India needs to drive the travel and tourism sector as it has a huge multiplier effect with respect to job creation, said Amitabh Kant, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.
As manufacturing is becoming less labour intensive, India needs to focus on sectors such as travel.
He was speaking at the Hotel Investment Conference South Asia 2015 here on Tuesday.
“The sector currently accounts for 8.7 per cent jobs in India and this number can easily touch 10 per cent,” he said.
Kant added that tourism currently contributes 6.8 per cent to the GDP and could touch the 9 per cent mark easily.
“Indian politicians need to realise that this sector is a job creator and not an elite activity,” he said.
The Government needs to bring in a rational taxation regime for the hospitality sector and hotels must push this agenda with the States, Kant added.