Assessing the Impact of Hospitality Economics on the Indian Economy: A Sectoral Study

Abstract

India’s hospitality sector has become the pillar of India’s economic motor, generating employment, infrastructural development, and foreign exchange. As a part of the broader services economy, hospitality includes hotels, restaurants, travel agencies, and event planning—all of which contribute to a significant percentage of India’s GDP and employment estimates. This paper assesses the economic impact of the sector by examining its direct and indirect contribution to the Indian economic system. Taking a qualitative and analytical approach, the study delves into the influence of the sector on key macroeconomic indicators such as GDP, employment, tourism, and regional development. It further unravels the way the hospitality industry adds value to allied industries like transportation, agriculture, and retail, thereby marking its embedded nature within India’s economic environment. Evidence is guided by facts borrowed from expert interviews, government reports, and literature review.

DOI - https://doi.org/10.65525/SVUP.9788199651524.2026.106-116