tourism and economic development in india

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India Organic Biofach 2022

Gulfood dubai 2023, tourism and hospitality, indian tourism and hospitality industry analysis, the tourism sector is projected to contribute us$ 250 billion to the country’s gdp by 2030, generating employment for 137 million individuals., advantage india, robust demand.

* The Medical Tourism sector is predicted to increase at a CAGR of 21.1% from 2020-27.

* 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.

* According to WTTC, over the next decade, India’s Travel & Tourism’s GDP is expected to grow at an average of 7.8% annually.

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$ 178 billion to the country’s GDP.

* The country’s big coastline is dotted with attractive beaches.

Policy support

* US$ 2.1 billion is allocated to Ministry of Tourism in budget 2023-24 as the sector holds huge opportunities for jobs and entrepreneurship for youth. Rs. 2,400 crore (US$ 289.89 million) allocated to the Ministry of Tourism as the sector holds huge opportunities for jobs and entrepreneurship for youth.

* Under the Union Budget 2023-24, an outlay of US$ 170.85 million has been allocated for the Swadesh Darshan Scheme.

* 68 destinations/sites have been identified in 30 States/UTs for development under the PRASHAD Scheme as on March 31, 2022.

Diverse Attractions

* According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth Rs. 15.9 trillion (US$ 191.25 billion) in 2022.

Tourism and Hospitality Industry Report

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MI CE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists. In his Independence speech from Red Fort, Prime Minister Mr.

Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022 to promote tourism. India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum. India is the most digitally advanced traveller nation in terms of digital tools being used for planning, booking, and experiencing a journey. India’s rising middle class and increasing disposable income have supported the growth of domestic and outbound tourism.

India has been ranked 54th in Travel and Tourism Development Index (TTDI) in 2021 published by the World Economic Forum.

According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth Rs. 15.9 trillion (US$ 191.25 billion) in 2022.

The Indian travel and tourism industry is expected to record an annual growth of 6.7% per annum and achieve 9.2% of GDP with US$ 488 billion. According to WTTC, over the next decade, India’s Travel & Tourism GDP is expected to grow at an average of 7.8% annually.

In WTTC’s Economic Impact 2022 report, India’s Travel and Tourism GDP contribution grew by 5.8%, which was the sixth-highest after the US, China, Germany, Japan and Italy.

In 2021, the travel & tourism industry’s contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028. By 2029, it is expected to account for about 53 million jobs.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in October 2023 were 8,11,411. FTAs during the period January-October 2023 were 72,43,680 as compared to 46,55,160 in January-October 2022.

The percentage share of Foreign Tourist Arrivals in India during October 2023 among the top 5 ports was highest at Delhi Airport (34.74%) followed by Mumbai Airport (14.75%), Haridaspur Land Check Post (9.03%), Chennai Airport (7.05%), Bengaluru Airport (5.71%). FTAs during the period January-September 2023 were 6.43 million.

The percentage share of Foreign Tourist Arrivals in India during October 2023 among the top 5 source countries was highest from Bangladesh (21.41%), followed by USA (15.65%), UK (11.27%), Australia (4.38%) and Canada (3.81%).

In 2023-24* (January-October), 24.97% of foreign tourists visited for Indian Diaspora which marks 72,43,680 foreigners.

Tourism is the third largest foreign exchange earner for the country. FEE during the period January-October 2023 were US$ 22.32 billion.

Domestic visitor spending increased by 20.4% in 2022, only 14.1% below 2019. International visitor spending rose by 81.9% in 2022, but still 40.4% behind 2019 numbers.

Cumulative FDI equity inflow in the Hotel and Tourism industry is US$ 17.29 billion during the period April 2000-September 2023. This constitutes 2.60% of the total FDI inflow received across sectors.

The G-20 Presidency will give India’s tourism sector an unparalleled opportunity to highlight India’s tourism offerings and share India’s tourism success stories on a global stage

By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.

Tourism Ministry has undertaken the ‘NamasteIndia’ Campaign for encouraging international visitors to travel to India.

