Tourism is a multi-segment industry and considered to be an economic bonanza. While gauging the Positive economic effects of tourism, we study its contribution to the generation of national income, expansion of employment opportunities, rising of tax revenue, generation of foreign exchange and transformation of regional economy. India is a country with rich cultural and traditional diversity. This aspect is even reflected in its tourism. The different parts of the country offer wide variety of interesting places to visit. It also examines the impact of India’s economic growth on tourism, contributors to economic growth, Role of Tourism industry in India’s GDP. The paper also explores that there has been a tremendous growth in tourism by domestic tourist visit and foreign tourist visits in India because of the policies of the government and support from all levels. Key-words: Gross Domestic Products (GDP), Domestic Tourist Visits (DTVs), Foreign Tourist (FTVs)