Care Economy and Tourism Sector Reforms Highlighted as Pillars for Developed India

Livemint - Economy · 10 Mar 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

PM Modi emphasized healthcare, education, and tourism as foundational sectors for India's economic growth, with specific focus on expanding the care economy and leveraging tourism for job creation.

Key points

Care Economy: PM Modi highlighted the care economy, which includes healthcare, elderly care, and childcare, as a sunrise sector with potential to employ 60 million by 2030, generating $300 billion in market value.

Budget FY27: The Union budget proposed training for 150,000 caregivers to strengthen healthcare and social support systems, aligning with the care economy's growth.

New Education Policy (NEP): Modi linked education reforms under NEP to job market demands, emphasizing AI, automation, and digital economy to modernize the curriculum.

Tourism Sector: Developing new tourism destinations beyond traditional spots was highlighted as a strategy for job creation and urban development.

AVCG Sector: The government is promoting Animation, Visual Effects, Gaming, and Comics (AVCG) as part of an innovation-driven economy.

[GS2-Social Justice] The care economy's expansion is critical for women's workforce participation, aligning with the rising Female Labour Force Participation Rate (41.7% in 2023-24).

[GS3-Economy] The tourism sector's potential as a job engine connects to India's broader economic strategy, including the creation of five medical tourism hubs and a National Institute of Hospitality.

STEM Focus: Modi stressed increasing women's participation in STEM fields to ensure inclusivity in futuristic technologies.

Way Forward: India should formalize the care economy through skilling programs, integrate tourism with local community participation, and enhance digital connectivity for remote healthcare services.

Key terms

AVCG Sector

Animation, Visual Effects, Gaming, and Comics (AVCG) represent a burgeoning creative economy. For UPSC, this sector highlights India's potential in digital innovation and global entertainment markets.

STEM

Science, Technology, Engineering, and Mathematics (STEM) fields are critical for technological advancement and economic growth. UPSC relevance lies in policies promoting gender parity and skill development in these areas.

Care Economy

The care economy encompasses paid and unpaid services for caregiving, including healthcare, childcare, and elderly care. For UPSC, it is significant as a growing sector that can drive employment, especially for women, and address demographic shifts like ageing populations.

New Education Policy (NEP)

NEP 2020 is a comprehensive framework to transform India's education system by emphasizing skill development, multidisciplinary learning, and technology integration. It is relevant for UPSC as it aligns with India's economic and employment goals.