How Immigrants Are Impacting the Economy in India

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Economically, immigration to any country is a good thing, as it gives such country exposure and open opportunities. India is not excused from this same reality. In fact, we can allow a great chunk of the recent boost in the economy to the more recent upscale of immigration in the country. Trips to India, mainly boosted by tourism, have become a secondary relevance in the Indian economy. It contributes to a large portion of the GDP and continuously helps to expand various marketplaces. In recent times, the Indian government has taken some actions that made immigration into the country to be smoother than it has ever been.

The immigration rate in India

Before we can really measure the impact of immigration in the country, it is important to take a brief look at the rate of immigration, in the country, tourism especially. India has the 7 largest tourism economy in the world, an amazing fact (proven by figures, of course), you would say. 2017 reported about 10 million immigrants (tourists, mostly), compared to 2016 which had about 8.9 million visitors. These positive figures cause a positive impact on the economy in the following ways.

The effect of tourism on India’s economy

1. Development:

India welcomes troops of tourists into the country, day after day. This has caused the government of different states and the Federation of India to implement major development processes that would improve the state of the country. In fact, many rural areas with ancient Hindu history and cultures are being developed to make them more compelling for tourists to visit. Visitations from tourists would have them interact with the Indian market for whatever purchases or commuting they do. When immigrants and tourists come, their expenses go a big deal into the pocket of Indian marketers and retailers who eventually circulate the money in the country’s monetary system.

2. Improved Gross Domestic Product:

When considering the impact of the foreign visitors on both the Indian local and affiliate international markets, the value is much. These visitors have helped businesses to scale up, have more reach, inspired different cities to iconize their architectural edifices and ruins; all these places are means to generate revenues and, at large, increase the gross domestic product. And gradually, more than ever before, India is climbing its way out of the economic shipwreck.


3. Increased ROI:

The rate of people coming into the country are on the increase, and this has opened the country to private and partnership investors who have helped to contribute to the development of the country or establish paramount businesses that are contributing their immense market values to the economy of the nation. These collaborations and investments have encouraged tourists to provide market-worthy values for these businesses and amenities. With more people visiting the country, then there are valuable ROIs for the country.

4. Expanded marketplace:

With the increase of inbound tourists to the country, there has been an expansion of the Indian marketplace and labour force. One would have expected such increase, seeing that in the space of a year, there was a massive 198.7% increase in the number of immigrants. There are lots of works to do, various marketplaces are expanding to accommodate and service the large number of tourists. Hence, right from the immigration offices, to tour guides, to hospitality management staff, etc., the employment rates are increasing; thereby improving and stabilising the country’s economy.


5. Revenue generations:

The greatest summary of all the various ways that foreign visitors and guests is that, they have helped the country to generate revenues from various industry and market, cumulatively contributing to economy’s scaling. Taxes generated from immigrants, either directly or indirectly help to maintain the government’s fiscal balance. They contribute immensely to the governmental revenue funds that were not necessarily included in the budget. The greater the immigrants welcomed into the country of India, the better the performance of the fiscal balance through massive revenue generation. These revenues cover for whatever budget deficit that has been planned; and if it is able to maintain the balance or that there is a surplus, then the value of the Indian currency rises.


It is, of course, obvious and rather certain that a decline in the number immigrants into India would also influence the country’s economy; only that this time, it would be negatively.



Disclaimer: This content does not necessarily represent the views of IWB.


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