Factors Driving Growth in India's Tourism Industry

This economics assignment explores the factors driving the growth of India's tourism industry, including the role of infrastructure and technology. The article highlights the government's commitment to the sector and the importance of customer-oriented travel solutions. References are provided for further reading.

Economics Assignment 1
Economics Assignment
Nam
Institution

Economics Assignment 2
Economics Assignment
India’s tourism industry has sprung global economic headwinds to remain on a steady
growth trajectory for the last two decades now. After the historic headwinds to 40th place in
WEF Travel and Tourism Competitiveness Index, India crossed the ten million mark in FTAs for
the first time in 2017 (Ferus-Comelo, 2014). The 2018 budget is evidence of the government’s
assurance in the sector, accentuated by the emphasis on improving connectivity, strengthening
infrastructure, and rural developments.
Words are few to explain the factors behind the tremendous growth of the Indian Tourism
market. However, according to Chinai and Goswami (2007), infrastructure is a core driver of
Indian Tourism. Infrastructure sector which includes bridges, power dams, airports, railway
lines, roads and development of urban infrastructure is highly responsible for driving India’s
overall growth and enjoys extreme focus from Government for initiating strategies. It has been
proven by so many illustrations on how infrastructure has increased efficiency by adding speed
to the Indian Tourism Industry. For instance, the development of air travel as a means of
shipping tourists to different sites across India is a vital contribution to the tourism and travel
industry in India. The substantial development of low-cost carriers is another means of actual
applications to the tourism and travel industry in India.
Technology has also played a key role in achieving growth of Indian Tourism Industry by
garnering economic means for tourist to travel. In present India, tourists are surrounded by
mobile devices, the internet, tour operators, transport suppliers, travel agencies, guides and
hoteliers, all ready to offer services to the tourist (Munjal, 2013). This has been feasible because
of the development in e-commerce. In the current Indian nation, tourists can now observe and
select different tourism and travel preferences by surfing the internet through their cell phones or

Economics Assignment 3
internet gadgets (Bethapudi, 2013). This emergence of new and high tech internet devices in
India has again stirred a revolution in the tourism industry in the country as the tourist can now
easily access internet and book services online thus increasing efficiency and growth of the
industry in the country.
In conclusion, the development of infrastructure aided by the advent of technologies has
speeded up the development and growth of Indian tourism industry. India can be seen to be
resorting to offering customer-oriented travel solutions, which is a departure from traditional
tourism strategies and is aiming to provide a one-stop solution for all travel associated services
through information technology. At the same time, India prime focus in the tourism industry has
remained to be to continue offering improved excellent customer service to her tourists. For all
these, India is always seeking to embrace the best and updated information technology.

Economics Assignment 4
Reference List
Ferus-Comelo, A., 2014. CSR as corporate self-reporting in India's tourism industry. Social
Responsibility Journal, 10(1), pp.53-67.
Bethapudi, A., 2013. The role of ICT in tourism industry. Journal of Applied Economics and
Business, 1(4), pp.67-79.
Munjal, P., 2013. Measuring the Economic Impact of the Tourism Industry in India Using the
Tourism Satellite Account and Input—Output Analysis. Tourism Economics, 19(6), pp.1345-
1359.
Chinai, R. and Goswami, R., 2007. Medical visas mark growth of Indian medical tourism.
Bulletin of the World Health Organization, 85, pp.164-165.