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Introduction

According to the Travel and Tourism Development Index 2024 (WEF), India ranked 39th, up from 54th in 2021, reflecting improved tourism competitiveness. Yet, with tourism contributing only 5% to GDP against the global average of 10%, major reforms are needed to unlock its full potential.

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Challenges of Tourism Sector

• Low GDP Contribution Compared to Global Average: Tourism contributes only 5% to India’s GDP versus 10% globally.
  Eg: Spain and UAE derive ~12% of GDP from tourism, showcasing missed potential for India.
• Inadequate Infrastructure & Capacity Constraints: Limited number of branded hotel rooms (~1.8 lakh) and unbranded rooms (1.5 million), far below demand.
  Eg: India needs to triple current capacity to attract global events and handle rising domestic/outbound travel.
• Poor Tourist Facilitation & Connectivity: Lengthy e-visa processes, long immigration queues, and uneven international flight connectivity reduce competitiveness.
• High Outbound Tourism & Forex Drain: Growing outbound travel (~28 million Indians in 2024) with $28–31 billion spent abroad drains potential domestic revenue.
  Eg: Indian travellers among highest global spenders, preferring luxury and immersive overseas experiences.
• Weak Branding & Marketing: India is positioned as a “place to see,” not a “place to experience.”
  Eg: Despite wellness, spiritual and cultural tourism potential, limited digital storytelling and global influencer engagement undermine visibility.
• Regulatory & Investment Gaps: Tourism not fully treated as infrastructure limits private/PPP investments in hotels, ropeways, convention centres.
  Eg: Inclusion in Harmonised Master List of Infrastructure is still partial, restricting capital inflows.

Measures to Achieve Target

• Develop World-Class Destinations: Create 50 global-standard hubs blending infrastructure, sustainability, and branding in partnership with states.
  Eg: Union Budget initiative to identify 50 tourist destinations across India.
• Simplify Facilitation & Connectivity: Expand e-visa, speed up immigration, and strengthen air/rail links for seamless tourist flow.
  Eg: Streamlining arrival experience alongside 1,000 new aircraft to boost international inflows.
• Strengthen Digital Marketing & Global Branding: Use content-led promotion, influencer collaborations, and AI-enabled curation to showcase India’s diversity.
  Eg: Expand “Dekho Apna Desh” campaign into a global digital storytelling movement.
• Encourage Domestic Tourism: Make inter-state travel affordable, improve amenities, and promote cultural exchange to leverage 86% revenue from domestic tourists.
• Catalyse Private Investment through Infrastructure Tagging: Expand Harmonised Master List inclusion to attract FDI, PPP models, and large-scale hospitality projects.
  Eg: PPP in hotels, ropeways, and convention centres can multiply sectoral growth.
• Leverage Niche Strengths – Wellness & Medical Tourism: Tap into India’s civilisational assets like Ayurveda, spirituality, and healthcare to attract high-value global tourists.
  Eg: Wellness tourism and medical value travel already align with India’s cultural and health strengths.

Conclusion

Tourism can be a growth engine for jobs and cultural pride. Schemes like Dekho Apna Desh, Swadesh Darshan 2.0, and PRASHAD show commitment to sustainable tourism. Strengthening such initiatives with private sector support can help double India’s tourism GDP share and position it as a global hub.

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