India’s travel and tourism market is on track to reach a revenue of USD 23.72 billion in 2024, with an estimated annual growth rate of 9.62% according to the India Brand Equity Foundation (IBEF). Projections indicate that this growth trajectory will propel the market volume to USD 34.25 billion by 2028.
Prime Minister Narendra Modi’s emphasis on preserving India’s rich heritage while developing world-class tourism infrastructure has been pivotal in shaping the sector’s growth. The recent announcement of 100% Foreign Direct Investment (FDI) in tourism-related ventures, including hotels and recreational facilities, aims to foster further development in the industry.
The package holidays market is emerging as the largest segment, with a projected market volume of USD 10.48 billion in 2024. By 2028, the number of users in this segment is expected to increase significantly, reaching 64.74 million. The average revenue per user (ARPU) in the package holidays market is forecasted to be USD 209.70 by 2028, with online sales contributing 60% of the total revenue.
In alignment with global trends, India’s tourism industry is focusing on promoting sustainable and eco-friendly travel options to attract travellers. The sector is poised to contribute USD 250 billion to the country’s GDP by 2030, generating employment for 137 million individuals.
Prime Minister Modi’s recent dedication and launch of 52 tourism sector projects worth over Rs 1400 crores under the Swadesh Darshan and PRASHAD Scheme demonstrate the government’s commitment to tourism infrastructure development. These projects aim to enhance visitor experiences and promote community participation in tourism initiatives.
Additionally, visionary campaigns such as ‘DekhoApnaDesh People’s Choice 2024’ and ‘Chalo India Global Diaspora Campaign’ seek to engage citizens and the Indian diaspora in promoting tourism and showcasing India’s cultural heritage. The revamped Swadesh Darshan 2.0 Scheme further underscores the government’s commitment to integrated destination development and community engagement in tourism projects.
With India’s tourism industry poised for exponential growth, driven by infrastructure development and rising disposable incomes, the nation is set to emerge as a leading global tourism destination. Through strategic partnerships and innovative campaigns, India aims to unlock its vast tourism potential and position itself as a premier destination for travellers worldwide.
India’s tourism sector is undergoing a transformative phase, characterized by robust infrastructure development, technological advancements, and evolving consumer preferences. The government’s proactive measures, such as the promotion of sustainable tourism practices and the facilitation of foreign investment, are instrumental in driving the industry’s growth trajectory.
The emphasis on promoting local communities’ participation in tourism initiatives not only enhances visitor experiences but also contributes to inclusive development and empowerment. By leveraging India’s diverse cultural heritage and natural attractions, the tourism sector has the potential to become a major driver of economic growth and job creation.
Strategic initiatives like the ‘DekhoApnaDesh People’s Choice 2024’ campaign and the ‘Chalo India Global Diaspora Campaign’ play a pivotal role in engaging stakeholders and fostering a sense of pride in India’s rich heritage. These campaigns aim to showcase the country’s cultural diversity and historical significance to a global audience, thereby enhancing its appeal as a tourist destination.
Moreover, the government’s commitment to integrated destination development through schemes like Swadesh Darshan and PRASHAD underscores its vision for sustainable tourism. By investing in infrastructure projects at pilgrimage sites, heritage destinations, and recreational facilities, India aims to enhance visitor experiences and boost tourism revenue.
As the tourism industry continues to evolve, innovation and collaboration will be key drivers of its success. Strategic partnerships with stakeholders across sectors, including hospitality, transportation, and technology, will facilitate the seamless integration of services and enhance the overall tourist experience.
Looking ahead, India’s tourism industry is poised for exponential growth, fuelled by a combination of favourable policies, infrastructure development, and increasing international recognition. By capitalizing on its unique strengths and addressing emerging challenges, India has the potential to emerge as a premier global tourism destination, offering enriching experiences for travellers from around the world.
Through concerted efforts and a shared vision for sustainable development, India is well-positioned to realize its ambition of becoming a leading player in the global tourism landscape. As the nation continues on its journey towards economic prosperity and inclusive growth, tourism will undoubtedly remain a cornerstone of its development agenda.