Rise of Indian Tourism Sector

Syllabus :GS 3/Economy

In News

• The Centre has approved ₹3,295 crore in interest-free loans for tourism infrastructure development across states.

About 

• The Union Finance Ministry cleared the loans, which are being disbursed under the Special Assistance to States for Capital Investment (SASCI) scheme.
  • The loans are long-term, interest-free, and will be repaid over 50 years.
  • The aim is to develop iconic tourist centers, enhance global branding, and promote sustainable tourism that boosts local economies and creates jobs.
• States are encouraged to develop lesser-known tourist destinations like Bateshwar (Uttar Pradesh), Ponda (Goa), Gandikota (Andhra Pradesh), and Porbandar (Gujarat).
  • 40 new tourism projects have been identified across 23 States.

India’s Tourism Sector Growth:

• India, one of the oldest civilisations in the world, is a multicultural melting pot. 
• India’s tourism industry is becoming a global favorite due to its rich heritage, cultural diversity, and beautiful destinations, contributing significantly to economic growth and job creation.
  • In 2022-23, 76.17 million direct and indirect jobs were created in the tourism sector, compared to 70.04 million in 2021-22.
• Government Budget for Tourism: For FY25, the government has allocated ₹2,479 crore to further develop the tourism sector.
• Global Ranking: India ranks 39th among 119 countries in the Travel and Tourism Development Index 2024 (TTDI), with improvements in:
  • Prioritization of Travel & Tourism,Safety & Security,Health & Hygiene.
• Foreign Tourist Arrivals (FTAs): In 2023, India recorded 9.24 million FTAs, a 43.5% growth compared to 2022 (6.44 million).
  • Foreign Exchange Earnings (FEEs) from FTAs grew by 65%, reaching ₹2.3 lakh crore in 2023.
  • Measures to Increase FTAs: Promotion of adventure and niche tourism.
    • Easier access to e-visas.
    • Launch of a 24×7 multilingual helpline for tourists.
    • Launch of Paryatan Didi and Paryatan Mitra for a better tourist experience.
  • In 2023, 2,509.63 million Domestic Tourist Visits (DTVs) were recorded, up from 1,731.01 million in 2022.

Government’s Initiatives 

• The government is prioritizing adventure tourism and sustainable tourism along with technological integration to increase sector growth.
• Infrastructure Investment: India has invested around ₹7,000 crore (approximately $1 billion) in building tourism infrastructure to improve the tourist experience.
• Initiatives like Dekho Apna Desh, PRASHAD, Vibrant Village Programme, SWADESH 2.0, and Udaan aim to promote domestic tourism.

Challenges 

• Infrastructure Deficiencies: Poor connectivity in remote areas, limited quality accommodation in rural destinations, and inadequate basic amenities.
• Safety and Security Concerns: Issues such as crime, health risks from disease outbreaks, and political instability in certain regions can deter tourists.
• Environmental Impact: Pollution in urban areas, overtourism leading to the degradation of popular destinations, and potential harm to wildlife and ecosystems due to tourism in sensitive areas.
• Cultural Sensitivities: Tourists may unintentionally disrespect local customs, and increased tourism can threaten the preservation of cultural and heritage sites.
• Marketing and Promotion: Inadequate awareness and ineffective branding campaigns, like “Incredible India,” fail to highlight the country’s diverse attractions.
• Skill Development: There is a lack of trained professionals in the tourism industry and language barriers for foreign tourists.

Conclusion and Way Forward

• India’s tourism industry has shown remarkable growth due to government initiatives, infrastructure development, and global branding. 
• The government sees tourism as a driver of social inclusion, employment, and economic progress, working towards making India a developed country by 2047.
• Continued focus on sustainable tourism and technological integration is expected to further boost the sector.

Source: TH