Sikkim and Kerala is an example of livelihood generation for locals.
• Environmental Preservation through Sustainable Tourism: Through responsible tourism, it helps in conservation of biodiversity and natural ecosystems.
  • Example: Ecotourism activities at Periyar Tiger Reserve (Kerala) help in conserving the area as well as offering livelihood opportunities to locals.
  • Mamallapuram has become the first UNESCO World Heritage Site in South Asia to be bestowed with Green Destinations Silver Certification.

Key Related Initiatives

• Swadesh Darshan Scheme (2014): It is a Central Sector Scheme which envisages the development of Integrated and Theme Based Tourist Circuits in India.
  • It gives financial assistance to State Governments and Central Authorities for developing world-class tourism infrastructure.
  • Swadesh Darshan 1.0: More than 76 Projects costing in excess of ₹5,000 crore have been sanctioned in 15 different thematic circuits.
  • Swadesh Darshan 2.0 (2022): It aims to develop sustainable and experiential tourism.
• Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) Scheme and Spiritual Tourism: It aims to improve the infrastructure at various pilgrimage centres.
  • Various destinations like Somnath, Srisailam and Govardhan have benefitted through improved safety, sanitation and visitor amenities.
• Special Assistance to States for Capital Investment (SASCI) Scheme: It has been announced in Union Budget 2024-25 with an outlay of ₹3,295.76 crore.
  • This scheme is being implemented by the Ministry of Finance.
  • It provides long-term interest-free 50-year loans to the States to increase their capital investment, promote economic growth and incentives for reforms in various sectors like mining, urban infrastructure and road safety.
• Capacity Building for Service Providers Scheme: More than 4.5 lakh persons have been trained till 2025.
  • Proposed in Union Budget 2026-27 is establishment of National Institute of Hospitality and upskilling of 10,000 tourist guides.
• Technology, Connectivity and Global Competitiveness: India has made significant progress in facilitating travels through expansion of e-Tourist Visa facility, various digital platforms such as NIDHI and NIDHI Plus for tourism players and digital promotion through Incredible India campaign.
  • Improved connectivity through expansion of highways, modernization of railway stations, Vande Bharat trains, UDAN scheme and upgrading of airports and last-mile connectivity.
• Sustainability Initiatives: Development of niche tourism such as bird watching circuits, Himalayan trekking trails and turtle tourism to spread out the tourists’ inflows.
  • Travel for LiFE initiative for encouraging environmentally responsible behavior amongst tourists and industry.
  • Challenge Based Destination Development (CBDD) initiative in ecotourism and spiritual tourism.

Source: PIB