Tourism for economic development in North-Western Himalayan states of India

Abstract

India is the fifth largest economy in the world by nominal gross domestic product and the third largest economy in the world in terms of purchasing power parity. Over 50 percent of India's gross domestic product comes from the service sector. Among service sector constituents, the tourism and hospitality industry are the second largest contributor to the service sector growth. The expansion of the travel and tourism sector has a major impact on the economic growth and employment of India. Through its impact on employment, foreign exchange earnings, and funding national infrastructure, tourism helps in a country’s economic growth. The paper aims at highlighting the role of tourism in the economic development of India in general and in the north-western Himalayan state economies in particular. With the help of time series data on the growth of various constituents of economic development, the study finds that tourism plays a significant role in the economic development of the states.