Tourism activities are considered to be one of the major sources of economic growth. The importance of tourism to economic development has been widely recognized due to its contribution to the balance of payments, GDP and employment. Tourism has gradually grown over the years as a full fledge industry. The significant impact of international tourism in stimulating economic growth is admirable. For this reason, the relationship between international tourism and economic growth would seem to be
an interesting and contemporary empirical issue. Current research paper attempts to examine the causal relationships between GDP and Receipts from tourism sector in India. Augmented Dickey-Fuller (ADF) for unit root, Johanson for cointegration and Granger causality test to examine the causal relation have been employed between GDP and Receipts from tourism sector in India by using the data over the period of 1991-2017. The findings of the study showed the presence of unidirectional causality from tourism earnings to economic growth