The tariff hikes by the United States on Indian exports highlight vulnerabilities in overdependence on limited trade partners. Strengthening tourism as an economic engine can diversify growth, create jobs, boost foreign exchange, and build national resilience.

Present Status of Tourism in India

• Current Contribution: Tourism contributes only 5% of India’s Gross Domestic Product, below the global average of 10%.
• Global Comparison: Spain and the United Arab Emirates derive about 12% of their Gross Domestic Product from tourism.
• Inbound Earnings: In 2024, inbound tourism earned $28 billion.
• Outbound Spending: Outbound travel is rising, about 28 million Indians spent $28–31 billion.
• Future Potential: Raising the share of tourism to 10% of Gross Domestic Product could add $516 billion annually, create 40 million jobs, and raise foreign exchange earnings to $130–140 billion.

Employment and Livelihood Impact

• Labour-Intensive Sector: Provides employment in transport, hospitality, food services, handicrafts, wellness, and entertainment.
• Inclusive Growth: Creates opportunities for both skilled urban professionals and semi-skilled rural youth.
• Multiplier Effect: Each rupee spent circulates through local enterprises, handicrafts, and community businesses.

Constraints in Tourism Growth

• Infrastructure Deficit: Only 1.8 lakh branded hotel rooms and 1.5 million unbranded rooms, requiring a threefold increase.
• Visitor Experience Issues: Complicated visa procedures, long immigration queues, and weak branding reduce competitiveness.
• Investment Gaps: Limited recognition of tourism as infrastructure discourages private investment and public–private partnerships.

Strategic Pathways for Growth

• Destination Development: Build 50 world-class destinations in partnership with states, shifting India’s image from a “place to see” to a “place to experience.”
• Seamless Travel Experience: Simplify visa and immigration processes; airline expansion with 1,000 new aircraft can boost connectivity.
• Promotion and Branding: Use artificial intelligence, content-led storytelling, influencer engagement, and global digital platforms.
• Private Investment: Include tourism in the harmonised master list of infrastructure and expand public–private partnerships.
• Domestic Tourism: Strengthen the Dekho Apna Desh campaign; with 86% of revenues from domestic travel, promote national integration and cultural exchange.

Sustainable and Niche Tourism

• Green Growth Driver: Tourism can create livelihoods without large-scale environmental costs.
• Wellness and Spiritual Tourism: Rising global demand for yoga, Ayurveda, spiritual journeys, and wellness retreats.
• Medical and Cultural Tourism: Potential to leverage India’s strengths in healthcare, heritage, and immersive cultural experiences.

Way Forward

• Expand Infrastructure Capacity: Triple hotel accommodation and allied facilities.
• Ease of Travel: Streamline visa, immigration, and interstate travel systems.
• Digital Empowerment: Promote artificial intelligence, digital payments, and e-commerce platforms to expand reach.
• Private Sector Role: Incentivise investments and expand public–private partnerships in hotels, ropeways, and convention centres.
• Sustainability Focus: Prioritise eco-tourism and community-led initiatives.
• Domestic Integration: Make interstate travel affordable and accessible to redistribute benefits and strengthen national unity.

Conclusion

• Tourism provides jobs that cannot be offshored, demand that cannot be taxed abroad, and pride that strengthens communities. By making it a national growth priority, India can anchor prosperity and achieve Viksit Bharat by 2047.

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