Tourism and economic growth: evidence for India

Tourism is one of the major social and economic phenomena of modern times. It is being considered as an efficient tool for promoting economic growth of a nation. The tourism industry in India has been witnessing rapid growth and development during the last few decades. It possesses a huge potential which can add pace to the overall economic and socio-cultural development of the country. This paper is a sincere attempt to examine the dynamics of the relationship between tourism sector expansion and economic growth in India. The study uses time series data to prove the relationship between tourism and economic growth. Simple statistical techniques have been used to establish this relationship. Therefore, with regard to policy implications it can be argued that economic policies should be directed towards improving the Indian tourism industry to produce a higher economic growth rate.