India's Tourism Sector on the Rise

Significance of Indian Tourism Sector:
India, one of the oldest civilisations in the world, is a multicultural melting pot. The nation is one of the most well-liked tourist destinations globally, owing to its extensive attractions and rich heritage. From the snow-capped Himalayas in the north to the tropical rain forests in the south, India spans an area of 3,287,263 sq. km. The country’s tourism industry has grown significantly due to its rich culture and diversified ecology. India's tourism sector ranks eighth in Gross Domestic Production (GDP) contribution. The revenue of India’s tourism industry stood at US$ 247.3 billion in 2018, representing a 6.7% increase as compared to the previous year and contributing 9.2% of the entire economy. The sector was also one of the largest foreign exchange earners (FEEs).

Rise of Indian Tourism Sector:
After the COVID-19 pandemic, many reforms were implemented in India to promote tourism; these policies have significantly boosted the sector. Total FTAs in India surged by 406.6% to 2,764,975 from January-July 2022 compared to the previous year. During this period, the US was the top contributor to FTAs in India, at 25.88%, followed by Bangladesh (18.61%), the UK (10.99%) and Australia (5.16%); the US was among the top 15 source nations. In terms of foreign exchange, India's tourism sector earned US$ 6.96 billion in 2020. This is expected to increase further after the pandemic.

From January-July 2022, the Delhi Airport (among the top 15 major airports in India) accounted for the highest share in FTAs at 31.66%, followed by the Mumbai Airport (13.92%), Chennai Airport (10.41%), Haridaspur Land Check Post (8.82%) and Bengaluru Airport (6.70%). In 2021, India's domestic tourism rose by 11.05%, from 610.21 million to 677.63 million. The top states in terms of domestic visits were Tamil Nadu at 115.33 million, Uttar Pradesh at 109.70 million, Andhra Pradesh at 93.27 million and Karnataka at 81.33 million.

Growth Drivers for Tourism in India:
India has seen a sharp rise in FTAs in recent months. This increase in FTAs could be ascribed to various government policies and India-based factors. A few of the major growth factors are described below.

• Vaccination Drive:
  On 16 January 2021, India began its vaccination campaign to immunise the population against COVID-19. The programme's major goal was to deliver free vaccines to every citizen. This campaign was highly successful – almost 200 crore vaccines were distributed in the first 18 months. This aided India's economic opening and made the country a safe tourism destination.
• Medical and Wellness Tourism:
  India boasts one of the world's cheapest healthcare systems, with world-class doctors and facilities. The country’s wellness industry is well known around the world. The combination of Eastern healthcare wisdom and Western medical expertise has considerably boosted medical tourism in India. The Indian Government announced the ‘Heal in India’ and ‘Heal by India’ campaigns in May 2022. These programmes’ main aim is to further strengthen the traditional medicine industry and make India a global medical value hub. In 2020, India had 1.83 lakh FTAs for medical purposes.
• Rise in Domestic Tourism:
  India’s domestic tourism has grown considerably after the pandemic. This growth could be majorly attributed to increasing dispensable income and a rise in India's working class. The country has registered higher spending on leisure tourism compared to business spending tourism.

Government Initiatives
In recent years, the Indian Government has recognised tourism's importance in creating jobs and earning foreign exchange. Accordingly, it has taken various measures to boost domestic and international tourism, which has significantly helped the tourism sector. Some of these measures are described below.

• Swadesh Darshan Scheme
  The Swadesh Darshan scheme, a flagship programme, was launched by the Ministry of Tourism in 2014–15. The scheme aims to encourage theme-based tourism to promote, develop, and capitalise on India's tourist potential. As of March 2022, under this scheme, the Ministry of Tourism had invested Rs. 5,500 crore (US$ 687.84 million) and sanctioned over 76 projects in 31 states/union territories. Furthermore, the ministry developed tourism-related infrastructure at more than 500 tourist destinations. In April 2022, the ministry sanctioned 10 new projects under the heritage circuit theme.
• National Integrated Database of Hospitality Industry (NIDHI)
  NIDHI is an initiative towards Aatmanirbhar Bharat to use technology to empower businesses. This programme aims to understand the hospitality sector’s geographical spread, size, structure and capacity. As of 27 August 2022, a total of 45,152 accommodations were registered under this portal.
• E-tourist Visa
  The Indian Government launched this initiative in October 2014. This programme aims to simplify the process of obtaining a tourist visa for foreign nationals. This initiative has helped promote tourism in the country. In 2019, the government granted 2.36 million e-tourist visas.
• Advertising Campaigns
  The Indian Government has promoted tourism and showcased the country's rich cultural heritage to the world through its ‘Incredible India’ campaign. The campaign aims to promote tourism in India on an international scale. In recent months, the government has taken various initiatives to promote tourism. For instance, it launched the Italy edition of Incredible India Reconnect 2022, a virtual roadshow, to encourage international tourists to visit India. In May 2022, the Ministry of Tourism showcased India’s different tourism products in the Arabian travel market. 

Outlook
The Government of India has taken several infrastructural measures to promote tourism in the country; this trend is likely to continue. According to the FICCI, India's travel market is projected to expand to US$ 125 billion by 2027. The tourism and hospitality industry is among the country's largest job providers. In FY20, the tourism sector provided 79.86 million direct and indirect jobs. This trend is expected to continue and help India generate foreign exchange earnings. Moreover, India is likely to focus heavily on the North Eastern states, tapping into the huge potential of the region’s rich culture and heritage and incredible landscape. In February 2022, the Ministry of Tourism sanctioned 16 new projects in the region worth more than Rs. 1,300 crore (US$ 162.58 million); projects like these are expected to promote tourism and help generate jobs and opportunities in the future.