Tourism provides an alternative growth engine by creating jobs, earning foreign exchange, and strengthening economic resilience.
- The recent decision by the US to impose higher tariffs on Indian exports highlights vulnerabilities of overdependence on merchandise trade.
Current Status of Tourism in India
- Share in GDP: Tourism contributes ~5% of India’s GDP, lower than the global average of ~10%; countries like Spain and UAE reach about 12%.
- Foreign exchange earnings (2024): USD 28 billion (₹2.45 lakh crore).
- India ranked 14th globally in tourism receipts.
- Outbound tourism: 28 million Indians travelled abroad in 2024, spending USD 28–31 billion.
- Employment: Among the most labour-intensive sectors, creating jobs across hospitality, transport, handicrafts, wellness, and food services.
WTTC Report 2024–25
- Released by: World Travel & Tourism Council (WTTC) + Oxford Economics, April 2025.
- Coverage: 184 countries + 28 regions.
- Metrics: Contribution to GDP & jobs, domestic vs international spending, leisure vs business, capital & govt. investment, outbound spending.
- India’s Rank: 8th largest tourism economy (USD 231.6 bn).
- Global Leaders: USA (USD 2,360 bn), China (USD 1,300 bn), Germany (USD 487.6 bn)
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Potential of Tourism
- GDP Contribution: Raising tourism’s share to 10% of GDP in the next decade could add $516 billion annually to the economy.
- Employment: Estimated creation of 40 million new jobs across sectors linked to tourism.
- Foreign Exchange: Potential to generate $130–140 billion in annual foreign exchange earnings.
- Capacity Gap: Current availability stands at 1.8 lakh branded hotel rooms and 1.5 million unbranded rooms; capacity must be tripled to meet future demand and stay globally competitive.
- High economic multiplier: Spending flows into multiple sectors (transport, crafts, food services, communities).
- Expanding niches: Wellness tourism, spiritual journeys, medical value travel, immersive cultural experiences aligned with India’s civilisational strengths.
- UNESCO World Heritage Sites: India has 44 sites inscribed (till 2025),India ranks 6th globally and 2nd in Asia Pacific Region for the most number of World Heritage Sites.
Government Measures for Tourism in India
- National Tourism Policy 2022 (draft): Focus on sustainable and inclusive tourism with 5 key themes – Green, Digital, Destination, Skill, and MSME tourism.
- Incredible India 2.0 Campaign: Themed global marketing campaigns highlighting Indian heritage, yoga, wellness, and culture.
- Swadesh Darshan & Swadesh Darshan 2.0: Development of thematic circuits (Buddhist, Spiritual, Heritage, Desert, etc.) with focus on sustainability and destination-based approach.
- PRASHAD Scheme (Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive): Infrastructure development at pilgrimage and heritage sites.
- 50 Tourist Destinations (Budget 2023–24 & 2024–25): To be developed as world-class destinations with integrated branding and amenities.
- e-Visa Facility: Extended to citizens of 160+ countries for tourism, medical, and business purposes.
- Dekho Apna Desh Campaign: Promoting domestic tourism; 86% of tourism revenues come from domestic travelers.
- Incredible India Digital Platform: Multilingual content, influencer collaborations, and AI-driven storytelling.
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Way Forward for Tourism in India
- World-Class Infrastructure
- Develop integrated tourist destinations with good transport, accommodation, safety, and sanitation.
- Improve last-mile connectivity and visitor facilities.
- Ease of Travel
- Simplify visa processes and improve airport/railway arrival experiences.
- Strengthen domestic air and road networks to reach remote areas.
- Diversification of Tourism Offerings
- Promote niche sectors: wellness, medical, spiritual, adventure, rural, and eco-tourism.
- Highlight India’s cultural heritage, festivals, crafts, and cuisine.
- Skill Development & Employment
- Train guides, hospitality staff, artisans, and entrepreneurs.
- Encourage local community participation for inclusive growth.
- Private & Community Participation
- Encourage PPPs in hotels, convention centres, ropeways, and eco-parks.
- Support homestays and small enterprises for local economic benefits.
- Digital Promotion & Branding
- Use global campaigns, influencers, and digital storytelling to showcase India.
- Create multilingual online content and smart tourism apps.
- Sustainability & Responsible Tourism
- Protect fragile ecosystems, regulate carrying capacity, and promote eco-certification.
- Encourage green transport, waste management, and cultural sensitivity.
26 Aug 2025
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