Impact of tourism and hospitality industry in growth of Indian economy

Abstract

It is a known fact that as the economy grows the demand for services increases. “The service sector is currently the fastest growing sector of the Indian economy”. Total contribution by travel and tourism sector to India’s GDP is expected to increase from Rs 15.24 trillion (US$ 234.03 billion) in 2017 to Rs 32.05 trillion (US$ 492.21 billion) in 2028. Hospitality and tourism is an important contributor to India’s service portfolio. The hospitality industry in India is changing at a very fast pace. Innovation is the buzzword in the industry. The Indian hospitality industry is witnessing a major shift wherein apart from traditional business or leisure travel, India’s hospitality sector has been witnessing interest from various segments like meetings, incentives, conferences and exhibitions (MICE), eco tourism, wellness tourism, spiritual and pilgrimage tourism. The Indian government has taken up various reforms to bring the pace in the industry growth with liberalization in the regulatory framework, investment friendly schemes, extensive support for creating a world class infrastructure, initiating better air and land connectivity, incentivizing regional set-up in tier III and IV cities, exploring the untapped geographical resources which has led to a comprehensive growth of the Indian hospitality industry. This paper focuses on impact of the hospitality industry in the development and growth of Indian economy which have transformed the scenario of the industry altogether. It also attempts to study the trends on the hospitality industry and the Indian economy at large.