The Modi government’s recent push to ease visa rules augurs well for the economy, if official data are any indication. From 1991 to 2013, India’s foreign exchange earnings from tourism grew 891 per cent from $1,861 million to $18,445 million, Tourism Ministry figures show.
During the period, tourist arrivals grew 311 per cent (from 1.7 million to 7 million) and departures 755 per cent (from 1.9 million to 16.6 million), while the GDP increased by more than 15 times from Rs. 5,79,009 crore to Rs. 9,92,1106 crore. The Ministry has not released the data for 2014.
Since the Modi government took charge, India has eased visa norms for 43 countries, and plans are afoot to expand the list soon. In effect, tourists from these countries will be able to apply for visas online, receive the go-ahead within four days and collect their visas on arrival in India.
Under the old system, citizens from only 12 countries had this privilege.
India follows the expected path — with foreign exchange earnings from tourism and tourist arrivals and departures more or less moving in tandem with the GDP. But this is not always the case. Some countries may see GDP growth but low tourist movement and others, high tourist traffic despite a recessionary economy.
Several reports show that India has a long way to go before it enters the big league of tourist destinations. The country came 65th out of 140 countries in a World Economic Forum ranking on travel and tourism competitiveness conducted in 2013. Easing visa norms is just the first step.
