The Tourism and Hospitality industry is one of the largest service industries in India.
The tourism sector in India is an integral pillar of the Make in India programme. The tourism industry in India plays a role of significant economic multiplier and becomes critical since India has to grow at rapid rates and create jobs.
India offers geographical diversity, world heritage sites and niche tourism products like cruises, adventure, medical, eco-tourism, etc. Incredible India has spurred growth in Tourists Arrivals and Employment. India aims to increase cruise passenger traffic from 0.4 mn at present to 4 mn. Economic potential of Cruise tourism is expected to go up from $110 mn to $5.5 bn in the years to come.
Tourism tends to encourage the development of multiple-use infrastructure including hotels, resorts & restaurants, transport infrastructure (aviation, roads, shipping & railways) and healthcare facilities. 13th in terms of Visitor exports, WTTC (2020).
India is currently ranked 54th in World Economic Forum’s Travel & Tourism Development Index (2021).
By 2030, India is expected to be among the top five business travel market.
100% FDI in the tourism industry is allowed under automatic route.
100% FDI allowed in tourism construction projects, including the development of hotels, resorts, and recreational facilities.
In 2020, the travel & tourism industry’s contribution to the GDP was $ 121.9 bn; this is expected to reach $ 512 bn by 2028. In India, the industry’s direct contribution to the GDP is expected to record an annual growth rate of 10.35% between 2019 and 2028.
By 2028, Indian tourism and hospitality is expected to earn $ 50.9 bn as visitor exports compared with $ 28.9 bn in 2018. International tourist arrivals are expected to reach 30.5 mn by 2028.
The travel market in India is projected to reach $ 125 bn by FY27 from an estimated $ 75 bn in FY20.
In FY20, tourism sector in India accounted for 39 mn jobs, which was 8.0% of the total employment in the country. By 2029, it is expected to account for about 53 mn jobs.
It is estimated that outbound trips from India will touch 29 mn by 2025 and cross the $24 bn mark by 2024.