Analysing The Tourism Sector In India Under NDA Government And The Way Forward


Tourism serves as a pivotal catalyst for economic growth in nations, acting as a rapidly advancing sector that significantly influences trade, job creation, investment, infrastructure development, and societal inclusion. This research paper meticulously explores the ever-evolving landscape of India’s tourism sector, offering an in-depth analysis of its present status and scrutinizing the initiatives undertaken by the NDA (Non democratic alliance) Government since 2014. Emphasizing key policies such as the Draft National Tourism Policy 2022, Swadesh Darshan 2.0 Scheme, Adopt A Heritage, and Prashad Scheme, among others, the study underscores the Government’s concerted efforts to foster the sector’s growth. In shedding light on the challenges within India’s tourism sector, the research employs case studies of states with significant contributions, namely Karnataka, Rajasthan, and Goa. Furthermore, the paper conducts a comparative study between India, France, and ASEAN (Association of Southeast Asian Nations) countries, unveiling the global leadership of France and ASEAN countries in promoting tourism. The analysis reveals the developmental stage of India’s tourism industry, identifying both strengths and weaknesses. This comparative insight provides a systematic guide for India’s tourism sector to enhance its global standing. Conclusively, the research paper proposes prospective solutions for the future advancement of India’s tourism industry. Positioned as a valuable resource, this comprehensive examination caters to policymakers, researchers, and stakeholders keen on nurturing sustainable growth and enhancing global competitiveness within India’s dynamic tourism sector.


The Indian tourism industry started developing in the 19th century  after the country’s independence. The Sir John Sargent Committee was established in 1945 to promote tourism in India. Following that, India underwent systematic growth in the tourism industry. The second (1956-1961) and third (1961-1966)  five-year plans have evolved the tourism planning methodology. In 1966, ITDC (Indian Tourism Development Corporation) was founded, playing a key role in the industry’s growth.  The sixth (1980-1985) five-year plan strongly emphasises using tourism as a tool for economic growth, social integration, and upholding peace. After the 1980s, the tourist sector proliferated as a source of jobs, revenue, foreign exchange, and leisure activity. 

The first Indian tourism policy, released in 1982, aimed to promote sustainable tourism for social and economic inclusion. It sought to enhance India’s global image. The policy focused on six main categories: swagat (welcome), suchana (information), suvidha (facilitation), suraksha (safety), sahyog (cooperation), and Samrachana (infrastructure development). In 1986, the National Committee on Tourism was set up by the Indian Planning Commission to plan for the tourism industry’s future. The Government announced tax exemptions on foreign exchange profits. In 1987, the Tourism Development Finance Corporation was established with a capital fund of Rs. 100 crores for commercial financing. The National Action plan for Tourism was announced in 1992, emphasizing greater private sector involvement. The Eighth Five Year Plan (1992-1997) emphasized this as a way to boost tourism planning in India. 

This paper focuses on the growth of the tourism sector during the NDA Government’s tenure from 2014 to the present. A major breakdown came up in 2020 when the coronavirus pandemic globally hit the travel and tourism industry in the worst possible way including aviation, hotels, transportation, and restaurants. Tourist arrivals started declining in February 2020, leading to widespread job losses. Approximately 21.5 million people in the tourism sector lost their jobs due to the pandemic. Many small, unorganized travel companies were particularly hard-hit, with workers continuing to face challenges in supporting themselves.

Current Status of India’s Tourism Sector 

The India’s tourism sector provides USD 16.61 billion FDI (Foreign Direct Investment) inflows in the hotel & tourism space from April 2000 – Sep 2022. In 2022, the contribution of the travel and tourism industry to India’s economy stood at USD 15.7 trillion. Additionally, India ranks 6th according to WTTC (World Travel & Tourism Council) in terms of travel and tourism total contribution to GDP in 2022. The tourism market is expected to grow at 18.08% CAGR (Compounding Annual Growth Rate) from 2022-2026. By 2028, India’s tourism and hospitality industry is projected to generate USD 50.9 billion in Visitor Exports, a significant increase from USD 28.9 billion in 2018. Additionally, Foreign Tourist Arrivals (FTAs) are anticipated to reach 30.5 million by 2028. Tourism Sector is expected to contribute USD 512 billion to India’s GDP by 2028 and provide direct employment of 53 million jobs by 2029 . The tourism sector is projected to contribute USD 250 billion to the country’s GDP by 2030, generating an employment for 137 million individuals, and USD 56 billion in foreign exchange earnings (FEE).  

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Author: Shreyansh Goel