Impact of Tourism Sector on Indian Economy

The Tourism sector has become an important instrument of economic development and the main source of foreign exchange earnings. The main objective of this paper is to examine the influence of tourism sector on Indian economy. The study is based on secondary sources of data obtained from Bureau of Immigration(Government of India), India Tourism Statistics (2017), articles, Newspaper, Journals and magazine. The study reveals that tourism contributes near about 6.7 per cent of the total Gross Domestic Product (GDP) of the country and also provides employment to approximately 3.66 crores population in 2014 which constituted 8.7 per cent of total employment of India. The study also showed India received 154146crores foreign exchange in 2016 from the tourism Industry. In 2016, the majority of the foreign tourist came from Bangladesh, United States and United Kingdom. The investigation also reveals that Tamilnadu followed by Uttar Pradesh is the most attractive state for the Tourist in 2016. The study suggested that government should provide a better transport and communication facilities, well maintained and decorated hotels near the tourist spot at a reasonable price, proper security to the tourist, organised regularly international sports event and reduce the amount of taxes to attract alarge number of foreign tourist to visit in India.