What Percent of GDP Is Tourism in India?
India is a diverse and culturally rich country that attracts millions of tourists from all over the world. The tourism industry plays a significant role in the country’s economy, contributing to its Gross Domestic Product (GDP). In this article, we will explore the percentage of GDP that comes from tourism in India.
The Importance of Tourism in India
Tourism is one of the fastest-growing sectors in India, contributing significantly to its economic growth. It is a major source of employment and foreign exchange earnings for the country. The industry has been growing at an average annual rate of 7.5% over the last decade, and it is estimated to continue to grow at a steady pace.
The Indian government has been actively promoting tourism by developing infrastructure, creating new tourist destinations, and launching campaigns to attract more visitors. The “Incredible India” campaign launched by the government has been successful in attracting tourists from all over the world.
The Percentage of GDP That Comes From Tourism
According to the World Travel and Tourism Council (WTTC), the total contribution of tourism to India’s GDP was 9.6% in 2019. This includes both direct contribution (i.e., money spent by tourists on accommodation, transportation, food, etc.) and indirect contribution (i., money spent by businesses that supply goods and services to tourists).
In terms of direct contribution alone, tourism contributed 3.5% to India’s GDP in 2019. This is expected to increase by 6.7% per annum over the next ten years, according to WTTC.
The Impact of COVID-19 on Tourism
The COVID-19 pandemic has had a severe impact on the tourism industry in India, as it has in many other countries. International travel has been restricted, and domestic travel has also been affected due to lockdowns and social distancing measures.
According to the Confederation of Indian Industry (CII), the tourism industry in India is expected to lose around 4.5 trillion rupees ($61 billion) due to the pandemic. It is estimated that around 38 million jobs are at risk in the sector.
Conclusion
The tourism industry is an essential part of India’s economy, contributing significantly to its GDP and providing employment opportunities for millions of people. While the COVID-19 pandemic has had a severe impact on the industry, it is expected to recover gradually as travel restrictions are lifted and people start traveling again.
- Key Takeaways:
- Tourism contributes 9.6% of India’s GDP (direct and indirect contribution) according to WTTC data from 2019.
- The direct contribution of tourism alone was 3.5% of India’s GDP in 2019.
- The COVID-19 pandemic has severely impacted the tourism industry in India, leading to significant losses and job cuts.