{"id":52376,"date":"2025-08-27T19:27:43","date_gmt":"2025-08-27T13:57:43","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=52376"},"modified":"2025-09-02T18:28:18","modified_gmt":"2025-09-02T12:58:18","slug":"india-tourism-tariff-proof-sector","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/27-08-2025\/india-tourism-tariff-proof-sector","title":{"rendered":"Tourism in India: The Tariff-proof Sector"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In an era of global economic uncertainty and rising protectionism, like the recent U.S. hike on Indian steel and chemical products, India\u2019s tourism sector stands out as a resilient, inclusive, and tariff-proof engine of growth.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Tourism Sector in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Current Statistics (2023\u201324): <\/strong>India\u2019s tourism sector has rebounded strongly post-pandemic, with both domestic and international travel showing impressive growth:\n<ul class=\"wp-block-list\">\n<li><strong>Foreign Tourist Arrivals (FTAs):<\/strong> 9.52 million (2023), up 47.89% from 2022;<\/li>\n\n\n\n<li><strong>Non-Resident Indian (NRI) Arrivals:<\/strong> 9.38 million (2023), up 18.9% from 2022;<\/li>\n\n\n\n<li><strong>Domestic Tourist Visits (DTVs):<\/strong> Domestic visitor spending \u20b914.64 trillion (2023), up 15% from 2019;<\/li>\n\n\n\n<li><strong>Foreign Exchange Earnings (FEEs):<\/strong> \u20b92.3 lakh crore (2023), up 31.5% from 2022;<\/li>\n\n\n\n<li><strong>GDP Contribution:<\/strong>&nbsp; About <strong>5% to India\u2019s GDP<\/strong> (Global average of 10%); Countries like Spain and the UAE earn around 12% of GDP from tourism<strong>;<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Global Ranking:<\/strong> India ranks <strong>39th<\/strong> in the <strong>Travel &amp; Tourism Development Index (World Economic Forum) <\/strong>2024; Strong performance in:\n<ul class=\"wp-block-list\">\n<li>Price Competitiveness: 18th;<\/li>\n\n\n\n<li>Air Transport Infrastructure: 26th;<\/li>\n\n\n\n<li>Ground &amp; Port Infrastructure: 25th;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"c9b184\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"502\" height=\"310\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Tourism-in-India-The-Tariff-proof-Sector.png\" alt=\"tourism in india: the tariff-proof sector\" class=\"not-transparent wp-image-52377\" style=\"--dominant-color: #c9b184; width:434px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Tourism-in-India-The-Tariff-proof-Sector.png 502w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Tourism-in-India-The-Tariff-proof-Sector-300x185.png 300w\" sizes=\"auto, (max-width: 502px) 100vw, 502px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Tourism\u2019s Transformative Potential<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tourism Vision @2047: <\/strong>100 million foreign tourists by 2047; Focus on adventure, wellness, heritage, and niche tourism segments;<\/li>\n\n\n\n<li>Raising tourism\u2019s <strong>share of GDP from 5% to 10% over the next decade<\/strong> could:\n<ul class=\"wp-block-list\">\n<li>Add <strong>$516 billion annually<\/strong> to the economy;<\/li>\n\n\n\n<li>Create <strong>40 million new jobs;<\/strong><\/li>\n\n\n\n<li>Boost foreign exchange earnings to <strong>$130\u2013140 billion;<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India currently has 1,80,000 branded hotel rooms and 1.5 million unbranded ones. Both categories need to triple to meet demand and keep prices competitive.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Is Tourism Tariff-Proof?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Contrast with Tariff-Vulnerable Sectors:<\/strong> Key sectors like steel, chemicals, telecom equipment, and medical devices are vulnerable to tariffs that can reduce competitiveness, shrink export volumes, and lead to job losses.\n<ul class=\"wp-block-list\">\n<li>However, tourism, by contrast, is insulated from these risks.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>No Border Duties:<\/strong> When a foreign tourist visits India, they spend money on hotels, food, transport, and experiences\u2014all within India.\n<ul class=\"wp-block-list\">\n<li>There are no import\/export tariffs involved, making tourism immune to global trade wars or protectionist policies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Direct Foreign Exchange Earnings:<\/strong> In 2024, India earned <strong>$28 billion (\u20b92.45 lakh crore)<\/strong> in foreign exchange from inbound tourism.\n<ul class=\"wp-block-list\">\n<li>It is not subject to customs duties, unlike goods exports which can be taxed or restricted by other countries.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Economic &amp; Strategic Value:<\/strong> Tourism supports millions of jobs across urban and rural India.\n<ul class=\"wp-block-list\">\n<li>It has one of the highest economic multipliers\u2014every rupee spent by a tourist flows through multiple sectors like transport, crafts, and hospitality.