THE ECONOMIC EFFECTS OF TOURISM IN DEVELOPING COUNTRY-A CASE STUDY OF INDIA

This dissertation examines the economic effects of tourism on India, a developing country rich in diverse cultural heritage, natural attractions, and a rapidly growing service sector. This study analyses the role of tourism as an essential force of economic development, focusing on its contribution to gross domestic product (GDP), employment generation, and foreign exchange earnings between 1994 and 2024. Using secondary data sourced from the Ministry of Tourism, the World Travel and Tourism Council (WTTC), and the World Bank, the research analyses trends in domestic tourism, highlighting how increased travel activity has stimulated regional economies, supported small and medium enterprises, and encouraged infrastructure development. The findings indicate that tourism significantly contributes to India’s overall economic growth, particularly through domestic spending, job creation in both formal and informal sectors, and multiplier effects across related industries such as transport, hospitality, and retail. Overall, tourism plays a vital role in India’s economic development by contributing to GDP, generating employment, and earning foreign exchange, while also promoting regional growth and cultural exchange. Keywords: Tourism, Economic Growth, India, Developing Countries, GDP, Employment.