Tourism is India’s Secret Weapon for Massive Job Creation Says Piyush Goyal

Speaking at the 105th Annual General Meeting of ASSOCHAM on October 16, 2025, Commerce and Industry Minister Piyush Goyal declared tourism as the sector with the highest employment potential per dollar invested, positioning it as a cornerstone for India’s next economic growth wave. Goyal emphasized the need for strategic investments in tourism and hospitality to attract high-spending tourists, unlocking the sector’s immense potential to drive job creation and economic prosperity.

Goyal highlighted global challenges impacting tourism, noting a post-pandemic aircraft shortage that has constrained international travel capacity. “Most flights are running full,” he said, adding that a significant increase in international tourism to India would require a major boost in airline capacity. Despite these constraints, Goyal celebrated India’s progress, pointing out that international tourism has doubled over the past decade, reflecting the country’s growing appeal as a global destination.

To capitalize on this momentum, the Indian government is prioritizing the development of 50 top tourist destinations, focusing on world-class infrastructure and connectivity. Goyal noted that political, diplomatic, and business travel currently dominates flight capacity, underscoring the need to allocate more resources to leisure and high-value tourism. “We must ensure that high-spending tourists have the access and facilities they need,” he urged, calling for private sector collaboration to enhance India’s tourism offerings.

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Beyond tourism, Goyal addressed broader economic priorities, including the critical role of Micro, Small, and Medium Enterprises (MSMEs) as the “backbone of the Indian economy.” He urged banks and investment funds to increase financing for MSMEs, despite past challenges, and emphasized the importance of skill development, fair wages, and quality-focused manufacturing to boost competitiveness. Goyal also called on large corporations to ensure timely payments to MSMEs, stating, “Prompt payments will keep the cost of capital low and enhance overall economic efficiency.”

On sustainability, Goyal expressed disappointment with the developed world’s failure to meet commitments on renewable energy financing, noting the absence of even a “10 basis point concession” in grant finance. Nevertheless, India remains committed to its clean energy goals, with Goyal highlighting the exploration of small modular nuclear reactors as part of the nation’s sustainable energy roadmap. This aligns with India’s broader ambition to balance economic growth with environmental responsibility.

Responding to a question from ASSOCHAM’s Past President and SpiceJet CMD Ajay Singh about India-US trade talks, Goyal quipped, “Perhaps Ajay is more worried about Boeing’s supply of his planes and engines,” sidestepping public discussion on trade negotiations. His remark underscored the complexities of global supply chains, particularly in aviation, which directly impact India’s tourism ambitions.

Goyal’s address painted a vision of a dynamic, tourism-driven Indian economy, poised to create millions of jobs while addressing global challenges. By investing in infrastructure, fostering MSME growth, and advancing sustainable practices, India aims to solidify its position as a global economic powerhouse, with tourism leading the charge as a catalyst for inclusive growth.

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