Tourism & Hospitality Industry in India

India's tourism and hospitality sector is expected to yield revenue exceeding US$ 59 billion by 2028. Moreover, Foreign Tourist Arrivals (FTAs) are forecasted to hit 30.5 million by the same year.

Advantage India

Robust
Demand

*India's tourism and hospitality sector is expected to yield revenue exceeding Rs. 5,12,356 crore (US$ 59 billion) by 2028. Moreover, Foreign Tourist Arrivals (FTAs) are forecasted to hit 30.5 million by the same year.

*According to the Tourism Minister of India, country’s tourism industry is expected to grow with a Compound Annual Growth Rate (CAGR) of 20% in the next couple of decades, driven by the rise in India’s middle-income group and disposable income.

*The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.

*International tourist arrivals are expected to reach 30.5 million by 2028.

Robust Demand

Attractive
Opportunities

*India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure.

*Travel and tourism are two of the largest industries in India, with a total contribution of about US$ 199.6 billion to the country’s GDP.

*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.​

Attractive Opportunities

Policy
Support

*India’s Union Budget 2025-26 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, and introducing e-visa facilities.

*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 has approved 46 projects under its PRASHAD Scheme, including three in Andhra Pradesh. Additionally, 29 sites have been identified for development under this scheme, with two located in Andhra Pradesh.​

Policy Support

Diverse
Attractions

*India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure.​​

*According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth Rs. 15.7 lakh crore (US$ 189 billion) in 2022.​

*According to WTTC, over the next decade, India’s Travel & Tourism’s GDP is expected to grow at an average of 7.1% annually.

*With recent developments in the hospitality infrastructure, the segment envisages directly contributing Rs. 2,60,52,000 crore (US$ 3 trillion) to the country’s GDP by 2047.

*Pilgrimage travel in India is gaining popularity domestically and among the large Indian diaspora worldwide.

Diverse Attractions
Last updated: Apr, 2025

States with Largest Domestic Tourist Arrivals in 2021

  • Tamil Nadu
  • Uttar Pradesh
  • Andhra Pradesh
  • Karnataka
  • Maharashtra
  • Telangana
Tourist Spots in India

Posters

MORE
ANCIENT AND RICH

ANCIENT AND RICH

Approximately 8000 years old, India is the world's oldest surviving civilsation.

IBEF Campaigns

MORE
Discover India 2024

Discover India 2024

APEDA is organizing participation in SIAL Paris 2024 scheduled to be held f...

Aatmanirbhar Bharat Utsav 2024

Aatmanirbhar Bharat Utsav 2024

Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...

Case Studies

MORE

Unlocking Play: Evolution of India’s Toy Sector

Unlocking Play: Evolution of India’s Toy Sector

The history of toy-making in India is extensive and varied, spanning thousands of years. Terracotta figurines, wheeled carts, and animal-shaped toys t...

Shaping the Future: How PM Ujjwala Yojana is Addressing India's Energy Needs

Shaping the Future: How PM Ujjwala Yojana is Addressing India's Energy Needs

India, with its large population and diverse socio-economic conditions, has long struggled to ensure clean and affordable energy access for all, espec...

India's Electronics Sector: Pathway to Global Value Chain Integration

India's Electronics Sector: Pathway to Global Value Chain Integration

Electronics manufacturing plays an essential role in the global supply chain, fuelling everything from electric cars on the road to smartphones in our...

IBEF BLOG

MORE
Seaweed and the Blue Economy: India's Path to Coastal Prosperity
13 Jun 2025

Seaweed and the Blue Economy: India's Path to Coastal Prosperity

Seaweed, a highly versatile marine resource, holds significant potential fo...

From Fields to Fuel: The Indian Sugar Industry’s Role in Advancing Ethanol Blending
12 Jun 2025

From Fields to Fuel: The Indian Sugar Industry’s Role in Advancing Ethanol Blending

The Indian sugar industry is undergoing a transformation as it embraces eth...

Revolutionising India's Edible Oil Sector: Pathways to Sustainable Growth
11 Jun 2025

Revolutionising India's Edible Oil Sector: Pathways to Sustainable Growth

India ranks fourth in the world after the United States, China, and Brazil ...

Partners
Loading...