Trade Analytics
Tourism and Hospitality
The World Travel and Tourism Council forecasts Indian tourism sector to grow at annual average growth rate of 7 per cent over the next ten years.

Indian Tourism and Hospitality Industry Analysis

Latest update: February, 2018

  • Tourism in India accounts for 9.6 per cent of the GDP and is the 3rd largest foreign exchange earner for the country
  • The tourism and hospitality sector’s direct contribution to GDP in 2016, was US$ 71.53 billion
  • During 2006–17E, direct contribution of tourism and hospitality to GDP is expected to register a CAGR of 14.05 per cent
  • The direct contribution of travel and tourism to GDP is expected to reach US$ 147.96 billion by 2027


Notes: CAGR – Compound Annual Growth Rate, E - Estimates, GDP stands for Gross Domestic Product,
Source: World Travel and Tourism Council’s Economic Impact 2017, News Articles

  • In 2016, foreign tourist arrival in India stood at 8.8 million.
  • By 2025, foreign tourist arrivals in India is expected to reach 15.3 million, according to the World Tourism Organisation
  • In December 2016, over 1,62,250 foreign tourists arrived on e-Tourist Visa, in comparison with 103,617 foreign tourists in December 2015, registering a growth of 56.6 per cent over the previous year
  • As of December 2016, 8.8 million tourists have visited India, mostly from UK, US and Bangladesh. This has been due to flexible government policies, developed rail and road infrastructure, ease in availability of e-visas to foreign tourists.
  • The number of Foreign Tourist Arrivals (FTAs) in April 2017 were 7.40 lakh as compared to FTAs of 5.99 lakh in April 2016 and 5.42 lakh in April, 2015.


Source: World Travel and Tourism Council’s Economic Impact 2015, Ministry of Tourism



Last Updated: February, 2018

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism. India has been recognised as a destination for spiritual tourism for domestic and international tourists.

Total contribution by travel and tourism sector to India’s GDP is expected to increase from US$ 136.3 billion in 2015 to US$ 275.2 billion in 2025. India ranked third among 184 countries in terms of travel & tourism’s total contribution to GDP in 2016. Travel and tourism is the third largest foreign exchange earner for India. A sum of US$ 27.693 billion was earned under foreign exchange through tourism during calendar year 2017. The employment in the sector is expected to rise to 46.42 million by 2026. During calendar year 2017, 10.177 million foreign tourists have arrived in India. The Government of India has set a target of 20 million foreign tourist arrivals (FTAs) by 2020 and double the foreign exchange earnings as well.

The launch of several branding and marketing initiatives by the Government of India such as ‘Incredible India!’ and ‘Athiti Devo Bhava’ has provided a focused impetus to growth. The Indian government has also released a fresh category of visa - the medical visa or M visa, to encourage medical tourism in the country. Incredible India 2.0 campaign was launched in September 2017.

The Government has also been making serious efforts to boost investments in tourism sector. In the hotel and tourism sector, 100 per cent FDI is allowed through the automatic route. A five-year tax holiday has been offered for 2, 3 and 4 star category hotels located around UNESCO World Heritage sites (except Delhi and Mumbai). Total FDI received by Indian hotel & tourism sector was US$ 10.6 billion between April 2000 and September 2017.

Sectoral Presentation (February, 2018)

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