In the Union Budget 2023-24, US$ 290.4 million has been allocated to the Ministry of Tourism. Under the Union Budget 2023-24, an outlay of US$ 170.85 million has been allocated for the Swadesh Darshan Scheme to develop a complete package of 50 tourist destinations for providing a wholesome tourism experience by facilitating physical, digital, and virtual connectivity, availability of tourist guides and tourist security.

Ministry has sanctioned 76 projects under the scheme since its inception under 13 themes for a revised sanctioned cost of US$ 668.95 million and has released US$ 534.9 million (till December 31, 2021).

Under Budget 2023-24, the Government has allocated US$ 30.25 million for the development of tourist circuits under PRASHAD. Since its launch in January 2015 and Ministry has sanctioned 37 projects in 24 states with estimated expenditure of US$ 146.4 million and a cumulative amount of US$ 91.6 million has been released for these projects. 68 destinations/sites have been identified in 30 States/UTs for development under the PRASHAD Scheme as on March 31, 2022.

Ministry of Tourism has partnered with the Quality Council of India (QCI), to assist the Hospitality Industry in their preparedness to continue operations safely and mitigate risks arising out of the COVID-19 pandemic through an initiative called SAATHI (System for Assessment, Awareness and Training for Hospitality Industry). A hotel/unit goes through the SAATHI framework and agrees to fully follow the requirements wherever applicable possible, and a self-certification is issued. Self-certified hotels/units attend webinars to clarify doubts through live interactions. If Hotel/unit desires, they may undertake a site assessment based on the SAATHI framework through QCI-accredited agencies and an assessment report with opportunities for improvement is shared with the assessed unit.

In June 2022, the Ministry of Tourism along with the Associations of Indian Universities (AIU) initiated a 12-episode webinar series under ‘Azadi Ka Amrut Mahotsav’ (AKAM) to engage and expose young minds of our country to the rich and diverse heritage of the country.

Accor, a French hospitality major will expand its India portfolio by adding nine additional hotels in the mid-scale and economy categories, bringing the total number of hotels to 54 in India.

The Medical Tourism sector is expected to increase at a CAGR of 21.1% from 2020-27.

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

The Ministry of Tourism has approved 16 projects for over Rs. 1,300 crore (US$ 171.2 million) in India's North-East.

The Ministry of Road Transport and Highways has introduced a new scheme called ‘All India Tourist Vehicles Authorisation and Permit Rules, 2021’, in which a tourist vehicle operator can register online for All India Tourist Authorisation/Permit. This permit will be issued within 30 days of submitting the application.

The United Nations World Tourism Organisation selected Pochampally in Telangana as one of the best tourism villages in November 2021.

In December 2023, IHCL expanded its presence in Maharashtra as it signed a hotel in Bandra, Mumbai. The Brownfield project will be branded an IHCL- SeleQtions hotel.

In December 2023, TAJ won the ‘World’s finest luxury grand palaces’ award at the ‘101 Best Executive Summit’ in Germany.

In November 2023, Indian Hotels Company (IHCL) announced the opening of Ginger Mumbai, Airport. The 371 Keys flagship Ginger hotel, strategically located near the domestic airport will introduce the brand’s lean luxe design and service philosophy of offering a vibrant, contemporary, and seamless hospitality experience to its guests.

In September 2023, Mahindra Holidays & Resorts (MHRIL) signed an MOU with the Government of Uttarakhand (UK) to invest Rs. 1,000 crore (US$ 120.16 million) and build 4-5 large marquee resorts over the next few years in Uttarakhand.

OYO estimates India to present a US$ 26 billion opportunity by 2030. To further strengthen its position in India, in October 2021, the company filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) of Rs. 8,430 crore (US$ 1.2 billion) with the Securities and Exchange Board of India (SEBI).

The Government of India launched the e -Visa on November 27, 2014 and subsequently e-Tourist Visa was initially introduced for 46 countries.

The e-Tourist Visa is part of t   e-Visa facility which includes an e-Business Visa, e-Conference Visa, e-Medical Visa, and e-Medical Attendant Visa.

In 2021, the Government of India announced 40,000 e-tourist visas out of 500,000 free regular visas to the tourist, to ensure a geographical spread of the incentive to important source markets globally.

In December 2019, e-visa facility was offered to around 170 countries.

