India Taj Mahal in Agra Agriculture Automotive Banking Chemicals Communications Education Financial Mining Other Service Manufacturing Manufacturing Services Retail (without wholesale) Total How does compare to other sectors? India GDP Impact by Industry $US billion (2014 prices) 600 Indirect & Induced 500 400 300 200 GDP Size generated a total impact of $US 125 billion of India s GDP in 2014. total GDP impact is larger than that of the automotive manufacturing, mining, education, and chemicals manufacturing sectors. In terms of its direct GDP, is slightly larger than that of the mining sector and more than four times larger than that of the automotive manufacturing industry. 100 India GDP Impact by Industry Share of total economy GDP 35% Indirect & Induced 30% 25% Share Based on its direct, indirect, and induced GDP impact, generated 6.7% of India s GDP in 2014. This is nearly twice the size of automotive manufacturing s GDP impact at 2.8%. 15% 5% 0 1
India Employment Impact by Industry 2014, millions 300.0 Indirect & Induced 250.0 200.0 150.0 100.0 50.0 Employment Employment Size sustained a total of 36.7 million direct, indirect, and induced jobs in India in 2014. in India directly employs more people than the banking, automotive manufacturing, chemicals manufacturing, education, financial services, and mining sectors. Of note, directly supports twice as many jobs as the education sector in India. 0.0 India Employment Impact by Industry Share of total economy employment 70% Indirect & Induced 60% 50% Employment Share generated, either directly or indirectly, 8.7% of employment in India in 2014. For every job directly in the sector, nearly one additional job is created on an indirect or induced basis, making its linkages stronger than in both the agriculture and education sectors. 40% 30% 0% Growth Growth Trends India GDP Forecast by Industry CAGR% 2015-2025 0.8% 1.9% 4.2% 5.2% 5.2% 5.9% 6.1% 7.0% 7.6% 8.2% direct industry GDP expanded 227% between 1995 and 2014 while the total economy expanded 278%. The mining industry grew just 137% over this 19-year period. The education industry grew 323% over this 19-year period. The automotive manufacturing industry grew 749% over this 19-year period. Growth Forecast GDP is expected to grow at an annual average of 7.0% over the next decade. In comparison, the total economy is expected to expand 5.2% per annum, while education is forecast to grow 4.2% per annum in real, inflation-adjusted terms. 2
India Service (2014) 20,058 137,141 $US million Tourism s Share of is a significant source of export revenue for India. In 2014, visitor exports totalled $20.1billion. This was 13% of all service exports and 4.2% of all exports (including goods and services). Growth of Tourism Between 2000 and 2014, India s Travel & Tourism exports expanded 457%. Total exports of goods and services outpaced exports and grew 715% between 2000 and 2014. Impact of $1m spending India GDP ($m) 1.6 Induced 1.4 Indirect 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Leakages per $100 spend India Imports 25% Supplier Imports Linkages Comparing the effect of $1 million in spending Spending in a sector will have varying impacts on GDP, depending on the local value added and linkages to the rest of the economy. In India, $1 million in spending (consumption) generates $1.3 million in GDP. This is roughly the same impact as the mining and communications sectors. How much of T&T spending stays in the economy? When travellers spend money in a destination, not all of it remains in the economy as some goods and services need to be imported. This represents leakage to the economic value produced. In India, a mere of spending leaks out of the economy through imports. The chemicals industry requires imports amounting to 22% of sales. Beneficiaries of 15% 5% 0% 3 is interconnected with the entire Indian economy. These links exist through the supply chain to the Tourism industry (indirect linkages) as well as through Tourism-earned incomes as they are spent across a variety of other sectors. In this sense, the sector has many beneficiary sectors across the whole spectrum of the economy. For every $1 million in sales, $189,000 of GDP is generated in the agriculture sector. The wholesale and retail sector gains $109,000 for every $1 million in spending on.
