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