The facility for e-tourist visa has been extended to passengers arriving at these ports of Mumbai, Mormugao, Mangalore, Kochi, and Chennai and immigration counters have been set up at five major ports visited by cruise ships, thus facilitating the cruise passenger arrivals at the seaports.

‘Medical Visa’ has been introduced, which can be given for specific purpose to foreign travelers coming to India for medical treatment. ‘E-Medical Visa’ has also been introduced for 166 countries.

India has invested heavily in AYUSH and is in a unique position to attract medical value travellers for a cure through AYUSH and for enhancing wellness.

India is ranked 10th out of the top 46 countries in the world in the Medical Tourism Index 2020-21 by Medical Tourism Association. The Indian medical tourism industry was estimated to be valued at US$ 7,417 million in 2022 and it is projected to surpass US$ 42,237.47 million by 2032.

Cruise tourism is one of the most vibrant and fast-growing sectors of the leisure and travel industry. The Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31.

Moreover, India is looking to take advantage of its 7,500 km coastline to tap the growth potential of the cruise tourism segment.

Ministry of Tourism is funding the development of cruise terminals, lighthouses, and other tourist infrastructure in several coastal locations to promote domestic and international cruise terminals at selected ports by 2023.

Ministry of Tourism has also sanctioned US$ 27.7 million for various projects towards the development of Cruise Terminals and related infrastructure in different States at the major ports under the scheme for ‘Assistance to Central Agencies for Tourism Infrastructure Development.

National strategy and roadmap for the development of rural tourism aims at prioritization of rural tourism at the national level.

This can benefit the local community economically and socially and facilitate interaction between tourists and locals for a mutually enriching experience.

India has rich natural and eco-tourism resources ranging from pristine forests, the snow-clad Himalayas, montane grasslands, golden and silver deserts, rivers, lakes, wetlands, mangroves, beaches, volcanoes and corals, housing tremendous biodiversity.

In 2021, the Ministry of Forest, Environment and Climate Change issued “Ecotourism guidelines in and around protected areas 2021” based on the key recommendations of the Tiger Task Force (2005), provisions contained in the Wildlife (Protection) Act 1972, Scheduled Tribes and Other Forest Dwellers (Recognition of Forest Rights) Act 2006.

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In 2023, Mizoram welcomed over 196,000 tourists, with Americans leading the foreign contingent, displaying the state's growing appeal and its commitment to responsible tourism.

The Indian Staffing Federation reports 3.6% growth in the staffing industry during Q3 FY24, driven by demand for a flexible workforce across key sectors like e-commerce, retail, and manufacturing.

Indian enthusiasm for global sports peaks as bookings rise 25-30%, reflecting rising incomes and youthful zeal, signalling a vibrant economy and aspirational culture.

India's hospitality sector experienced a notable increase in investment in fiscal year 2023, reaching an unprecedented US$ 401 million.

Retail brands are expanding into religious cities to cater to growing tourism, offering tailored experiences for pilgrims' needs.

States with Largest Domestic Tourist Arrivals in 2021

• Uttar Pradesh
• Andhra Pradesh
• Maharashtra

Industry Contacts

• Department of Tourism
• Palace on Wheels
• Hotel Association of India
• Federation of Hotel and Restaurant Associations of India

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Impact of travel and tourism industry on the Indian economy

Wherein many international countries are still recovering from the pandemic repercussions. The Indian economy car is excellently speeding through it. Though many sectors are helping in progression but travelling and tourism is gearing the tempo.

India as a country is blessed with the geographical and climatic gifts of diversification, beautification and exuberance. Right from the snowy Himalayan mountainous ranges to the dense tropical forests of Kerala, India offers a wide variety of variations and suits the spirit of almost all keen travellers.

Not with, just the topography, India tends to attract visitors from in and around the world with its extremely welcoming, warm, and kind-natured citizens. “Atithi Devo Bhava” is fondly followed by Indians and the Indian government.

All of these highly adaptable features make the Indian tourism industry an economic multiplier. Increasing investment destinations, thriving digitalisation, and gen Z-friendly platforms like Travel Now Pay Later (TNPL), are making travelling and tourism a fortune wheel for the Indian growth scale.

