Role of Foreign Direct Investment in India’s Tourism Sector (With References to 2000-2014)

Abstract

Tourism industry is a key driver of economic growth in India. FDI in hotel and tourism industry has led to Economics growth as well as employment generation in India. This paper attempts to examine impact of FDI in tourism industry on the contribution of tourism industry in nation’s GDP and Employment. The data has been collected from the website of department of industrial policy and promotion (DIIP), SIA newsletter and other official’s websites. Regression analysis is applied to assess the impact of FDI in tourism industry on the contribution of tourism industry in nation’s GDP. Result shows that p-value from ANOVA table is 0.025 which is less than 0.05, that means FDI in tourism industry has positive impact and this industry has valuable contribution towards the nation’s GDP.