India's Tourism Sector Contributes 5% to GDP in 2022-23 with Growth in Foreign Arrivals
Team Finance Saathi
26/Nov/2024

What's covered under the Article:
- India's tourism sector's contribution to GDP and its recovery after the pandemic.
- Increase in foreign tourist arrivals, especially for leisure and medical tourism.
- The introduction of e-medical visas to boost medical tourism in India.
India's tourism sector has shown a promising recovery, contributing 5% to the country's GDP in the fiscal year 2022-23, according to a recent statement made by Union Minister of Culture and Tourism, Mr. Gajendra Singh Shekhawat. This marks a steady performance in comparison to the 5.01% contribution recorded in the pre-pandemic fiscal year 2018-19, reflecting the sector's resilience despite global challenges. The sector did face a sharp decline during the pandemic, dropping to 1.50% in 2020-21, but has steadily rebounded to 1.75% in 2021-22 and now to 5% in 2022-23.
Key Developments in India's Tourism Sector
One of the major highlights of India’s tourism growth is the notable rise in foreign tourist arrivals. In 2023, India welcomed a total of 9.52 million foreign tourists. Among these visitors, 46.2% traveled for leisure and recreation, indicating a strong interest in exploring India’s diverse cultural, historical, and natural offerings. Additionally, the Indian diaspora represented 26.9% of the total foreign arrivals, further showcasing the country's global appeal.
In a bid to further boost India's tourism, the government has introduced new initiatives aimed at enhancing medical tourism. The introduction of the e-medical visa and e-medical attendant visa options is set to make it easier for foreign nationals from 167 countries to travel to India for medical treatment. This move aligns with India’s growing reputation as a hub for affordable and world-class medical services, particularly in areas like cardiology, oncology, orthopedics, and cosmetic surgery. The e-medical visa simplifies the process for patients seeking medical care in India, allowing them to bypass traditional visa procedures.
The Current active IPO is Rajputana Biodiesel, Rajesh Power Services, C2C Advanced System, Enviro Infra Engineers and Lomosaic India.
Impact of Rising Airfares on Domestic Tourism
While India’s tourism sector has made significant strides, rising airfares have been a topic of concern, especially in the context of domestic tourism. When questioned about the impact of increasing airfares on tourism, Mr. Gajendra Singh Shekhawat clarified that the Ministry of Tourism has not conducted any recent studies to evaluate the potential impact of airfares on domestic tourism. While rising airfares could affect domestic travel, particularly for budget-conscious tourists, the government’s focus on making travel more accessible through various initiatives, such as tourism packages and online platforms, continues to support growth in the sector.
Looking Ahead: Challenges and Opportunities for Indian Tourism
The government remains optimistic about the future of India’s tourism sector and its potential to drive economic growth. The introduction of the e-medical visa is expected to attract more international patients seeking medical treatment, further contributing to India’s economy. With a growing focus on sustainable tourism and infrastructure development, India is poised to capitalize on its rich cultural heritage, diverse landscapes, and medical expertise to attract more foreign visitors.
In conclusion, India’s tourism sector is on a robust recovery path, with significant contributions to the GDP and a rise in foreign tourist arrivals. The e-medical visa initiative is set to position India as a leading global destination for medical tourism, while ongoing efforts to improve accessibility and infrastructure are likely to sustain long-term growth.
The Upcoming IPOs in this week and coming weeks are Apex Ecotech, Abha Power and Steel, Agarwal Toughened, Ganesh Infraworld, Suraksha Diagnostic, Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.
For those interested in exploring financial independence, investment opportunities, and learning about current affairs, platforms like Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today provide excellent resources for growing your knowledge and wealth. Additionally, staying informed through Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News can keep you updated on the latest trends in the world of finance.
Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for regular Share Market, News & IPO Updates.
Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.