Tourism plays an important role in the regional development of the developing countries through the creation of work opportunities. Many countries are interested in the development of tourism industry due to its economic benefits. Due to the rate of growth of Indian economy Indian tourism has progressed. It comprises many sub-industries such as the hospitality industry, transport industry and entertainment. All these sectors are interconnected. These sectors are working together for the survival. Tourism is responsible for creating the awareness of the value of their cultural heritage and environment among the local people. Some countries have no possibility of economic development but a significant level of international tourism should be regarded an essential. It has the potential to not only be the economic driver but has also become an effective tool for employment opportunity and ensuring growth with equity. Jammu and Kashmir also known as a land of full of sacred Shrines of all religions like Amarnath Cave, Vaishno Devi, Baba Buda Shah, etc., that are frequently visited for their architecture and sanctity. Most well known pilgrim center in Jammu is Shri Mata Vaishno Devi Shrine. About 7 million pilgrims pay their obeisance in the Shrine every year. This paper highlights the relation between the income and employment of Ponywalas and religious tourism in Katra and Econometric model is used to test the hypothesis. This study is based on primary and secondary data. The income of Ponywalas which were involved in tourism sector in Katra was positively related to the growth of religious tourism in Katra except the employment of Ponywalas.
