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Will The Indian Tourism Industry Boost The Indian Economy In 2022

Are you looking forward to travelling to India next year? If yes then let me tell you something exciting. India has decided to invest Rs. 2400 crore to upgrade its infrastructure around the tourist places in India including railways, power grids, ports, airports, roads and urban development projects. This will increase tourism in the country.

India has emerged as one of the fastest-growing economies in the world. According to the World Bank, India’s GDP increased from $1.6 trillion in 2012 to $2.5 trillion in 2017. Moreover, the country’s economy expanded at a CAGR (compound annual growth rate) of 7% between 2013 and 2018.

India is also ranked as one of the top destinations for international travel. Statistics show that India attracted 21 million foreign tourists in 2017. There is huge potential for this sector. And with the government investing heavily in improving India’s infrastructure, we expect the number of foreign visitors to rise significantly.

Tourism in India has grown rapidly in recent years due to various government initiatives such as the 'Make In India' campaign and the 'Incredible India' campaign. These campaigns aim at promoting Indian culture and heritage globally.

India is currently facing several challenges such as pollution, poverty, unemployment and terrorism. As a result, the number of domestic tourists visiting the country is likely to fall. On top of that, the country has failed to develop a robust infrastructure that attracts international tourists. Moreover, various measures taken by the authorities to curb the activities of terror groups and their affiliates pose a threat to India’s tourism industry.

Despite these challenges, the tourism sector in India is certain to boost the overall economic growth rate over the next five years. The country has huge potential when it comes to attracting international tourists due to its diversity, rich culture and heritage. Therefore, the government should take necessary steps to address the problems faced by the tourism industry in order to increase the number of tourist arrivals.

How the Indian government boosts the tourism sector with initiatives & offers.

100 % FDI is allowed in the tourism sector under the automatic route; and 100% FDI is allowed in tourism construction projects, including the development of hotels, resorts, and recreational facilities. Enabling government and regulatory initiatives like an extra outlay of US$ 316.3 million being earmarked for the Ministry of Tourism in the 2022-23 Union Budget will support tourism-linked businesses in the country.

In Health-wellness tourism be it faith-spiritual-study tourism, cultural tourism or heritage tourism or eco-tourism, youth tourism or business tourism, India is becoming the “most attractive tourist destination in the world”.

In November 2014, the tourism government of India declared e-Visa for citizens of 44 countries in order to make it easier for foreign tourists to visit India. This facility now serves people from 165 countries, up from 44 after 4 years in 2018. Today the e-Visa is now available at 25 airports and five seaports around the country.

Today, the world is getting attracted to India’s yoga, philosophy, spirituality, and culture but when it comes to health tourism. The main goal of health-wellness tourism is to treat sickness and promote wellness.

Research conducted by the World Travel & Tourism Council (WTTC) has revealed the Travel & Tourism sector’s contribution to the Indian economy could surpass pre-pandemic levels this year, with a year-on-year growth of 20.7%. 

The forecast from the WTTC’s latest Economic Impact Report (EIR), stated the sector’s contribution to the nation’s economy could reach around INR 15.9 trillion in 2022, 1% above 2019 levels. Employment levels are also set to boost to almost 35 million Employment levels are also set to grow to almost 35 million Travel & Tourism jobs, with an 8.3% growth this year.

Over the next decade, India’s Travel & Tourism GDP is expected to grow at an average of 7.8% annually, compared to 6.7% of India’s overall economy, to reach almost INR 33.8 trillion (USD 457 billion) – representing 7.2% of the total economy.

The forecast estimated the sector will create over 24 million jobs over the next decade, averaging more than 2.4 million new jobs every year.

The market size of Indian tourism Sectors 

India comes in the most digitally advanced traveller nation in terms of using digital tools being used for planning, booking, and experiencing travelling. India’s rising middle class and increasing disposable income have supported the growth of domestic, economy and outbound tourism.

By 2028, the tourism sector in India and its hospitality are approximate to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.

The travel industry market is projected to reach US$ 125 billion by FY27 from an approximate US$ 75 billion in FY20.

The Indian airline travel market is worth around $20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports. 

By 2028, international tourist arrivals are approximate to reach 30.5 billion and generate revenue of over US$ 59 billion. 

International hotel chains are expanding their presence in the country, and they will account for around 47% share in the tourism and hospitality sector of India by 2020 and 50% by 2022.

Significant Steps Taken by the Government to Promote Tourism

In the last two years, the Ministry of Tourism has undertaken various steps to provide a further boost to the sector such as the launch of new schemes like Swadesh Darshan and PRASAD, revamping of existing schemes such as Hunar Se Rozgar Tak, extending e-Tourist Visas to more countries, developing a Mobile Application for Tourists, came with an Incredible India Tourist Helpline and undertaking various skill development initiatives let’s see some of  the achievements in the Tourism Sector:

1. (PRASAD) scheme:

The National Mission for Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) scheme, was started by the Ministry for the development and beautification of pilgrimage sites and for the growth of domestic tourists boost by spiritual/religious sentiments. The scheme seeks to augment tourism infrastructure at places of pilgrimage to provide better facilities and enhance their experience.

