India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MI CE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists. In his Independence speech from Red Fort, Prime Minister Mr. Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022 to promote tourism. India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum. India is the most digitally advanced traveller nation in terms of digital tools being used for planning, booking, and experiencing a journey. India’s rising middle class and increasing disposable income have supported the growth of domestic and outbound tourism.
India has been ranked 54th in Travel and Tourism Development Index (TTDI) in 2021 published by the World Economic Forum and contributed ~US$ 178 billion to the country’s GDP.
The Indian travel and tourism industry is expected to record an annual growth of 6.7% per annum and achieve 9.2% of GDP with US$ 488 billion.
In 2020, the travel & tourism industry’s contribution to the GDP was US$ 121.9 billion. In 2019, it contributed US$ 212.8 billion to the GDP. In 2022, the contribution of the travel and tourism industry to India’s economy stood at US$ 15.7 trillion.
In WTTC’s Economic Impact 2022 report, India’s Travel and Tourism GDP contribution grew by 5.8%, which was the sixth-highest after the US, China, Germany, Japan and Italy.
Tourism is the third largest foreign exchange earner for the country.
As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in March 2023 were 7,95,827 as compared to 3,42,308 in March 2022 with a positive growth rate of 132.5%.
FTAs during the period January-March 2023 were 25,29,766 as compared to 7,84,750 in January-March, 2022 and 31,79,792 in January-March 2019 registering a growth of 222.4% and -20.4% with respect to 2023 and 2019 respectively.
The percentage share of Foreign Tourist Arrivals in India during March 2023 among the top 15 ports was highest at Delhi Airport (31.72%) followed by Mumbai Airport (13.29%), Haridaspur Land Check Post (12.31%), Chennai Airport (7.91%), Bengaluru Airport (5.24%), Kolkata Airport (3.16%), Cochin Airport (2.98%), Hyderabad Airport (2.87%), Ghojadanga Land Check Post (2.14%), Dabolim (Goa) Airport (1.96%), Ahmedabad Airport (1.79%), Agartala Land Check Post (1.77%), Amritsar Airport (1.44%), Changrabandha Land Check Post (1.34%), and Sonauli Land Check Post (1.34%).
The G-20 Presidency will give India’s tourism sector an unparalleled opportunity to highlight India’s tourism offerings and share India’s tourism success stories on a global stage
By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.
Tourism Ministry has undertaken the ‘NamasteIndia’ Campaign for encouraging international visitors to travel to India.
In the Union Budget 2023-24, US$ 290.4 million has been allocated to the Ministry of Tourism. Under the Union Budget 2023-24, an outlay of US$ 170.85 million has been allocated for the Swadesh Darshan Scheme to develop a complete package of 50 tourist destinations for providing a wholesome tourism experience by facilitating physical, digital, and virtual connectivity, availability of tourist guides and tourist security.
Ministry has sanctioned 76 projects under the scheme since its inception under 13 themes for a revised sanctioned cost of US$ 668.95 million and has released US$ 534.9 million (till December 31, 2021).
Under Budget 2023-24, the Government has allocated US$ 30.25 million for the development of tourist circuits under PRASHAD. Since its launch in January 2015 and Ministry has sanctioned 37 projects in 24 states with estimated expenditure of US$ 146.4 million and a cumulative amount of US$ 91.6 million has been released for these projects. 68 destinations/sites have been identified in 30 States/UTs for development under the PRASHAD Scheme as on March 31, 2022.
Ministry of Tourism has partnered with the Quality Council of India (QCI), to assist the Hospitality Industry in their preparedness to continue operations safely and mitigate risks arising out of the COVID-19 pandemic through an initiative called SAATHI (System for Assessment, Awareness and Training for Hospitality Industry). A hotel/unit goes through the SAATHI framework and agrees to fully follow the requirements wherever applicable possible, and a self-certification is issued. Self-certified hotels/units attend webinars to clarify doubts through live interactions. If Hotel/unit desires, they may undertake a site assessment based on the SAATHI framework through QCI-accredited agencies and an assessment report with opportunities for improvement is shared with the assessed unit.
