India’s inbound tourism sector is gradually recovering, but it remains below the pre-pandemic peak of 10.93 million foreign tourist arrivals recorded in 2019. This slow recovery reflects persistent challenges such as global travel hesitancy, alongside domestic infrastructural limitations and environmental constraints.
According to the Ministry of Tourism, India recorded 9.95 million foreign tourist arrivals in 2024, which is still lower than pre-COVID levels. In 2025, around 5.6 million tourists arrived up to August, compared to 6.3 million during the same period in 2024, indicating a modest slowdown in growth.
Growth Potential and Projections
Despite short-term challenges, India’s tourism sector demonstrates strong long-term potential:
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The tourism market in India is projected to reach US$125 billion by FY 2027.
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The sector is expected to contribute US$523.6 billion to India’s GDP by 2034.
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International tourist arrivals are projected to reach 30.5 million by 2028.
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India ranked 39th globally in the 2024 Travel & Tourism Development Index of the World Economic Forum (WEF), performing strongly in natural and cultural resources.
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According to the World Travel & Tourism Council (WTTC), by 2035, the sector could contribute ₹42 trillion to GDP and support 64 million jobs.
These projections underline tourism’s role as a key driver of economic growth, provided policy reforms and infrastructure development keep pace with demand.
Tourism as an Economic Engine
Tourism functions as a powerful multiplier for the Indian economy by:
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Generating employment across skilled and unskilled sectors, including hospitality, transport, and services.
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Supporting MSMEs in areas such as food processing, handicrafts, logistics, and accommodation.
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Promoting cultural preservation by monetizing heritage, traditions, and local art forms.
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Enhancing India’s soft power, shaping global perceptions through cultural exchange and people-to-people contact.
Evolution of the Indian Tourism Sector
India’s tourism sector has evolved through distinct phases, shaped by policy reforms, infrastructure development, technological change, and global trends.
Pre-1990: Early Foundations
The initial phase focused on establishing a policy framework for tourism development.
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1982: The Government of India announced the National Tourism Policy, laying the institutional foundation for organized tourism development.
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1988: A comprehensive tourism development plan was formulated to promote tourism across diverse regions of the country.
1990–2000: Tourism Emerges as an Industry
During this period, tourism began to be recognised as a significant economic activity.
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Industry Status: Several states formally declared tourism as an industry, enabling access to incentives and financing.
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Public-Private Partnerships (PPP): Greater emphasis was placed on PPP models to expand tourism infrastructure.
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Hotel Industry Growth: Supportive policies facilitated the expansion of the hospitality sector, especially in urban and tourist hubs.
2000–2005: Infrastructure and Technological Expansion
This phase marked a shift toward infrastructure-led growth and early digital adoption.
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2002: A new National Tourism Policy was launched, prioritising infrastructure development, destination diversification, and sustainable tourism.
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Technological Advancements: The emergence of online travel portals and low-cost carrier airlines significantly boosted domestic tourism and improved accessibility.
2015 Onwards: Global Recognition and Digital Innovation
India’s tourism strategy became more globally oriented and technology-driven.
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Marketing Initiatives: The government launched high-impact branding campaigns to position India as a leading global tourism destination.
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e-Tourist Visa: Introduced in 2014, the e-Visa system simplified entry procedures. By 2018, 2.93 million foreign tourists arrived under this facility, registering a 23.6% growth.
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Global Standing: In 2018, India achieved 3rd position in global tourism growth rankings, reflecting rising international interest.
Post-Pandemic Phase: Revival and Adaptation
The COVID-19 pandemic disrupted tourism but also reshaped consumer behaviour.
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Revenge Travel: A surge in pent-up demand led to the emergence of “revenge travel”, particularly in domestic tourism.
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Government Support: Active policy measures and promotional initiatives were undertaken to revive tourism and support economic recovery.
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Hotel Industry Response: Hotels focused on increasing occupancy through competitive pricing and flexible booking policies.
