Mains Practice Questions for the Day
- Q. “Tourism can become a powerful instrument of employment generation, regional development and India’s soft power.” Examine the potential of India’s tourism sector, the challenges restricting its growth and the measures required to make it globally competitive.
- Q. The Strait of Hormuz is not merely a maritime chokepoint but a major determinant of India’s energy and macroeconomic security. In this context, examine the implications of the proposed transit fee and suggest measures to reduce India’s vulnerability to disruptions in West Asia.
Q. “Tourism can become a powerful instrument of employment generation, regional development and India’s soft power.” Examine the potential of India’s tourism sector, the challenges restricting its growth and the measures required to make it globally competitive.
(GS Paper III – Indian Economy, Employment, Infrastructure and Sustainable Development)
Introduction:
India possesses diverse natural landscapes, historical monuments, spiritual centres, medical facilities and cultural traditions. International tourist arrivals reached 20.57 million in 2024, compared with 17.91 million in 2019. India aims to attract 100 million international visitors by 2047, while its tourism economy is projected to reach USD 523 billion by 2034.
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Potential of India’s Tourism Sector
- Employment generation: Tourism creates direct jobs in hotels, travel and transport, along with indirect employment in agriculture, handicrafts, construction and retail.
- Inclusive regional growth: Expansion into Tier-II, Tier-III and rural destinations can distribute economic opportunities beyond metropolitan cities.
- Entrepreneurship: It supports homestays, food services, tourist guides, local transport operators and handicraft producers.
- Foreign-exchange earnings: International tourists generate revenue through accommodation, shopping, transport and recreation.
- Infrastructure development: Tourism demand encourages investment in airports, roads, sanitation, digital connectivity and public amenities.
- Soft-power promotion: Heritage, spirituality, cuisine, yoga and cultural diversity strengthen India’s global image.
- Emerging segments: Medical, wellness, spiritual, eco-tourism and MICE tourism offer significant growth opportunities.
Major Challenges
- Regulatory fragmentation: Hospitality projects require numerous licences, while tourism lacks uniform industry status across States.
- Poor last-mile connectivity: Smaller destinations face inadequate roads, sanitation, public transport, signage and digital access.
- High taxation: Premium hotel rooms, tourist transport and aviation-related costs make India less competitive than Southeast Asian destinations.
- Safety concerns: Harassment, overcharging and unregulated services weaken the principle of Atithi Devo Bhava.
- Skill shortage: India lacks adequately trained tourist guides, hotel workers and frontline service personnel.
- Visa barriers: Complex and expensive visa procedures discourage inbound tourism.
- Environmental stress: Overtourism causes overcrowding, water scarcity, waste generation, unplanned construction and disaster risks in fragile destinations.
Measures Required
- Grant uniform industry status to tourism and include hospitality projects in infrastructure classifications.
- Establish single-window clearance and time-bound approval systems.
- Integrate tourism planning with airports, highways, urban development and economic corridors.
- Improve last-mile connectivity, sanitation, signage and wayside amenities.
- Expand e-Visas, visa-on-arrival and long-duration multiple-entry visas.
- Develop destinations according to scientifically assessed carrying capacity.
- Promote renewable energy, water conservation and responsible waste management.
- Standardise tourist police, multilingual assistance centres and grievance mechanisms.
- Strengthen skill development in foreign languages, digital tools and visitor management.
- Accelerate projects under Swadesh Darshan, under which 76 projects worth ₹5,290 crore were sanctioned.
Conclusion:
India must shift from promoting isolated attractions to developing complete, safe and sustainable destinations. Coordinated action by the Union government, States, local bodies, communities and private investors can transform tourism into a driver of decentralised prosperity, cultural diplomacy and Viksit Bharat 2047.
Q. The Strait of Hormuz is not merely a maritime chokepoint but a major determinant of India’s energy and macroeconomic security. In this context, examine the implications of the proposed transit fee and suggest measures to reduce India’s vulnerability to disruptions in West Asia.
(GS Paper III: Energy Security and Indian Economy)
Introduction:
The Strait of Hormuz, located between Iran and Oman, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is among the world’s most important energy chokepoints, carrying nearly one-fifth of global oil and LNG flows before the recent conflict. The proposed 20% US transit fee, although subsequently withdrawn, highlighted India’s vulnerability to geopolitical disruptions in West Asia.
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Implications for India
- Energy-supply risk: Around 40% of India’s crude oil, 60% of LNG and 90% of LPG imports from West Asia pass through Hormuz. India’s overall import dependence exceeds 88% for crude oil.
- Higher import bill: At a crude price of USD 75 per barrel, the proposed levy could have added USD 15, raising the landed cost above USD 90 per barrel.
- Macroeconomic pressure: Every USD 1 rise in crude prices can increase India’s annual oil import bill by up to USD 2 billion. The fee could have added nearly USD 9 billion annually to the oil import bill alone.
- Inflationary impact: Higher fuel costs raise transport, fertiliser, electricity, food-distribution and industrial-production expenses.
- External-sector stress: Costlier energy imports widen the trade deficit and current account deficit, increase demand for dollars and weaken the rupee.
- Fiscal burden: Government absorption of price increases may raise subsidy expenditure or reduce fuel-tax revenues.
- Industrial disruption: LNG shortages may require gas rationing for fertiliser, power and other gas-dependent industries.
- Maritime insecurity: Increased freight and war-risk insurance premiums raise the landed cost of commodities.
Measures to Reduce Vulnerability
- Diversify suppliers: Expand long-term sourcing agreements with Russia, the US, Africa, Latin America and other non-Hormuz suppliers.
- Strengthen strategic reserves: Expand strategic petroleum reserves and improve emergency stock-release mechanisms.
- Accelerate energy transition: Promote renewables, green hydrogen, biofuels, electric mobility and domestic energy production.
- Improve maritime preparedness: Strengthen coordination among the Navy, ports, shipping firms, insurers and energy companies.
- Protect navigation rights: Continue diplomatic advocacy for free, non-discriminatory passage through international waterways.
- Build supply-chain resilience: Diversify transport routes, LNG terminals, storage facilities and import infrastructure.
- Promote regional de-escalation: Engage with Iran, Oman, the US and Gulf countries to maintain uninterrupted commercial navigation.
Conclusion:
The Hormuz fee controversy demonstrated that India’s energy security remains closely linked to geopolitical stability in West Asia. A combination of source diversification, strategic reserves, maritime preparedness and clean-energy transition is necessary to protect economic growth, price stability and strategic autonomy.
