The tourism industry is considered to be one of the fastest-growing industries which are gaining popularity among the people. Rajasthan is the state which is considered to be quite attractive among the tourist because of its culture and rich heritage.  Rajasthan is attracted to multiple tourists from domestic and international countries. The main reason behind the tourist attraction in Rajasthan is because of its palaces, forts, culture and rich heritage. With the growing tourism in Rajasthan, the tourism industry is getting boosted which is leading to the development of economy in multiple ways like the generation of employment, infrastructure development, socio-economic growth, capital investment, earning from foreign exchange and most importantly it is leading to improve the GDP contribution. This paper will be detailing how tourism is impacting the economic development of Rajasthan with the identification of factors that are having a strong influence on the tourism industry. It will also be specified about the benefits and challenges which are being faced by the state for tourism development.

KEYWORDS: Economic Development, Tourism, Rajasthan, Tourists, Benefits and Challenges.