According to the WTTC (World Travel and Tourism Council), the travel and tourism sector’s contribution to the Indian GDP will outpass the pre-pandemic levels by 2024, and this seems to get true with the G-20 delegation coming to India. The tourism sector upscaling vigorously helps the country flourish as this sector push open the gate of opportunities for many other fields. Generating jobs, enhancing skills, inspiring local artisans and tradespeople, and providing economic support to hotels, entertainment, and transportation services.

India is now outshining and gaining fame for facilitating the best of the best services in medical tourism, ecotourism, adventure tourism, cruise tourism, cultural tourism, and pilgrimage tourism and now as evident with the G-20 leadership, business travel will too become extremely popular. With so much so, it is expected that Indian tourist arrivals will reach 30.5 million and will generate approximate revenue of over 59 USD billion dollars by 2028.

The potential and growth of tourism are evident and appreciated which is why the respected finance minister Nirmala Sitharaman during her budget 2023 presentation quoted “50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism”. The Foreign Exchange Earnings (FEEs) through tourism in India for the years 2019 to 2021 is ₹ 2,11,661cr in 2019, ₹50,136cr in 2020 and ₹65,070cr in 2021,” the ministry informed the Upper House.

The increased FTA (Foreign Tourist Arrivals) will certainly increase the potential of foreign exchange income and foreign investment in India which again in return will help the country and our countrymen to prosper.

It is not only about the financial inputs, the booming travel and tourism industries also provide a sustainable overall human development with 20 million people currently working in the Indian tourism industry, it is also anticipated that employment opportunities in the upcoming years will raise up to 140 million.

The fast pacing tour and travelling industries have improvised themselves to another level by habituating and accepting the mate ship of technology and digitisation. The online marketing of the packages and advertising even the rarest and least known tourist destinations has increased the interest of not only outsiders but of Indian explorers too, in fact, Indian tourists are predicted to be amongst the top spenders in 2023.

Tours and travel companies are constantly putting in the hard labour to understand and move one step ahead of the trend. With staycation, workcation and many other new trends setting in, firms are trying to accommodate and provide the best travel experience to the shoppers. As tour and travel companies play an integral role in being a part of the financial development of the country. One can hope that our country too attains a lot of financial success with our government’s Swadesh Darshan 2.0 scheme.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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Current statistics on this topic.

Value of travel market in India FY 2018-2027

Travel market distribution in India FY 2018-2027, by type

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Key figures.

• Basic Statistic Direct contribution of tourism and hospitality to GDP in India 2012-2028
• Basic Statistic Revenue share from tourism in India 2013-2022, by segment
• Premium Statistic Distribution of direct travel and tourism GDP in India FY 2023, by spending type
• Basic Statistic Number of jobs in travel and tourism sector in India FY 2014-2022
• Premium Statistic PE/VC investment deals in travel and hospitality 2013-2022

Direct contribution of tourism and hospitality to GDP in India 2012-2028

Direct contribution of tourism and hospitality to GDP in India from 2012 to 2017, with an estimate until 2028 (in billion U.S. dollars)

Revenue share from tourism in India 2013-2022, by segment

Distribution of revenue from tourism to GDP in India from 2013 to 2022, by segment

Distribution of direct travel and tourism GDP in India FY 2023, by spending type

Distribution of direct travel and tourism GDP in India in the financial year 2023, by spending type

Number of jobs in travel and tourism sector in India FY 2014-2022

Number of direct and indirect jobs in the travel and tourism sector across India from financial year 2014 to 2022, with projection for 2023 (in millions)

PE/VC investment deals in travel and hospitality 2013-2022

Number of private equity and venture capital deals in the travel and hospitality sector in India from 2013 to 2022

• Premium Statistic Tourist arrivals at India 2022, by region
• Basic Statistic Number of domestic tourist visits in India 2000-2022
• Premium Statistic Number of foreign tourist arrivals in India 2008-2022
• Premium Statistic Number of visitors to national monument India FY 2017-2022, by type
• Premium Statistic Number of domestic visitors to ticketed monuments India FY 2023
• Premium Statistic Number of foreign visitors to ticketed monuments India FY 2023

Tourist arrivals at India 2022, by region

Tourist arrivals at India in 2022, by region (in 1,000s)

