India is one of the largest travel and tourism destinations in the world. It is ranked 34th in the Travel & Tourism Analysis Report of 2019. Which is published by the World Economic Forum (WEF).
India’s travel and tourism sector ranked 34th in the world and contributed around 4.7 percent towards GDP (Gross Domestic Product). However, the sector also provides employment to more than 3 lakh people. Consequently, this accounts for 7.3% of the total jobs in 2020.
The total contribution of travel to India’s GDP has fallen down in India by 36.3% over 2019.
Meanwhile, this fall was due to lockdowns and travel restrictions measures implemented by the Government of India. Moreover, In 2020, The sector also recorded a 20% fall in employment.
The Government of India has launched a few schemes and policies. Through various ministries from 2020 to 2021, To increase the local travel and tourism sector.
The Ministry of Tourism had come up with new policies. Moreover, this is to support tourism spots like the development of parks, museums, adventures, and many more.
Furthermore, To support the travel and tourism sector. The Ministry of Road Transport and Highways (MRTH) has introduced a new scheme i.e.
All India Tourist Vehicles Authorization and Permit Rules,(AITVA) 2021.
With the help of this scheme, A tourist vehicle operator can receive an ‘All India Tourist Permit’(AITP). Moreover, this is online within 30 days of submitting his application.
The Finance Minister, Smt. Nirmala Sitharaman, On June 28 2021 announced a relief package to boost up tourism in the country. Some of the key schemes are as follows:
The Ministry of Tourism is likely to administer the National Credit Guarantee Trustee Company Ltd (NCGTC) Scheme.
More than 11,000 registered tourist guides and other stakeholders. They will receive financial support from various nationalized and private banks in the form of loans.
Personal loans will be given to people working in the tourism sector to take care of expenses caused by them personally and restart the services. Under this scheme
The policy covers more than 10,700 regional tourist guides and 904 Travel and Tourism Stakeholders (TTS) recognized by the Ministry of Tourism or State Governments.
The Indian government will give free visas to the first 5 lakh tourists. Moreover, the benefit of free visas will be available only once. Additionally, the offer is applicable till March 31, 2022, or until the issue of 500,000 visas.
The scheme is expected to be a huge gain for tourists visiting India on short-term visits(STV). For a week or a month. The total financial implications of this scheme will cost INR. 1 billion. Once the scheme expires regular fees for applying for visas will be applicable.
The Ministry of Finance (MOF) given the signal to SEIS scrips on June 16, 2021
The Department of Ministry of Finance(MOF) has considered the situation after COVID-19. However, they have agreed to the proposal of the Department of Commerce. This is, however, for the continuation of SEIS for 2019-20 with a financial allocation of INR. 2,061 crore.
The SEIS offers incentives to registered service providers. However, with transferable duty credit scrips as a percentage of their net foreign exchange earnings. These SEIS scrips can be used by service providers to pay several central duties and taxes. SEIS scrips are currently given to tour operators on their forex earnings at a rate of 7 percent
The travel and tourism sector are the main contributors to the Indian Economy. Additionally, the government of India is taking important measures to develop the industry. Consequently, the measures will change the required liquidity to support operations in the short term.
Moreover, it will also support government-approved tourist guides, who have been badly affected by the COVID pandemic. Consequently, it will help the sector to achieve the expected GDP contribution of INR 12.68 trillion by 2028. To know more about this pls download the Fyndhere app for more updates. Find the best products and services near you. Download the Fyndhere app now. Check out our blogs for more information.