Title: Impact of tourism industry on the Indian economy: a multidimensional analysis

Authors: Rajender S. Godara; Durafshan Jaihoon Fetrat

Addresses: Department of Economics, Mittal School of Business, Lovely Professional University, Punjab, India ' Mittal School of Business, Lovely Professional University, Punjab, India

Abstract: This paper examined how India's tourism industry emerged as a favourite tourist destination, with an emphasis on creativity and value creation for tourists and the effect and contribution of this industry on India's economic growth, unemployment rate, exchange rate and its share in India's GDP for the period 2000 to 2019. The result of this study showed the positive and substantial relationship between the growth rate of the economy and revenues from tourism. Two economic models were developed. The first model is a multiple regression model that expresses the impact of tourism along with unemployment and exchange rate on GDP. In this model, the relationship between GDP and sector of tourism is significant and positive, which means that tourism raises GDP in a favourable direction. The second model, a simple regression model presented the significant and positive relationship between economic growth and total tourism industry.

Keywords: GDP; economic growth; OLS method; unemployment rate; foreign exchange rate; tourism industry.

DOI: 10.1504/IJEPEE.2022.121352

International Journal of Economic Policy in Emerging Economies, 2022 Vol.15 No.2/3/4, pp.351 - 367

Received: 29 Jun 2020
Accepted: 30 Sep 2020
Published online: 07 Mar 2022 *

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