Jobs 1200 1000 800 600 400 200 0 Employment Impact of $1m spending India Induced Indirect Employment Generation s employment potential For every $1 million in spending, 407 jobs are supported. (258 direct, 94 indirect and 55 induced) This compares favourably to the average of the economy, which generates 599 jobs per $1 million in spending. Agriculture: 813 jobs per $1 million Financial services: 329 jobs per $1 million Education: 1,054 jobs per $1 million Auto manufacturing: 315 jobs per $1 million Communications: 381 jobs per $1 million Chemicals: 231 jobs per $1 million GDP, 2014 ($US billion, 2014 prices) Indirect + Induced Total % Total Agriculture 342 156 497 26.8% Mining 38 26 64 3.5% Chemicals Manufacturing 29 69 98 5.3% Automotive Manufacturing 11 41 52 2.8% Retails (without wholesale) 138 361 499 26.9% Financial Services 331 233 564 30.4% Banking 153 120 272 14.7% Education 54 37 92 4.9% 41 85 125 6.7% Employment, 2014, Indirect + Induced, Total, % Total Agriculture 203,250 62,643 265,893 63.3% Mining 2,152 17,697 19,849 4,7% Chemicals Manufacturing 1,699 14,061 15,760 3.8% Automotive Manufacturing 1,076 9,283 10,359 2.5% Retails (without wholesale) 32,764 195,522 228,286 54.4% Financial Services 5,060 12,461 17,521 4.2% Banking 2,297 4,217 6,514 1.6% Education 11,466 5,015 16,481 3.9% 23,024 13,671 36,695 8.7% 4
Data Sources & Methodology GDP & Employment: Main data sources for comparative sectors: United Nations International Labour Organization; OECD; CEIC Data Manager; Eurostat (European Commission); UK Office for National Statistics (ONS); Oxford Economics Cities and Regions Forecasting Service; UNESCO; Groningen Growth and Development Centre; UN World Input-Output Database (WIOD); Oxford Economics Global Industry Model; Oxford Economics Global Economic Model; Oxford Economics UK Regional Model; and Various country-specific National Statistics Office websites GDP and employment figures are drawn from Oxford Economics analysis for WTTC using the Tourism Satellite Account framework. Main data sources: World Trade Organization (WTO) IMFBOPA Oxford Economics. Total exports, total service exports and total goods/merchandise exports are sourced originally to national accounts and central bank balance of payments data. Service exports taken from IMFBOPA database for all countries where possible. 2000 figures taken from above, 2014 estimated using 2013 shares of total and applied to totals for 2014. All currency figures are stated in 2014 US dollars. Linkages Main data sources: OECD, National Statistical Offices, Oxford Economics Input-output tables for all countries were sourced from either the OECD or, when not available, National Statistical Offices. From the input-output tables, multiplier matrices were developed for each economy, detailing the flow of spending in an economy that occurs as a consequence of spending in a given industry. For each of the comparator sectors, a spending shock of $1 million was simulated, with the resulting spending impacts in every industry in the economy recorded. These spending outcomes were translated into gross value added (GVA) using the GVA/output ratios available in the input-output tables, and employment, using productivity level data developed from the GDP and employment figures derived elsewhere in the study. multipliers are drawn from Oxford Economics / WTTC ongoing Tourism Satellite Account analysis. Global and regional multipliers were calculated as the weighted average of all relevant nations, with weightings assigned according to sector GDP. About WTTC & Oxford Economics The World Council (WTTC) is the forum for business leaders in the industry. With Chief Executives of some one hundred of the world s leading companies as its Members, WTTC has a unique mandate and overview on all matters related to. WTTC works to raise awareness of as one of the world s largest industries, supporting 260 million jobs and generating 9 per cent of world GDP in 2012. WTTC advocates partnership between the public and private sectors, delivering results that match the needs of economies, local and regional authorities and local communities with those of business. Oxford Economics is one of the world s leading providers of economic analysis, forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford University s business college, Oxford Economics enjoys a reputation for high quality, quantitative analysis and evidence-based advice. For this, its draws on its own staff of over 70 highly-experienced professional economists; a dedicated data analysis team; global modelling tools, and a range of partner institutions in Europe, the US and in the United Nations Project Link. Oxford Economics has offices in New York, Philadelphia, San Francisco, Chicago, London, Oxford, Belfast, Dubai, and Singapore. The Harlequin Building 65 Southwark Street London, SE1 0HR United Kingdom T. +44 (0)20 7481 8007 F. +44 (0)20 7488 1008 E. enquiries@wttc.org www.wttc.org