India’s tourism sector is an energetic driver of economic growth, cultural interaction, and jobs, indicative of the country’s unmatched diversity and heritage. Through March 02, 2025, the sector is expanding at a rapid rate, contributing significantly to India’s GDP and employment landscape. Informed by the latest India Brand Equity Foundation (IBEF) report and other reliable sources, this SEO-friendly article considers the sector’s situation, post-pandemic government response, the revolutionary Dekho Apna Desh initiative, its GDP contribution, and the challenges most likely to shape its path in the coming decade.
Current Status of India’s Tourism Sector
India’s tourism sector is an economic pillar, combining cultural wealth with significant economic contribution. This is a comprehensive overview of its current status:
Economic Contribution
GDP Contribution: In 2023, the travel and tourism sector contributed around US$ 199.3 billion to the GDP of India, which is 5.9% of the total GDP (IBEF, November 2024). Different estimates of 4.6% to 9% differ with the source, reflecting post-pandemic recovery and different methodologies.
Growth Projection: The sector needs to grow to US$ 512 billion in 2028, which is double the present figure of around US$ 256 billion (IBEF, 2024).
Foreign Exchange Receipts: Tourism received ₹2.31 lakh crore (US$ 27.8 billion) of foreign exchange in 2023, a sharp rise compared to previous years.
Career Opportunities
Current Employment: In FY23, the sector employed 35 million people, up by 8.3% from 2022 (IBEF, 2024). The Hotels’ Association of India (HAI) puts this at 50 million direct and indirect employment in 5-7 years.
Long-Term Prospects: The jobs it is expected to provide in the coming decade stand at 63 million, highlighting its position as a top employment driver.
Tourist Arrivals
Foreign Tourist Arrivals (FTAs): In 2023, India has seen 9.24 million foreign visitors, a 43.5% rise over 2022, and will reach 30.5 million FTAs by 2028 (IBEF, 2024).
Domestic Tourism: The top domestic tourist arrivals in 2021 were Uttar Pradesh (109.74 million), Tamil Nadu (115.35 million), and Karnataka (81.37 million), which reflects strong domestic travel demand.
Government Initiatives Reviving Tourism Post-Pandemic
In the post-COVID-19 world, the Indian government launched a series of initiatives to boost tourism, focusing on accessibility, infrastructure, and niche markets.
Promotion Campaigns
Incredible India 2.0: It is based on wellness, adventure, and spirituality tourism to entice international tourists.
Dekho Apna Desh: Rolled out in January 2020, this program encourages domestic discovery of India’s off-the-beaten-path destinations through digital promotion and outreach campaigns.
Rural Tourism Boost: Rural tourism is being given a boost under Atma Nirbhar Bharat to fuel local economies.
Infrastructure and Policy Support
Swadesh Darshan & PRASAD: As the 2024 Interim Budget has sanctioned Rs. 2,449.62 crore (US$ 294.8 million) for the schemes, they are developing pilgrim circuits and tourist circuits. 52 projects amounting to Rs. 1,400 crore (US$ 168.5 million) were initiated in 2024 alone.
All India Tourist Vehicles Rules, 2021: Tourist transport over state boundaries approved online.
E-Visa Expansion: Now covering 167 countries, the e-Visa program has made entry easier, increasing arrivals.
Sustainability and Innovation
Eco-Friendly Focus: Workshops promote eco-friendly tourism activities.
Adventure Tourism Strategy: National plan to position India as an international adventure hub.
Integration of Technology: Technology platforms, robotics, and AI are also improving visitor experience.
How Dekho Apna Desh is Directing Domestic Tourism
The Dekho Apna Desh campaign has triggered a tourism boom in the domestic market by highlighting India’s diversity and promoting sustainable tourism. Its effect is:
Domestic Travel Growth: It steers Indian travelers to domestic destinations like Kaziranga and Kumbhalgarh, reducing outbound travel.
Economic Stimulus: It generates jobs and local revenue by stimulating rural and off-the-beaten-path destinations.