Number of domestic tourist visits in India 2000-2022

Number of domestic tourist visits in India from 2000 to 2022 (in millions)

Number of foreign tourist arrivals in India 2008-2022

Number of foreign tourist arrivals in India from 2008 to 2022

Number of visitors to national monument India FY 2017-2022, by type

Number of visitors to national monuments across India from financial year 2017 to 2022, by type (in millions)

Number of domestic visitors to ticketed monuments India FY 2023

Leading ticketed monuments in India in financial year 2023, by number of domestic visitors (in 1,000s)

Number of foreign visitors to ticketed monuments India FY 2023

Leading ticketed monuments in India in financial year 2023, by number of foreign visitors (in 1,000s)

Travel services

• Premium Statistic Online travel agency usage India 2023, by gender
• Premium Statistic Agencies used for online services India 2023 by gender
• Premium Statistic Device used for online travel agency India 2023, by age group
• Premium Statistic Purpose of online travel agency usage India 2023, by age group
• Premium Statistic Reason for not using online travel agency India 2023, by gender

Online travel agency usage India 2023, by gender

Share of online travel agency usage in India as of June 2023, by gender

Agencies used for online services India 2023 by gender

Share of agencies used for online travel services in India as of June 2023, by gender

Device used for online travel agency India 2023, by age group

Device used to access online travel agencies in India as of June 2023, by age group

Purpose of online travel agency usage India 2023, by age group

Purposes of using an online travel agency in India as of June 2023, by age group

Reason for not using online travel agency India 2023, by gender

Share of reasons for not using online travel agencies in India as of June 2023, by gender

Market overview

• Premium Statistic Value of travel market in India FY 2018-2027
• Premium Statistic Travel market distribution in India FY 2018-2027, by type
• Premium Statistic Travel market distribution in India FY 2018-2027, by booking channel
• Premium Statistic Value of hotel market in India FY 2018-2027
• Premium Statistic PE/VC investments in travel and hospitality 2013-2022

Value of the travel market in India from financial year 2018 to 2020, with an estimate for 2027 (in billion U.S. dollars)

Distribution of Indian travel market from financial year 2018 to 2020, with an estimate for 2027, by type

Travel market distribution in India FY 2018-2027, by booking channel

Travel market distribution across India from financial year 2018 to 2020, with an estimate for 2027, by booking channel

Value of hotel market in India FY 2018-2027

Value of hotel market in India from financial year 2018 to 2020, with an estimate for 2027 (in billion U.S. dollars)

PE/VC investments in travel and hospitality 2013-2022

Private equity and venture capital investments in travel and hospitality sector in India from 2013 to 2022 (in million U.S. dollars)

Hotel industry

• Premium Statistic Distribution of hotel market in India FY 2018-2027, by type
• Premium Statistic Distribution of the hotel market in India FY 2018-2027, by booking channel
• Premium Statistic Number of hotel rooms in India FY 2001-2023
• Premium Statistic Number of approved hotels in India 2022, by category
• Premium Statistic Supply of hotel rooms in India FY 2022-2023, by city
• Basic Statistic Occupancy rate in hotels in India FY 2001-2024

Distribution of hotel market in India FY 2018-2027, by type

Distribution of the hotel market across India from financial year 2018 to 2020, with an estimate for 2027, by type

Distribution of the hotel market in India FY 2018-2027, by booking channel

Distribution of the hotel market across India from financial year 2018 to 2020, with an estimate for 2027, by booking channel

Number of hotel rooms in India FY 2001-2023

Number of hotel rooms across India from financial year 2001 to 2023, with an estimate until 2027 (in 1,000s)

Number of approved hotels in India 2022, by category

Number of approved hotels in India in 2022, by category

Supply of hotel rooms in India FY 2022-2023, by city

Existing supply of hotel rooms across Indian cities from financial year 2022 to 2023 (in 1,000s)

Occupancy rate in hotels in India FY 2001-2024

Occupancy rate in hotels in India from financial year 2001 to 2023, with estimates of 2024

