India’s rising middle class joins the Rs. 12,84,60,000 crore (US$ 15 trillion) global travel opportunity
- IBEF
- July 3, 2025
India’s expanding middle class and young, digitally engaged population are positioning the country as a key driver of global leisure travel growth, according to a new report by Boston Consulting Group (BCG). The report estimates that global leisure travel spending will triple from Rs. 4,28,20,000 crore (US$ 5 trillion) in 2024 to Rs. 12,84,60,000 crore (US$ 15 trillion) by 2040, outpacing the pharmaceutical and fashion industries. India, along with China and Saudi Arabia, is expected to lead this surge as rising incomes, a shift from material goods to experiences, and increased mobility fuel demand. For Indian travellers, domestic, regional, and international overnights are projected to grow at annual rates of 3%, 4%, and 6%, respectively, while corresponding expenditure is expected to rise by 12%, 8%, and 10%. Millennials and Gen-Z in India are spearheading this trend, with high intent to travel more and spend more, while Gen-Xers continue to be a notable segment.
Globally, leisure travel remains centred around beaches, cities, and nature, but preferences are evolving. Purpose-driven experiences like wellness retreats, spiritual tourism, and food-focused itineraries, especially in Asia, are gaining popularity. Notably, 70% of emerging market travellers now combine leisure with business trips. While traditional motivations such as relaxation, exploration, and family time remain dominant, travellers increasingly seek meaning and alignment with personal lifestyles. Despite external risks like geopolitical tensions and immigration policies, BCG expects the long-term outlook for the leisure travel industry to remain robust, driven by sustained demand in emerging markets. Wanderlust, as BCG notes, is proving to be a powerful, resilient global force.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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