Can Tourism Help In Reshaping a Country’s Informal Sector? Evidence From India
Keywords:
Economic Integration, Informal Economy, TourismAbstract
ABSTRACT
The informal sector in India, employing over 80% of the workforce, faces socio-economic vulnerabilities and limited access to formal systems. This study explores how tourism can promote the formalisation of traditional sectors such as handlooms, handicrafts, leather, and the gig economy, thereby enhancing economic stability and cultural preservation. By linking artisans to global markets, both physical and virtual tourism enable high-value sales, as exemplified by luxury brands like Louis Vuitton. Despite this potential, artisans face structural barriers and lack institutional support. Current initiatives like "Make in India" fall short in addressing these gaps. This paper adopts a mixed-method exploratory approach, using semi-structured interviews as research tools, conduct cross-sectional regression and correlational analysis to examine the link between tourism and formalization of traditional sectors, with implications for achieving relevant Sustainable Development Goals.
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