Major players

• Basic Statistic Leading hotel and restaurant companies in India 2023, by market capitalization
• Basic Statistic Domestic market share of airlines across India FY 2023, by passengers carried
• Premium Statistic Revenue of Airbnb India FY 2018-2020
• Premium Statistic Revenue of OYO across India FY 2019-2023
• Premium Statistic Thomas Cook India revenue FY 2020-2023
• Premium Statistic MakeMyTrip's revenue FY 2015-2023

Leading hotel and restaurant companies in India 2023, by market capitalization

Leading hotel and restaurant companies in India as of 2023, based on market capitalization (in billion Indian rupees)

Domestic market share of airlines across India FY 2023, by passengers carried

Domestic market share of airlines across India in financial year 2023, by passengers carried

Revenue of Airbnb India FY 2018-2020

Revenue of Airbnb India from financial year 2018 to 2020 (in million Indian rupees)

Revenue of OYO across India FY 2019-2023

Revenue of OYO across India from financial year 2019 to 2023 (in billion Indian rupees)

Thomas Cook India revenue FY 2020-2023

Revenue of Thomas Cook (India) Limited from financial year 2020 to 2023 (in billion Indian rupees)

MakeMyTrip's revenue FY 2015-2023

Revenue of MakeMyTrip Limited from financial year 2015 to 2023 (in million U.S. dollars)

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• India’s Push for Sustainable Tourism

• Team India Blogs

World Tourism Day is celebrated every year to commemorate the foundation of the United Nations World Tourism Organization (UNWTO), a specialised agency of the United Nations which promotes responsible, sustainable, and universally accessible tourism. This year’s theme of World Tourism Day is Tourism and Green Investment, which highlights the need for more and better-targeted investments for People, for the Planet and for Prosperity, to enable tourism to deliver on its massive potential to provide opportunities for people, to build resilient, to accelerate climate action and greater sustainability for the planet and deliver inclusive prosperity around the pillars of innovation and entrepreneurship.

Tourism forms a critical part of India’s economy as it is a key driver of economic growth and job creation. The Ministry of Tourism’s India Tourism Statistics 2022 states that the Travel and Tourism sector created 79.86 Mn jobs, including direct and indirect ones. Moreover, 15.34% of the jobs created in 2019-2020 were in this sector. In terms of GDP, during 2019-2020, the tourism sector’s direct and indirect contribution was 5.19%. India’s ranking in the World Economic Forum’s Travel and Tourism Development Index (TTDI) is 54th in 2021.

In 2021, over 6.19 Mn foreign tourists travelled to India, fetching us foreign exchange earnings of $8.79 Bn, the 14th highest in the world. It is important to mention that during this period, tourism was among the worst-hit sectors due to the pandemic. It is estimated that India's Tourism Sector will achieve the pre-pandemic level of foreign exchange earnings of $30 Bn and 15 Mn foreign arrivals by mid-2024, totalling a $50 Bn GDP contribution from Tourism.

Further, it is estimated that India’s tourism sector will grow at 7-9% CAGR in the coming decade. By 2030, it will contribute $250 Bn — $56 Bn $ in foreign exchange earnings and 25 Mn foreign arrivals — to GDP, creating 137 million jobs.  

The government is committed to realising the potential of the tourism sector sustainably to ensure that the tourist spots and wildlife-sensitive places are preserved for a long so that future generations also visit them. Toward this end, the government has taken various steps.  

National Strategy for Sustainable Tourism was formulated by the Ministry of Tourism in 2022 to mainstream sustainability in the Indian tourism sector and ensure more resilient, inclusive, carbon-neutral and resource-efficient tourism while safeguarding natural and cultural resources.  The comprehensive strategy document identified seven strategic pillars to make India a global destination for sustainable and responsible tourism: Promoting Environmental Sustainability; Protecting Biodiversity; Promoting Economic Sustainability; Promoting Socio-Cultural Sustainability; Scheme for Certification of Sustainable Tourism; IEC and Capacity Building; and Governance, and emphasised on the synergy between 16 ministries of the union government, state governments, local government institutions, industry, NGOs, local communities. 

