Status of Tourism sector
- 100% FDI is allowed through automatic route in tourism construction projects including development of hotels, resorts, and recreational facilities.
- India ranked 6th in terms of Travel & Tourism contribution to GDP in 2022.
- India was ranked 54th out of 117 countries in Global Travel and Tourism Development Index 2021 of World Economic Forum.
Significance of Indian Tourism Sector
- Economic benefits: Employment generation, and increase in foreign exchange earnings.
- Tourism sector projected to create 53 million jobs by 2029.
- Social benefits: Developing understanding and respect for each other’s culture, enhanced quality of life due to improved infrastructure, etc.
- Cultural benefits: Revives cultural diversity, intangible heritage of country etc.
Growth Drivers for Tourism in India
- Ease of travel due to facilities like e-Tourist Visa.
- Rise in disposable income of middle class. This segment is expected to triple by 2026.
- Increased Medical Tourism as India provides affordable treatment, quality healthcare infrastructure and highly-skilled doctors at low cost.
Concerns related to Indian Tourism Sector
- Ecological destruction and disturbance.
- Poor infrastructure, accessibility and safety issues.
- Lack of trained and skilled manpower.
Initiatives taken to promote Tourism Sector
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