Impact of tourism industry on the Indian economy: a multidimensional analysis

Abstract

This paper examined how India's tourism industry emerged as a favourite tourist destination, with an emphasis on creativity and value creation for tourists and the effect and contribution of this industry on India's economic growth, unemployment rate, exchange rate and its share in India's GDP for the period 2000 to 2019. The result of this study showed the positive and substantial relationship between the growth rate of the economy and revenues from tourism. Two economic models were developed. The first model is a multiple regression model that expresses the impact of tourism along with unemployment and exchange rate on GDP. In this model, the relationship between GDP and sector of tourism is significant and positive, which means that tourism raises GDP in a favourable direction. The second model, a simple regression model presented the significant and positive relationship between economic growth and total tourism industry.