Experiential Travel: Experiential holidays include food trips, nature hiking, and culture walks.
Sustainable Practices: It promotes eco-tourism and community relations, in line with international trends.
Digital Reach: Planning travel is easy and results in discovery through social media campaigns and apps.
Contribution of India towards Tourism GDP
The tourism sector’s GDP contribution fluctuates with recovery and investment trends:
- 2021: 5.8% of GDP, supporting 32.1 million jobs (WTTC, 2021).
- 2022: US$ 199.6 billion, or 5.9% of GDP (IBEF, 2024).
- 2023: These are between 5% and 6.5% and indicate an improvement.
- 2024 Estimates: Projected to hit 9.1% of GDP (IBEF, 2024).
- Future Growth: A 7.9% annual growth rate is expected up to 2030, which may grow to US$ 405.84 billion by 2028.
Growth Drivers and Emerging Opportunities
Main Growth Drivers
Varied Attractions: From the Himalayas to a 7,500 km coastline, India’s geography enthralls visitors.
Policy Support: Tax concessions (e.g., 100% deduction under Section-35 AD for 2-star+ hotels) and visa policy relief (e.g., free visa for 5 lakh tourists) increase appeal.
Investment Boom: Ayodhya’s Rs. 85,000 crore (US$ 10.2 billion) transformation and private investment like Mahindra Holidays’ Rs. 4,500 crore project are pointers to growth.
Niche Markets
Medical Tourism: With AYUSH and modern healthcare, it attracts 21% of international travelers.
Cruise Tourism: Expected to grow from 0.4 million to 4 million passengers by 2032, and economic potential from US$ 110 million to US$ 5.5 billion.
Eco-Tourism: To grow to US$ 4.55 billion by 2027 at a 15.7% growth rate.
Spiritual Tourism: Revenues doubled to Rs. 1,34,543 crore (US$ 16.2 billion) in 2022, led by pilgrim destinations.
Challenges Facing the Indian Tourism Sector
Despite its promise, the tourism sector is confronted with significant challenges that can hinder its ascension:
Infrastructure Shortfalls
Access to Remote Areas: The majority of tourist destinations, especially in rural or mountain regions, have bad roads, sanitation, and accommodation, which deter visitors.
Global Standards Lag: India’s infrastructure lags behind international standards when compared to competitors like Thailand or Singapore, impacting high-end tourism.
Environmental Degradation
Overcrowding: Places like the Taj Mahal and Himalayan treks are under pressure from uncontrolled tourist activity, leading to erosion and pollution.
Waste Management: Lack of proper waste disposal facilities within tourist destinations enhances environmental degradation and jeopardizes sustainability targets.
Regulatory and Bureaucratic Challenges
Visa Delays: Even with the simplification of entry through e-Visas, bureaucratic delays and restrictive visa regimes for certain nationalities still make FTAs complex.
High Taxation: High GST rates (12% for hotels with Rs. 1,001-7,500 tariffs; 18% on rates above Rs. 7,501) make India higher-priced than neighbouring peers. ### Safety and Perception Issues
Tourist Safety: Incidents of harassment or crime, particularly against women, reinforce negative attitudes, even with initiatives like the Nirbhaya Fund. –
Hygiene Issues: Presence of inadequate hygiene practices in tourist hotspots and public places discourages hygiene-conscious tourists.
Uneven Development: While a few states like Uttar Pradesh and Tamil Nadu thrive, others like the Northeast lag due to lack of connectivity and promotion. –
Skill Gaps: Lack of trained hospitality personnel limits service quality, especially in new destinations.
Conclusion
India’s tourism sector, adding 5.9% to 9.1% to GDP and growing to US$ 523 billion by 2034, is an economic promise in the making. Dekho Apna Desh, Swadesh Darshan, and e-Visa are being supported by private investments to drive this growth. But filling infrastructure gaps, environmental pressures, and regulatory bottlenecks will unleash its full potential. With solutions to these issues and scaling up niche segments like medical, cruise, and eco-tourism, India can become a world tourism giant. For investors and tourists, the future is full of promise.