Concerns & Issues with India’s Tourism Sector
Despite its potential, India’s tourism sector faces several structural, financial, and strategic challenges:
1. Budgetary Constraints & Promotion Cuts
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Union Budget 2025–26 allocated ₹2,541 crore to tourism, but overseas promotion funding dropped sharply from ₹33 crore to ₹3.07 crore.
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Reduced global marketing limits India’s visibility in key international markets, particularly when competitors are investing heavily post-pandemic.
2. Spending vs. Visitor Numbers
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WTTC (2024): International tourist spending in India was ₹3.1 trillion, but arrivals remain below the 2019 pre-pandemic peak of 10.93 million.
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India attracts higher-value tourists, but overall footfall lags, indicating untapped potential.
3. Persistent Structural Bottlenecks
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Visa issues: Slow eVisa processing and limited visa-on-arrival access.
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Connectivity gaps: Poor air connectivity from major source markets; inadequate last-mile transport.
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Infrastructure deficits: Low-quality lodging, sanitation issues, and limited multilingual support for foreign tourists.
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Fragmented promotion: Multiple agencies operate independently, diluting global branding efforts.
4. Regional Concentration
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Tourism is unevenly distributed:
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North Zone: 35.62% of arrivals
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South Zone: 26.27%
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West & Central: 19.94%
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East: 16.60%
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Northeast: 1.58%
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Over-reliance on a few regions limits inclusive growth and development of lesser-known destinations.
5. Global Competitiveness Gap
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Despite premiumization and niche tourism promotion, India’s inbound arrivals remain far below competitors like Thailand, Malaysia, and even Sri Lanka.
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High spending tourists are concentrated in limited regions, reducing broad-based economic impact.
How India Can Attract High-Value Tourists
India has immense potential to attract high-value tourists by offering premium experiences, world-class infrastructure, and seamless travel.
1. Simplify Entry and Travel
Expanding Visa Access: India should expand the e-Tourist Visa and visa-on-arrival facilities to more countries, ensuring that the process is faster, cheaper, and hassle-free.
Seamless Travel Experience: High-value tourists prefer efficient airports, quick immigration, and multilingual support. Improving these aspects can make India a more attractive destination.
2. Promote Unique and Premium Experiences
Niche Tourism: India can offer Ayurveda retreats, luxury wildlife safaris, spiritual wellness tours, high-end cultural festivals, and river cruises.
Example – Lakshadweep: With its pristine beaches, coral reefs, and clear waters, Lakshadweep has great potential for high-end, sustainable tourism.
Influencer Marketing: Inviting travel influencers, bloggers, and opinion leaders to experience luxury tourism can create global awareness and aspiration.
3. Showcase Destination Diversity Through Circuits
Premium Tourism Circuits: Programs like Swadesh Darshan and PRASAD can help package India’s rich diversity into multi-day immersive journeys.
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Buddhist Circuit: Attracts international pilgrims.
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Luxury Himalayan Circuit: Combines adventure and wellness tourism.
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Spiritual Circuits: Promotes heritage and culture through upgraded PRASAD sites.
Benefits: These circuits encourage longer stays and higher tourist spending.
4. Develop World-Class Infrastructure and Connectivity
Destination Development: Initiatives to develop 50 top tourist destinations in partnership with states will provide premium facilities and luxury accommodations.
Private Investment: Classifying hotels under the Infrastructure Harmonized Master List (HML) encourages private investment in high-end hospitality.
Seamless Connectivity: Improved transport networks and last-mile connectivity are crucial for high-value tourism.
5. Upgrade Service Quality
Hospitality Training: Focus on training manpower, including chefs, guides, and service staff, to meet international standards.
Premium Accommodations: Encourage the development of boutique hotels, luxury resorts, heritage stays, and high-end cruises to cater to affluent tourists.
6. Promote Medical and Wellness Tourism
Heal in India Initiative: Combining modern medicine with Ayurveda, Yoga, and wellness treatments can position India as a global healthcare and wellness hub.
Market Potential: Medical Value Travel is projected to reach USD 13.42 billion by 2026, highlighting its potential for attracting high-value international visitors.
