Stupendous growth in Indian tourism - A boon of economic reforms post 1991

The prominent development that has been witnessed as a result of the reforms of 1991 was that India being the second most populated country in the world has become the focus of attention of all the other economies of the world offering a wide and open market to be tapped. With economic development many new sectors have found space. One of them is tourism and travel. The growing popularity of tourism is the result of various plans and policies of the government. Abolition of licensing system and restrictions on private sector, dispersing industries towards rural and backward areas by giving them incentives and subsidies, liberal provisions for easy entry of foreign direct investments (FDI) in the fields of investment, trade, technology and hotel industry and shift of focus from manufacturing to service industry resulted in growth of tourism sector especially the domestic tourism. There is positive relationship between the growth of tourism and growth of the country. As the country grew in terms of GDP and FDI, tourism also showed positive trends. Tourism has grown as a result of overall policy changes that have led to more disposable income in the hand of Indians. The tax slabs have changed and so has the share of non-food expenditure of urban households. Present paper highlights that the good economic condition of the people of India and economic reforms of post 1991 era has resulted in continuous increase in domestic tourist visit.