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Related Efforts &amp; Initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Budgetary Provision:<\/strong> \u20b92,541 crore for tourism development (FY 2025\u201326) for infrastructure, skill development, travel facilitation, and heritage conservation.<\/li>\n\n\n\n<li><strong>Swadesh Darshan Scheme:<\/strong> Integrated development of theme-based tourist circuits, like Buddhist Circuit, Coastal Circuit, Desert Circuit.\n<ul class=\"wp-block-list\">\n<li>Financial assistance to states\/UTs for infrastructure and amenities.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.nextias.com\/blog\/prashad-scheme\/\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/blog\/prashad-scheme\/\">Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) Scheme<\/a>: <\/strong>Development of pilgrimage sites and spiritual destinations.\n<ul class=\"wp-block-list\">\n<li>To enhance religious tourism and visitor experience.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>E-Visa Expansion:<\/strong> It is available under 7 sub-categories including e-Tourist Visa; e-Medical Visa; and e-Ayush Visa.\n<ul class=\"wp-block-list\">\n<li>It has 5-year multiple entry, 1-year multiple entry, 1-month double entry options.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Incredible India Tourist Facilitator Certification:<\/strong> Online training platform to create a pool of certified tourist guides.<\/li>\n\n\n\n<li><strong>Capacity Building for Service Providers (CBSP):<\/strong> Training programs for hospitality and tourism workers. It aims to improve service standards and employability.<\/li>\n\n\n\n<li><strong>MUDRA Loans for Homestays:<\/strong> Financial support for individuals to start or upgrade homestay businesses.<\/li>\n\n\n\n<li><strong>Performance-Linked Incentives to States:<\/strong> Rewards for effective destination management, cleanliness, and marketing.<\/li>\n\n\n\n<li><strong>Heal in India Initiative:<\/strong> It promotes India as a global medical tourism hub. It includes visa facilitation, private sector collaboration, and upgraded healthcare infrastructure.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Strategic Pathways for Growth<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Develop World-Class Destinations: <\/strong>The Union Budget\u2019s plan <strong>to develop 50 destinations in partnership with states<\/strong> is a strong start.\n<ul class=\"wp-block-list\">\n<li>Each state needs at least one world-class hub combining infrastructure, sustainability, and branding.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Streamline Travel Facilitation: <\/strong>Simplified e-visas, shorter immigration queues, and seamless arrivals are essential.\n<ul class=\"wp-block-list\">\n<li>With Indian airlines expanding by 1,000 aircraft, connectivity can be leveraged to attract more visitors.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Leverage Digital Storytelling: <\/strong>The future lies in content-led promotion. By partnering with influencers and global platforms, India can amplify its presence through AI-enabled curation and digital campaigns.<\/li>\n\n\n\n<li><strong>Unlock Private Investment: <\/strong>Including tourism infrastructure in the Harmonised Master List can catalyse PPP investments in hotels, ropeways, wayside amenities, and convention centres.<\/li>\n\n\n\n<li><strong>Strengthen Domestic Tourism: <\/strong>The <strong>Dekho Apna Desh<\/strong> campaign can be scaled into a national movement.\n<ul class=\"wp-block-list\">\n<li>With 86% of revenues already from domestic tourism, making interstate travel more affordable will enhance cultural exchange and economic redistribution.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> Discuss how tourism in India functions as a tariff-proof sector and evaluate its potential to drive inclusive economic growth in the face of global trade uncertainties.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/tourism-us-trump-tariff-proof-sector-10211329\/\" rel=\"nofollow noopener\" target=\"_blank\">Source: IE<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/08\/UPSC-Editorial-Analysis-27-August-2025.PDF.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In an era of global economic uncertainty and rising protectionism, like the recent U.S. hike on Indian steel and chemical products, India\u2019s tourism sector stands out as a resilient, inclusive, and tariff-proof engine of growth.<\/p>\n","protected":false},"author":15,"featured_media":52432,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-52376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/india-tourism-tariff-proof-sector.png","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/52376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=52376"}],"version-history":[{"count":5,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/52376\/revisions"}],"predecessor-version":[{"id":52852,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/52376\/revisions\/52852"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/52432"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=52376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=52376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=52376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}