National Strategy for Ecotourism was drafted by the Ministry of Tourism in 2022 after considering the Ecotourism guidelines of the Ministry of Environment, Forest and Climate Change, the National Strategy for Rural Tourism, and the National Strategy Sustainable Tourism. It was designed to develop an enabling ecosystem for the growth of ecotourism in the country.   The strategy emphasised creating synergies amongst the 8 ministries of the Central government, State Governments, Panchayati Raj Institutions, conservation NGOs and the private sector to develop ecotourism in the country. For the holistic development of the industry, the following pillars were identified: State Assessment and Ranking; State Strategy for Ecotourism; IEC, Capacity Building and Certification; Marketing and Promotion; Destination and Product Development; Public-Private and Community Partnerships; Governance and Institutional Framework.  Among other steps, the strategy also envisaged ranking the States based on the globally recognised parameters of ecotourism. It will foster competitiveness and encourage mutual learning among all states. 

Draft National Tourism Policy 2022 recognises tourism as a global opportunity for India and advocates sustainable and responsible growth of the tourism sector in the country. The main objective of the Policy is to make India a leading destination for sustainable and responsible tourism by minimising the negative impact of tourism on social, environmental, and economic aspects and maximising the positive impact. The Policy will act as a roadmap to achieve a $1 Trillion contribution of the tourism sector to GDP by the year 2047.

Travel for LiFE campaign was launched by the Ministry of Tourism in association with CNA-ST in 2021. The campaign aims to encourage the 300 Mn domestic tourists in India to shift towards responsible behaviour and mindful resource consumption while travelling.

Swadesh Darshan Scheme 2.0 was rolled out with the aim of developing sustainable and responsible tourism destinations in the country. The revamped scheme envisages enhancing the contribution of tourism to the local economies; Creating jobs, including self-employment for local communities; Enhancing the skills of local youth in tourism and hospitality; Increasing private sector investment in tourism and hospitality; and preserving and enhancing the local cultural and natural resources. 

Sustainable Tourism for India Criteria and Indicators (STCI) aims to benchmark sustainable tourism practices for various tourism business enterprises, mainly accommodation units and tour operators, for STCI certification. The guidelines make it mandatory to ensure effective sustainable management, heritage protection, sharing social and economic benefits with the local community, conserving the environment, carrying capacity, and minimising negative impacts.

Policies of States: Various tourism-dependent states like Uttarakhand, Sikkim, and Himachal Pradesh have made policies to promote sustainable tourism while protecting rich biodiversity and natural wealth. 

As illustrated above, the tourism sector in India has enormous potential as it is a multi-sectoral activity. The government is ambitiously promoting the industry to enable it to achieve $1 Trillion while ensuring that the pressure of tourists is within the country’s carrying capacity.

• https://www.unwto.org/world-tourism-day
• https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2023-03/concept-note-wtd2023-en.pdf?VersionId=El4TZl3a_WXt_K.Ujl2L0wrlQ2ZHE9k0
• https://static.pib.gov.in/WriteReadData/userfiles/IndiaTourismStatistics2022English.pdf
• https://tourism.gov.in/sites/default/files/2023-07/India%20Tourism%20Statistics%20at%20a%20glance%202023%20-%20English%20version_0.pdf
• https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1860974
• https://tourism.gov.in/sites/default/files/2022-05/National%20Strategy%20for%20Sustainable%20tourism_0.pdf
• https://tourism.gov.in/sites/default/files/2022-09/Draft%20National%20Tourism%20Policy%202022%20Final%20July%2012.pdf
• http://sustainable.tourism.gov.in/Travel-for-LiFE-campaign.html
• https://tourism.gov.in/sites/default/files/2023-04/Swadesh%20Darshan%20%20Guideline%20Booklet.pdf
• http://sustainable.tourism.gov.in/images/pdf/Accomodation%20Units_Toolkit_31.03.2023.pdf
• https://tourism.gov.in/sites/default/files/2020-01/Document.pdf

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Development of Tourism in India, Current Landscape, Government Initiatives

Tourism in India holds immense potential as a significant contributor to country's economy, despite facing various challenges. Read this article for Opportunities for Development of Tourism in India.

Table of Contents

Development of Tourism in India

Tourism in India holds immense potential as a significant contributor to the country’s economy, despite facing various challenges. With its rich cultural heritage, diverse landscapes, and historical monuments, India has always been a magnet for travellers from around the globe. However, the development of this sector has been met with both successes and hurdles.

