India’s tourism industry is anticipated to drive $512 Billion to its nations GDP by 2028. As India has 42 UNESCO World Heritage sites, 80 national parks, 10 biogeographic zones, and 441 sanctuaries, offering diverse opportunities for investments in wildlife, cultural, medical, eco, and adventure tourism. India will soon become the 4th largest global spender on tourism by 2030, with an estimated $410 Billion growth potential.
According to WTTC, in terms of travel & tourism’s India was ranked 10th among 185 countries in the total contribution to GDP in 2019. The contribution of India's travel and tourism industry to India's economy was valued at $199.6 billion in 2022.
The stake of Foreign Tourist Arrivals (FTAs) in India during December 2023 amongst the top 5 ports was maximum at Delhi Airport (29.92%) then Mumbai Airport (18.46%), Haridaspur Land Check Post (7.09%), Chennai Airport (7.02%), and Bengaluru Airport (6.20%). FTAs between the periods of January to December 2023 was 9.24 million. Also, the G-20 Presidency will provide Indian tourism industry an unparalleled opportunity to highlight India’s tourism contributions and share India’s tourism achievement on a global stage.
The Ministry of Tourism has destination based skill development training programme at several places in the country to train local people who were located in near to most of the tourist sites and destinations. Approx. 12,187 individuals have been trained till now at 145 destinations. The Ministry has permitted 46 projects under its PRASHAD Scheme, with three in Andhra Pradesh. Moreover, 29 sites have been recognised for development under this scheme, with two located in Andhra Pradesh. The tourism ministry has started the ‘NamasteIndia’ Campaign for inspiring international visitors to travel to India.
The Prasad Scheme and Swadesh Darshan Scheme are two significant initiatives by the government that put emphasis on emerging theme-based tourist circuits and offering better facilities at religious as well as heritage sites. To boost these schemes further, the Prime Minister of India Mr. Narendra Modi inaugurates and discloses 52 tourism projects valued at Rs. 1,400 crore ($168.5 million) under the PRASHAD and Swadesh Darshan Scheme.
Robust Demand
Indian tourism and hospitality industry now offering world-class healthcare amenities, traditional healing practices, medical tourism and wellness retreats entice 21% of international travellers. The travel market in India is expected to reach $125 billion by FY27 from a projected $75 billion in FY20. Also, the International tourist arrivals are anticipated to reach 30.5 million by 2028.
Competitive Advantage
India's diversity in history, culture, and geography provides a competitive advantage in the global tourism market. From the snowy hills of the Himalayas to the peaceful beaches of Goa, the country is a year-round destination for travellers. Offering wide range of experiences, from budget-friendly options to luxury travel, for a diverse set of tourists.
Policy Support
Government of India has encouraged travel & tourism by making suitable policies, such as the National Tourism Policy designed for promoting sustainable tourism, and several schemes providing financial support to tourism infrastructure, have raised a favourable environment for industry growth. Also, the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) has ensured electricity access to even remote tourism destinations, while making it more accessible.
Opportunities
The growth of wellness tourism, medical tourism, and eco-tourism is projected to drive the industry forward. Travel and tourism are two biggest industries in India, with a total contribution of around $199.6 billion to the country’s GDP. Also, the government has taken various steps to boost investments in facilitate spiritual tourism with many states such as Uttar Pradesh emerging tourist circuits and Uttarakhand and West Bengal improving infrastructure for pilgrims.
