Tourism Generates Most Jobs Per Dollar Invested, Says Piyush Goyal
Goyal noted that the world is currently facing a shortage of aircraft post-pandemic, constraining the availability of seats for international travel.
Tourism offers the highest employment potential per dollar invested and represents one of the biggest opportunities for India’s next growth wave, Commerce and Industry Minister Piyush Goyal said on Thursday at ASSOCHAM’s 105th Annual General Meeting.
He also called for a concerted strategy to attract high-spending tourists, he urged greater investments in the tourism and hospitality industry to unlock its full potential.
Goyal noted that the world is currently facing a shortage of aircraft post-pandemic, constraining the availability of seats for international travel. According to Goyal, most flights are running full and any significant bump-up in international tourism will require a major addition in capacity. He also added that India’s international tourism has doubled in the last decade.
To further accelerate growth, the government is identifying the top 50 tourist destinations to develop world-class infrastructure and connectivity. Political, diplomatic and business travel today takes up a large share of flight capacity, Goyal said on Friday. He added that there is a need to ensure that leisure and high-value tourism are adequately supported.
Responding to a query from ASSOCHAM’s Past President and SpiceJet CMD Ajay Singh on India-US trade talks, the minister remarked that negotiations are not conducted in public forums. “Perhaps Ajay is more worried about Boeing’s supply of his planes and engines,” he quipped.
Call for Investment and Sustainability
Highlighting the financing gap in renewable energy, Goyal said the developed world has “fallen short of its commitments,” not providing even a 10 basis point concession in grant finance. Despite that, India remains steadfast in its sustainability goals and is exploring small modular nuclear reactors as part of its clean energy roadmap.
The minister also urged investment funds and banks to channel more capital into MSMEs, which he described as the “backbone of the Indian economy.”
He further added that while banks have burnt their fingers in the past, they must become more liberal in supporting MSMEs, emphasising the need for skill development, fair wages, and quality-conscious manufacturing practices.
He further appealed to large corporations to release payments to MSMEs promptly after delivery of goods or services to help them manage working capital efficiently. “Timely payments will keep the cost of capital low for MSMEs and boost overall competitiveness,” he said.
