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. Pilgrimage travel in India is popular domestically and among the large Indian diaspora worldwide. The government has taken steps to boost investments in facilitate spiritual tourism with states like Uttar Pradesh developing tourist circuits and Uttarakhand and West Bengal enhancing infrastructure for pilgrims.
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 39th in Travel and Tourism Development Index (TTDI) in 2024 published by the World Economic Forum.
The Indian hospitality sector is expected to see a 7-9% revenue growth in FY25 and 6-8% in FY26, with pan-India premium hotel occupancy improving from 70-72% in FY25 to 72-74% in FY26. This growth is driven by strong domestic demand, including leisure, Meetings, Incentives, Conferences, and Exhibitions (MICE), and business travel (ICRA report).
Domestic air traffic rose to 14.0 million passengers in February 2025, surpassing February 2024 which stood at 12.6 million, DGCA data showed.
According to WTTC, sector's contribution to GDP was Rs. 21,15,000 crore (US$ 250.2 billion) in CY24 and could potentially grow to Rs. 43.25 crore (US$ 511.5 billion) by CY34, supporting approximately 63 million jobs.
The Indian travel and tourism industry is expected to record an annual growth at 7.1% per annum.
In WTTC’s Economic Impact 2023 report, India’s Travel and Tourism GDP contribution grew by 5.9%.
Sarovar Hotels is set to launch Nepal's largest hotel, featuring 304 rooms under the Royal Tulip brand, in the first half of CY25.
FTAs during CY24 were 9.70 million as compared to 9.20 million in CY23.
Indian airlines and hotels are progressively accommodating pet owners, experiencing a notable surge in flight and accommodation bookings, which have risen by double digits in FY25. Industry data indicates that pet-related bookings for flights and hotels have increased year-over-year by between 26% and 43%.
India, with a coastline of over 7,500 kilometres, boasts 204 lighthouses that are being transformed from traditional navigational aids into tourism attractions as part of the Government of India’s developmental vision.
India's wellness tourism industry is experiencing significant growth, valued at Rs. 1,64,027 crore (US$ 19.4 billion) and projected to reach Rs. 2,51,959 crore (US$ 29.8 billion) by 2031, with a CAGR of 6.5%.
The percentage share of Foreign Tourist Arrivals in India during December 2023 among the top 5 ports was highest at Delhi Airport (29.92%) followed by Mumbai Airport (18.46%), Haridaspur Land Check Post (7.09%), Chennai Airport (7.02%), Bengaluru Airport (6.20%). FTAs during the period January-December 2023 were 9.24 million.
The percentage share of Foreign Tourist Arrivals in India during October 2024 among the top five ports was highest at Delhi Airport (37.51%), followed by Mumbai Airport (15.15%), Haridaspur Land Check Post (7.75%), Chennai Airport (6.65%), and Bengaluru Airport (6.53%).
Tourism is the third largest foreign exchange earner for the country. FEE during the period January- February 2025 were Rs. 27,736 crore (US$ 3.28 billion).
The percentage share of foreign tourist arrivals in India during October 2024 among the top five source countries was highest from USA (19.2%), followed by UK (13.8%), Canada (7.6%), Australia (4.6%) and Malaysia (3.7%).
Cumulative FDI equity inflow in the Hotel and Tourism industry is Rs. 1,17,267 crore (US$ 18.47 billion) during the period April 2000-December 2024. This constitutes 2.57% of the total FDI inflow received across sectors.
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.
Tourism Ministry has undertaken the ‘NamasteIndia’ Campaign for encouraging international visitors to travel to India.
India’s Union Budget FY26 has allocated Rs. 2,541.06 crore (US$ 291.07 million) to boost its tourism sector, focusing on improving infrastructure, skill development, and travel facilitation through measures like developing 50 top tourist destinations, offering MUDRA loans for homestays, enhancing connectivity.
The luxury travel market in India is expected to grow at rate of 9.8% during 2024-30, reaching Rs. 10,73,785 crore (US$ 123.7 billion) by CY30.
The budget also supports sustainable tourism with the Swadesh Darshan Scheme 2.0, promotes medical tourism under "Heal in India," revitalizes spiritual tourism, and preserves heritage through the Gyan Bharatam Mission, aiming to drive employment and economic growth.
The Ministry of Tourism launched the Swadesh Darshan Scheme to develop theme-based tourist circuits, sanctioning 76 projects. Upgraded to Swadesh Darshan 2.0 (SD2.0), it targets sustainable tourism, selecting 57 destinations for development, with States/UTs preparing plans accordingly.
The Prime Minister Mr. Narendra Modi inaugurates and unveils 52 tourism sector projects valued at over Rs. 1,400 crore (US$ 168.5 million) under the Swadesh Darshan and PRASHAD Scheme.
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 Ministry of Tourism has undertaken Destination Based Skill Development training programme at various places in the country to train, local people residing near the tourist sites and destinations. Around 12,187 candidates have been trained at 145 destinations.
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 invests Rs. 86.69 crore (US$ 10 million) to enhance G6 Hospitality’s digital assets, aiming to boost direct bookings and expand its US footprint with 150+ new hotels by 2025.
In March 2024, MakeMyTrip revealed a partnership with the Department of Tourism, Madhya Pradesh, and redBus to boost tourism in the region, aiming for sustainable development and positioning Madhya Pradesh as a premier destination.
In March 2024, Indian Hotels Corporation Ltd (IHCL) has announced plans to recruit approximately 2,000-2,500 employees in the fiscal year 2025. This expansion of the workforce aligns with IHCL's ambitious plans, which include a pipeline of 85 hotels.
As of February 2024, Ayodhya is anticipated to host between 50 to 100 hotels over next 3 to 4 years. The city, acclaimed as a global religious destination, is primed for substantial development, with Taj Hotels poised to establish its fourth property in the area.
In December 2023, IHCL expanded its presence in Maharashtra as it signed a hotel in Bandra, Mumbai. The Brownfield project will be branded an IHCL- SeleQtions hotel.
In December 2023, TAJ won the ‘World’s finest luxury grand palaces’ award at the ‘101 Best Executive Summit’ in Germany.
In November 2023, Indian Hotels Company (IHCL) announced the opening of Ginger Mumbai, Airport. The 371 Keys flagship Ginger hotel, strategically located near the domestic airport will introduce the brand’s lean luxe design and service philosophy of offering a vibrant, contemporary, and seamless hospitality experience to its guests.
In September 2023, Mahindra Holidays & Resorts (MHRIL) signed an MOU with the Government of Uttarakhand (UK) to invest Rs. 1,000 crore (US$ 120.16 million) and build 4-5 large marquee resorts over the next few years in Uttarakhand.
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 travellers 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.
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.