In June 2022, the Ministry of Tourism along with the Associations of Indian Universities (AIU) initiated a 12-episode webinar series under ‘Azadi Ka Amrut Mahotsav’ (AKAM) to engage and expose young minds of our country to the rich and diverse heritage of the country.
Accor, a French hospitality major will expand its India portfolio by adding nine additional hotels in the mid-scale and economy categories, bringing the total number of hotels to 54 in India.
The Medical Tourism sector is expected to increase at a CAGR of 21.1% from 2020-27.
The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.
The Ministry of Tourism has approved 16 projects for over Rs. 1,300 crore (US$ 171.2 million) in India's North-East.
The Ministry of Road Transport and Highways has introduced a new scheme called ‘All India Tourist Vehicles Authorisation and Permit Rules, 2021’, in which a tourist vehicle operator can register online for All India Tourist Authorisation/Permit. This permit will be issued within 30 days of submitting the application.
The United Nations World Tourism Organisation selected Pochampally in Telangana as one of the best tourism villages in November 2021.
OYO estimates India to present a US$ 26 billion opportunity by 2030. To further strengthen its position in India, in October 2021, the company filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) of Rs. 8,430 crore (US$ 1.2 billion) with the Securities and Exchange Board of India (SEBI).
The Government of India launched the e -Visa on November 27, 2014 and subsequently e-Tourist Visa was initially introduced for 46 countries.
The e-Tourist Visa is part of t e-Visa facility which includes an e-Business Visa, e-Conference Visa, e-Medical Visa, and e-Medical Attendant Visa.
In 2021, the Government of India announced 40,000 e-tourist visas out of 500,000 free regular visas to the tourist, to ensure a geographical spread of the incentive to important source markets globally.
In December 2019, e-visa facility was offered to around 170 countries.
The facility for e-tourist visa has been extended to passengers arriving at these ports of Mumbai, Mormugao, Mangalore, Kochi, and Chennai and immigration counters have been set up at five major ports visited by cruise ships, thus facilitating the cruise passenger arrivals at the seaports.
‘Medical Visa’ has been introduced, which can be given for specific purpose to foreign travelers coming to India for medical treatment. ‘E-Medical Visa’ has also been introduced for 166 countries.
India has invested heavily in AYUSH and is in a unique position to attract medical value travellers for a cure through AYUSH and for enhancing wellness.
India is ranked 10th out of the top 46 countries in the world in the Medical Tourism Index 2020-21 by Medical Tourism Association. The Indian medical tourism industry was estimated to be valued at US$ 7,417 million in 2022 and it is projected to surpass US$ 42,237.47 million by 2032.
Cruise tourism is one of the most vibrant and fast-growing sectors of the leisure and travel industry. The Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31.
Moreover, India is looking to take advantage of its 7,500 km coastline to tap the growth potential of the cruise tourism segment.
Ministry of Tourism is funding the development of cruise terminals, lighthouses, and other tourist infrastructure in several coastal locations to promote domestic and international cruise terminals at selected ports by 2023.
Ministry of Tourism has also sanctioned US$ 27.7 million for various projects towards the development of Cruise Terminals and related infrastructure in different States at the major ports under the scheme for ‘Assistance to Central Agencies for Tourism Infrastructure Development.
National strategy and roadmap for the development of rural tourism aims at prioritization of rural tourism at the national level.
This can benefit the local community economically and socially and facilitate interaction between tourists and locals for a mutually enriching experience.
India has rich natural and eco-tourism resources ranging from pristine forests, the snow-clad Himalayas, montane grasslands, golden and silver deserts, rivers, lakes, wetlands, mangroves, beaches, volcanoes and corals, housing tremendous biodiversity.
In 2021, the Ministry of Forest, Environment and Climate Change issued “Ecotourism guidelines in and around protected areas 2021” based on the key recommendations of the Tiger Task Force (2005), provisions contained in the Wildlife (Protection) Act 1972, Scheduled Tribes and Other Forest Dwellers (Recognition of Forest Rights) Act 2006.
