The purpose of this study is to determine how rural tourism impacts the economy of Madhya Pradesh. The economic impacts can be measured through GDP growth, employment growth, infrastructure growth, etc. GDP was considered in this study to measure the economic impacts. The data for GDP and foreign tourism was taken to check if tourism has positive or negative economic impacts. It is hypothesized that tourism has a positive impact on the economy. According to many researchers, tourism, especially foreign tourism, significantly impacts the economy of the destination. Researchers argue that employment opportunities and trading are directly linked to tourism. Employment and trading opportunities increase with tourism. Regression analysis was conducted in this study to test the economic impacts of tourism in Madhya Pradesh. The results showed that tourism has significant economic impacts on Madhya Pradesh. This paper concludes that rural tourism has positive economic impacts on Madhya Pradesh.