Tourism is one of the productive business activities directed for the production of the goods and services. It provides the goods and services for the customers (mainly visitors), generally while providing employment and income for the locals. Due to forward and backward linkages, Tourism industry in India is the major source for sustainable economic development with other prominent sectors of economy. The Indian Tourism Industry has flourished in the past few years, contributing to the Foreign Exchange Earnings, Gross Domestic Product, Employment in other words we can say in overall Nation’s Development. Now-a-days, tourism is the flourishing industry. The advantages of tourism includes service sector growth, increase in opportunities of employment, earnings in foreign exchange, recreation, growth of economy, socializing,  constructive and humanistic exchange for better international relations and no doubt enjoyment as well. Good health and better wellness is also among the advantages of tourism. In world trade measurement Tourism is an important factor for all the economies, which helps in foreign earning, tourism provides employment to various people, it is also an important tool which can be used for cultural and social exchange. Tourism is only an industry which creates many indirect employments with every direct employment. To finance the tourism sector, several strategies and sources may be tapped. Among these, domestic private investment, foreign direct investment, government budget and foreign aid (bilateral and multilateral) are vital. Therefore, here we will focus on review of economic and financial impacts of tourism industry in India.

KEYWORDS: Sustainable Economic Development, Tourism Industry, Financial Impact.