Nishant Aggarwal

AP Macroeconomics
Ms. S. Chander
September 26, 2014
News Analysis
Visa on Arrival facility on the anvil for US tourists
Today, our world has come a long way. We have moved on from the times when our
empire, our country, our nation was all that used to matter and entered an era in which
we are slowly starting to look at each other as fellow global citizens. National prejudices have
started to blur and exchange of ideas, goods and resources is happening faster than a blink of
an eye. Through trade agreements and treaties, trade barriers are almost gone and with the
internet, barriers to sharing of ideas and collaboration are a thing of the past. In fact, for
todays teens it is hard to imagine that once it was impossible to know what was happening in
a distant country like Bulgaria or Romania unless you were a high ranking government
official or a rich businessman. But, though we may brag about the freedom and
interconnectivity in the present time and the long way we have come, we must also recognize
that some surmountable barriers still exist. One such barrier is the inability of a person to
travel around the world freely. And though we may like to call our world a global village,
only a handful of us (read diplomats and heads of states) have the ability to travel to a foreign
country without having to go through a tiresome visa process.
Inter-national engagement is hindered by the lack of freedom to travel to a country
where we want. Borders are intact and citizens are forced to stay within their countries.
Travelling to a foreign nation usually takes us into a hassled process with hundreds of
documentation, identification verification, interviews, etc. And this last big obstacle of not
being able to travel internationally has been a great barrier in our way to truly becoming a
global village.

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However as per the news report at hand, the Indian government is planning to extend Tourist
Visa on Arrival to American citizens. And though this may sound like a vicious political
move, we have to understand that this move will have huge positive economic implications
and will greatly help the people of India. It is a great initiative by the government that I
personally wholeheartedly support.
Currently, every year around 10 lakh American tourists visit India. That is 2740
tourists every day. Such a figure is huge. However, with a tourist visa on arrival facility, I
expect this number to rise greatly. This is so because, as mentioned previously, travelling to a
foreign country is a process full of many hassles, biggest of them being getting a visa. To
obtain a visa, one must apply at least fifteen-twenty days in advance and submit large amount
of paperwork, give several interviews and travel frequently between his/her home and the
embassy. Such a process takes a lot of time as well as costs quite a bit. This consumption of
time and money deters many tourists from wanting to travel to India. Unfortunately, apart
from time and money, many tourists often face a red tape as well, which further deters their
interest. However with a visa on arrival for tourists, the hassle will be gone and the tourists
will be able to fill a short form, provide a proof of identification and be allowed to travel in
India, as simple as that. This will attract a greater number of tourists, for now the persons
who earlier thought not to spend their time and money obtaining a visa would be interested
and tourists who would like to revisit would be able to do so more easily, for the red tape is
now gone. The image of India will be improved from red tape to red carpet and a new
enthusiasm will be shown by the tourists.
But, one might ask that what good is it to have more tourists? Would they not just add
to the commotion in the country? Yes, they do increase the number of people at the moment
in the country slightly, but they are in fact gods, not burdens (of course terrorists are a
different matter). They greatly help boost both the local and the national economy. This is so