2. MultiLingual Tourist:

The Ministry of Tourism launched the 24×7 Toll-Free MultiLingual Tourist Helpline in 12 languages in 2016. It can be accessed on Toll-Free Number 1800-11-1363 or shortcode 1363. The languages handled by the Tourist Helpline include 10 International languages besides English and Hindi, namely, Arabic, French, German, Italian, Japanese, Korean, Chinese, Portuguese, Russian and Spanish 

3. Adarsh Smarak:

ASI has identified 100 monuments to be developed as Model Monuments. These monuments would be provided with necessary tourist facilities which include Wi-Fi, security, encroachment-free area, and interpretation centres showing short films about the importance of monuments and signboards of Swachh Bharat Abhiyan.

4. ‘Chalo India’:

Prime Minister Narendra Modi urged the Indian diaspora in Denmark to convince five nationals of the European nation to travel to India every year. “Start a Chalo India campaign and suggest the places that these people can visit across the country,” PM Modi stated, that this would enable the people of Denmark to understand India better. An audience of about 1,000 Indians, consisting of students, researchers, professionals and business persons, living in Denmark, greeted prime ministers amidst chanting of slogans like Bharat Mata ki Jai and Vande Mataram.

What is the visa policy of India?

Visitors to India must obtain a visa unless they come from one of the visa-exempt countries. Nationals of certain countries may obtain a visa on arrival or an e-Visa online, while others must obtain a visa from an Indian diplomatic mission.

The latest tourism policy aims to make India a top destination by 2030

Making India one of the top five global destinations by 2030 is the primary aim of the Indian government, which was finalised with certain additions considering the long-term implications of the ongoing pandemic, shared by the ministry of tourism. The policy was shared with ministries and states for feedback.

Rakesh Kumar Verma, additional secretary of, ministry of tourism, stated “ Idea is that post-pandemic, if the tourism industry has to be strengthened, also there should be a long-term vision. There are five important features in the policy, which we will take up as mission aims. The policy has been circulated among the ministries and state governments; after examining feedback from them, the process to inform the policy will be expedited, ”

To align with sustainable development aims, the policy says, the government will set up a National Green Tourism Mission to implement a national configuration, forging alliances with the private industries and also for destination planning, building and management.

The digital tourism mission is aiming to promote digitalisation by developing a unified tourism interface.

“Tourism and hospitality also contribute to employment generation. The Sectoral Skill Mission will make more people employable and check how those citizens are absorbed in the sector,” said Verma.

The National Mission on DMOs focuses on establishing synergy among stakeholders and government agencies and offers institutional support to promote destinations individually.

The Mission on Tourism MSMEs is proposed to enable companies to avail of various advantages being made available by the governments. The mobile application will be developed by tourism and home ministries for the verification of data at the time of immigration and customs clearance.

How to Apply for a Visa?

The visa application process methods differ from country to country. Each country has its own set of rules and regulations when it comes to accepting visa applications. Basic application process following steps to obtain a visa:

Step 1: Select the type of visa you are applying for and your country.

Step 2: Next, check your age eligibility.

Step 3: Fill out the online application form entering all required detailed information.

Step 4: And finally appear for the visa interview along with all required documents at a select embassy.

The Visa application form is an available both online and offline process.  All nations may not accept offline visa applications but in any case, a person has to appear for a visa interview personally, and the visa cost involved in visa application varies from country to country. 

For India; https://indianvisaonline.gov.in/

FAQ's on Indian Tourism Industry:

How is Indian tourism improving the economy?

The tourism industry contributes 7.3% of GDP and accounts for 6.5% of total exports. In addition to this tourism sector contribute 2.7%  of the total employment in the economy. As it is a highly labour-intensive industry it provides employment to skilled, semi-skilled and unskilled persons.

How can tourism boost the economy of India?

One of the biggest advantages of tourism is the ability to make money through foreign exchange earnings. Tourism expenditures generate income for the economy. The money that the country makes from tourism can then be reinvested in the economy of the country. 

Does tourism increase GDP?

With more than one billion tourists travelling to an international destination every year, tourism has become a leading economic sector, contributing 9.8% of global GDP and representing 7% of the world's total exports.

Which country earns the most from tourism?

The United States was the country worldwide with the highest international tourism receipts in 2021. That year, inbound tourism receipts in the U.S. amounted to around 69 billion U.S. dollars.


June 9


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