Increased realization of the benefits of rural tourism has set into motion numerous initiatives by the Indian government to harness its potential in attracting domestic and international travelers. In the light of these developments, this article explores the rural tourism scenario in India, with special emphasis on the benefits it bestows on the economy and the challenges embedded in its growth trajectory.

India, with its diverse cultures, religions, distinctive styles of architecture, temple towns and historical monuments, is a one stop shop for unique experiences. The variegated nature that extends from the mighty Himalayas at one end to the stunning beaches that beautify the coastline at the other rejuvenates the mind and soul. The Travel and Tourism Competitiveness Report (2009) prepared by the World Economic Forum, placed India at the 11^th position in the Asia Pacific region and 62^nd globally, among 133 countries that were assessed in 2008. Over the years, the contribution of tourism sector to the world's GDP has been increasing, making it a sector of focus for economic development in many countries. Following this, the Indian government has stepped up its initiatives to develop and bring to the forefront new differentiators in this sector, such as ayurveda, medical and rural tourism.

The Indian tourism industry's performance has been quite impressive during recent years. The number of foreign tourist arrivals has increased from 2.537 million in 2001 to 5.380 mn in 2008. Foreign exchange earnings from tourism have increased even faster from $3.198 bn to $11.747 bn over the same period.

Marketing Mastermind Magazine, Rural Tourism, World Economic Forum, Economic Development, Foreign Exchange Earnings, World Tourism Organization, Government Interventions, Tourism Industry, United Nations Development Program, UNDP, Infrastructure Development, Rural Development.