India’s Tourism Sector on the Rise: Growth, Innovation, and Future Prospects

Last Updated:January 26, 2025, 23:31 IST

With India securing the 39th position in the World Economic Forum’s Travel & Tourism Development Index, the future looks promising for the industry.

As India celebrated National Tourism Day on January 25, 2025, the collective focus is on fostering sustainable tourism, embracing digital transformation, and enhancing infrastructure to create unforgettable travel experiences

India’s tourism sector has reached unprecedented heights in 2024, contributing a remarkable $199.6 billion to the GDP, reflecting a surge in both inbound and outbound tourism. With India securing the 39th position in the World Economic Forum’s Travel & Tourism Development Index, the future looks promising for the industry.

Rikant Pittie, CEO and Co-Founder of EaseMyTrip, expresses his pride in the sector’s growth, stating, “We are proud to see how the Indian travel industry has evolved over the years. With the government launching initiatives like PRASHAD, Dekho Apna Desh, Incredible India, and the E-visa scheme, we are progressing towards digitization, exploring hidden retreats, and boosting industry growth. Furthermore, with the allocation of Rs 2,479 crore for the tourism sector in FY25, our infrastructure and travel experiences have significantly improved.”

Looking ahead, Pittie envisions a new era for Indian tourism, marked by increased global involvement, enhanced heritage preservation, and advanced infrastructure with high-tech digital assets. He affirms his firm’s commitment to empowering the industry’s growth and encouraging citizens to embrace sustainable tourism, digitization, and economic development.

India’s Tourism Sector: A Driver of Economic Growth

According to Balasubramanian A, Senior VP and Business Head, TeamLease, the Indian tourism sector has shown remarkable resilience, contributing $11.10 trillion to the GDP in 2024—10% higher than pre-pandemic levels. Employment in the sector has seen significant growth, with 43 million jobs created, marking an 8% increase compared to 2019. Balasubramanian shares,

“The sector is expected to expand further in 2025, potentially adding 6.1 million jobs by 2034. By 2025, around 31% of jobs will be direct, including roles such as tour guides, hotel staff, and tour operators, while the remaining 69% will be indirect, spanning supply chain management, logistics, IT support, and landscape maintenance.”

Despite this progress, challenges such as workforce shortages in hospitality and technology, lack of consistent training, and uneven regional development persist. To address these issues, government initiatives like Swadesh Darshan 2.0 and Dekho Apna Desh are focused on improving infrastructure, connectivity, and niche tourism, with airport modernization, rail tourism expansion, and AI-driven e-tourism services paving the way for sustainable growth.

Technology: Transforming Travel Experiences

With rapid technological advancements, India’s tourism sector is poised to provide a seamless experience for travelers. Suresh Khadakbhavi, CEO, Digi Yatra Foundation, highlights the critical role of technology, stating, “The travel and tourism industry continues to be a critical driver of India’s economic growth, contributing approximately $178 billion to the GDP. The travel market is projected to reach $125 billion by FY 2027, with international tourist arrivals set to grow significantly. The government’s focus on fostering innovation and improving ease of doing business will further strengthen the sector.”

Khadakbhavi underscores how initiatives like Digi Yatra are leveraging cloud solutions, SaaS technologies, and digital platforms to transform the traveler experience. With over 1,500 tourism startups offering technology-driven solutions, there is an urgent need for policies that encourage tech adoption while ensuring privacy and decentralization.

Additionally, he emphasizes the importance of reforms such as granting infrastructure status to smaller projects, simplifying licensing processes, and rationalizing GST structures, which would encourage investment, support entrepreneurs, and strengthen India’s position as a global tourism leader.

Unlocking Tourism’s Potential through Skill Development

With India’s tourism economy poised for exponential growth, the need for a skilled workforce has become more crucial than ever. Jaideep Kewalramani, COO and Head of Employability Business, TeamLease Edtech, highlights the diverse opportunities within the sector, stating,

“Tourism in India is multi-faceted—ranging from ancient sites and historic monuments to wellness, healthcare, and destination events. The culture of Atithi Devo Bhava creates a magical experience for visitors, making India a unique destination. The tourism economy contributed approximately $200 billion and is expected to double in the coming years, potentially contributing 5-7% of GDP over the next few decades.”

Kewalramani emphasizes the role of work-integrated learning programs in empowering youth to pursue careers in tourism while gaining hands-on experience in the hospitality industry. Entry-level jobs in the sector offer salaries ranging from INR 3 to 8 lakh per annum, depending on skills and education. He asserts that continued investment in education and training will further boost employment opportunities and industry growth.

The Road Ahead: Sustainability and Innovation

As India celebrated National Tourism Day on January 25, 2025, the collective focus is on fostering sustainable tourism, embracing digital transformation, and enhancing infrastructure to create unforgettable travel experiences. Industry leaders are optimistic about the future, with government support, technological innovation, and a skilled workforce driving India’s tourism sector to new heights.

With a shared vision, industry stakeholders, entrepreneurs, and travelers alike can contribute to India’s journey towards becoming a global leader in tourism, ensuring its rich heritage and diverse offerings continue to inspire the world.

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