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because from the time they enter a country, tourists spend heavily for their travels and
experiences. In fact their expenditures start even before they enter a country, coming in form
of flight tickets, baggage fees, etc. As soon as a tourist enters India, he/she takes a taxi or an
autorickshaw, instantly allowing the driver and the parent company, if there is, to make a
handsome profit. Then the tourist spends on eating and drinking, again allowing local
vendors to earn a margin. Next, as the tourist finds a place to stay, he books a hotel, paying
not only the hotel owner but also the waiters, room service staff, sweepers, and a range of
other staff for whom the hotel is their bread provider. Next, the tourist buys sight-seeing
services at a premium and spends heavily on merchandize, gift items, collectibles and other
products. Thus, tourists contribute heavily to the local and national economies. Though their
individual spendings may be only an average of 2-3 lakh rupees, combining the total
expenditure we get (250000*100000)= INR 25,00,00,00,000 (around 400 million dollars).
Such a sum is huge and collectively brings in great prosperity to the peoples of a nation, for
through tourism merchants not only engage in domestic trade, but also international trade by
interacting with persons of foreign origin.
Moreover, tourism is the great equalizer. Tourists expenditure is not accrued to big
corporations or conglomerates. Rather, with an influx of tourists, both a tea seller and a five
star hotel owner earn their respective profits. Tourists occupy hotels of all sorts, take taxis but
also rickshaws, eat in restaurants but also in dhabas and buy collectibles from malls but also
from the street shop. Tourism brings opportunity for all, and not just a few, as might happen
with foreign direct investment whose primary beneficiary are corporations and business
powerhouses. Hence, if the overall development of a country is being considered, it is
important to highlight the role that tourism plays, for with a booming tourism industry, a
greater number of people are able to be employed, resulting in greater overall production and
consumption.

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In fact, increased tourism will also help India in its monetary matters. The USD-INR
exchange rate is partly based upon the dollar reserve that the RBI has. Last year, with a
recession prevailing and decreasing exports, the dollar inflow hit a low resulting in the dollar
reaching the exchange rate of 1USD:67INR. This was primarily caused by a decreased dollar
reserve. However, such problems can be avoided with an increased tourist inflow. This is so
because tourists from USA would have to exchange their currency, dollar, into the Indian
currency, the Rupee, for otherwise they would not be able to take part in financial
transactions so easily. This exchange of currencies allows the RBI and the central
government to build a dollar reserve with greater flexibility and reduce the chances of the
rupee hitting another all-time low, which would in turn affect Indian oil and gold imports,
weapons imports, and other such international deals. Thus, increased tourism works well to
support the monetary and financial health of a country by providing the nation with ample
means to build a dollar reserve against which to support their currency in times of financial
trouble.
Moreover, tourism also works to develop the soft-power of a country. As we know,
McDonalds, Apple, Microsoft, JP Morgan, Disney, etc. have done more for American softpower as opposed to any government sponsored activities. As a result, this spread of
American culture has not only allowed American firms to read greater profits, but also has
earned America and Americans wide respect and acceptability on the global platform. Hence,
with an increased inflow of tourists, it would be possible for India to present to the world its
story of success and change the misconceptions the world today holds in regards to India.
Today, the citizens of the world believe that India is still the third-world, poor and
undeveloped country it was in the late 1960s and 70s. However, due to varied political
interests, much of the recent development in India has not been covered by the international
media, and hence the image of modern India still resonates with that of a bygone era. But

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with more inflow of tourists, it would become possible for India to showcase its growth and
earn the praise it truly deserves for having achieved such a feat in such a short span of time.
Moreover, India is home to a culture that is more than 10,000 years old. However, the world
has for long has ignored Indias rich heritage and rather has focused solely on the culture and
values of the western society. Many people who would otherwise want to learn about India
history and culture are not able to. But with an opportunity to experience the age old culture
and heritage of India, it would become possible for the world to realize where India comes
from and where is headed. With a greater understanding and appreciation of its history and
culture, India would be better received on the global stage and become ready to showcase its
true talents.
Hence, as we can see, tourism not only helps improve a countrys financial health, but
also its appeal and brand image. With this step, the Government of India has taken a step
forward in inclusive growth towards a time when India and Indians are not only financially
secure but also well received at the global stage. It is truly a very encouraging news that we
all must understand and be proud of.

On my Honor I pledge that I have neither received nor given any improper assistance in
completing this task.

Works Cited
"Visa on Arrival Facility on the Anvil for US Tourists." economictimes.indiatimes.com.
Bennett, Coleman & Co. Ltd, 21 Sept. 2014. Web. 23 Sept. 2014.
<http://economictimes.indiatimes.com/nri/visa-and-immigration/visa-on-arrivalfacility-on-the-anvil-for-us-tourists/articleshow/43071161.cms>.

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