Sustainable Tourism and Economic Growth in India — An Analysis

Abstract

Spirituality has been a strong motivation for travel and is the case even now. People from developed and affluent countries are moving from their own countries to other destinations, seeking solitude, natural and holistic remedies, including health purposes, and eco-friendly experiences. Tourism is evolving into a more defined activity while developing various niche areas. Tourism activities are considered to be one of the significant sources of economic growth. It is a mechanism for generating employment and income in both formal and informal sectors.

Indian tourism provides employment opportunities, growth of GDP, promotion of healthcare and earning foreign exchange. India’s domestic tourism industry has significantly grown, contributing $151.1 billion to the country’s GDP in 2021. Domestic tourist visits have increased nearly ninefold since 2000, reaching 1.82 billion in 2018. International tourism generated over 27.31 billion U.S. dollars in foreign exchange in 2017. The study suggests that sustainable tourism should promote favourable tourism policies to push up economic growth, and in turn, economic growth will positively contribute to international tourism.