7. Enhance Knowledge and Cultural Tourism
Heritage Preservation: Initiatives like the Gyan Bharatam Mission digitize manuscripts and preserve India’s cultural heritage.
Target Audience: Attracts scholars, researchers, and global heritage enthusiasts, adding a premium dimension to cultural tourism.
8. Strengthen Safety and Comfort
Tourist Support Services: Establish 24×7 tourist helplines, dedicated tourist police, multilingual guides, and welcome booklets.
Trust Building: Safety and comfort are key for high-value tourists, who prioritize secure and hassle-free travel experiences.
Government Efforts & Initiatives Supporting India’s Tourism Sector
India’s tourism sector plays a critical role in economic growth, employment generation, and cultural preservation. The government has undertaken multiple initiatives to revive and strengthen tourism, improve infrastructure and services, and promote India as a premium destination globally.
1. Destination Development and Infrastructure
Union Budget 2025–26 allocated funds to develop 50 tourist destinations in partnership with states through a ‘challenge mode’. This ensures world-class infrastructure, improved connectivity, and enhanced visitor experience.
Swadesh Darshan 2.0 promotes sustainable, theme-based tourism circuits. Major themes include Buddhist, Coastal, Desert, Eco, Heritage, Himalayan, and Wildlife circuits. The program also supports Village Tourism Development, encouraging homestays and local experiences to provide sustainable livelihoods.
The PRASHAD Scheme focuses on the holistic development of pilgrimage sites, fostering spiritual tourism while preserving cultural heritage.
2. Promotion and Marketing Initiatives
Dekho Apna Desh encourages domestic tourism, highlighting lesser-known destinations and fostering pride in India’s cultural heritage.
The Incredible India 2.0 Campaign seeks to revamp India’s global image using digital marketing and immersive technologies such as AR/VR. It also implements tailored campaigns for key international markets.
Through the Adopt a Heritage Project, the government collaborates with corporate entities to maintain monuments, improve amenities, and establish interpretation centers for tourists.
3. Capacity Building and Skill Development
The Incredible India Tourist Facilitator Certification (IITFC) is a digital platform that trains and certifies professional tourist facilitators, improving service quality and tourist satisfaction.
The Capacity Building for Service Providers (CBSP) initiative offers training programs for guides, drivers, and hospitality staff, enhancing overall visitor experience.
The ‘Heal in India’ initiative promotes medical and wellness tourism by combining modern healthcare with Ayurveda, Yoga, and holistic treatments. It also streamlines visa processes and fosters private sector partnerships.
4. Promotion of High-Value and Niche Tourism
India actively promotes high-value tourism sectors such as MICE (Meetings, Incentives, Conferences, and Exhibitions). The India MICE Digital Catalogue showcases top conference facilities across cities and involves collaboration with FICCI and state tourism departments.
The National Integrated Database of Hospitality Industry (NIDHI) registers over 45,000 hotels to facilitate ease of doing business and integrates with the SAATHI initiative for hygiene and safety certification.
5. Strategic Priorities for a Stronger Tourism Comeback
To achieve sustainable growth in tourism, the government can focus on the following strategic priorities:
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Revive ‘Incredible India’ through modern, digital-first global campaigns targeting markets like the US, Europe, and East Asia.
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Simplify and expand eVisa access to attract a larger pool of international tourists.
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Enhance air connectivity to Tier-II cities such as Kochi, Goa, Jaipur, and Guwahati.
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Promote integrated circuits combining culture, wellness, and spirituality, encouraging longer stays and higher spending.
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Invest in cleanliness, accessibility, and hospitality training to improve the overall visitor experience.
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Strengthen public-private partnerships (PPPs) to ensure high-quality infrastructure and service delivery.
Conclusion
Through initiatives like Swadesh Darshan, PRASHAD, Incredible India 2.0, and Heal in India, the government aims to position India as a premium tourism destination. The focus on world-class infrastructure, skill development, niche tourism, and high-value experiences ensures that India can attract both domestic and international travelers, contribute to economic growth, and preserve its rich cultural and natural heritage.