Current Landscape and Economic Impact of Tourism in India

Tourism in India contributes approximately 4.6% to the nation’s GDP, as per the Ministry of Tourism. Despite not being prioritized by the government, the sector plays a vital role in job creation, supporting over 32 million jobs in 2021. The World Travel and Tourism Council reported that in 2021, tourism generated ₹13.2 lakh crore (US$170 billion), accounting for 5.8% of India’s GDP.

However, the COVID-19 pandemic significantly impacted tourism, leading to a decline in foreign tourist arrivals by 44% in 2022 compared to 2019 figures. Nonetheless, India’s domestic tourism market remains robust, with over 1 billion domestic tourist visits recorded in 2012.

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Strengths and Challenges in India’s Tourism Sector

India possesses numerous strengths that bolster its tourism sector. The country’s cultural and natural resources, including historical monuments, scenic landscapes, and diverse wildlife, attract travellers worldwide. Additionally, India’s air transport infrastructure and natural resources are highly regarded globally.

However, the sector also faces several challenges. Infrastructure deficiencies, such as inadequate road networks and outdated facilities, hinder the tourist experience. Moreover, safety concerns, including issues related to women’s safety and petty crime, can deter potential visitors. Additionally, bureaucratic red tape and complex visa procedures have been cited as barriers to tourism growth.

Opportunities for Growth and Development of Tourism in India

Despite the challenges, India’s tourism sector offers ample opportunities for growth and development:

• Diverse Attractions: From historical monuments and cultural festivals to scenic landscapes and adventure sports, India offers a wide range of tourist attractions. Leveraging these diverse offerings can attract travellers with varied interests and preferences.
• Cultural Experiences: India’s rich cultural heritage and traditions provide unique experiences for tourists. Promoting cultural tourism, including heritage walks, culinary tours, and traditional art forms, can attract visitors seeking authentic cultural experiences.
• Medical Tourism: India has emerged as a leading destination for medical tourism, offering high-quality healthcare services at competitive prices. With state-of-the-art hospitals and skilled medical professionals, India attracts patients from around the world for treatments ranging from surgeries to wellness retreats.
• Rural and Eco-Tourism: There is growing interest in experiential and sustainable tourism experiences, such as rural homestays, wildlife safaris, and initiatives. Encouraging community-based tourism initiatives can benefit rural economies while conserving natural resources.
• Digital Transformation: Technology plays a crucial role in enhancing the tourism experience, from online booking platforms and virtual tours to digital marketing strategies. Embracing digital innovations can improve accessibility, convenience, and connectivity for travellers.

Government Initiatives to Promote India’s Tourism Sector

The Government of India has taken several initiatives to promote tourism development:

• Policy Support: The Ministry of Tourism formulates national policies and collaborates with stakeholders to develop and promote tourism. Efforts are underway to simplify regulations, improve infrastructure, and enhance the overall tourism experience.
• Incredible India Campaign: The Incredible India campaign showcases India’s tourism potential through multimedia campaigns, roadshows, and promotional events. It highlights the country’s cultural diversity, natural beauty, and hospitality to attract international travellers.
• Niche Tourism Promotion: The government is focusing on promoting niche tourism products such as rural, cruise, medical, and eco-tourism. Specialized marketing campaigns and infrastructure development initiatives are aimed at tapping into niche markets and diversifying the tourism portfolio.
• Public-Private Partnerships: Collaborations between the government, private sector, and local communities are essential for tourism development. Public-private partnerships facilitate investment, infrastructure development, and skill enhancement in the tourism sector.

Future Outlook For Tourism Development in India

Despite the challenges posed by the pandemic and other systemic issues, the outlook for tourism in India remains optimistic. With concerted efforts from the government, private sector, and other stakeholders, the sector is poised for growth. Forecasts suggest that tourism could contribute 7.2% of India’s GDP by 2031, underscoring its potential as a key driver of economic development.

In conclusion, tourism development in India presents challenges and opportunities. By addressing infrastructure deficiencies, promoting niche tourism products, and prioritizing safety and security, India can unlock the full potential of its tourism sector and emerge as a premier global destination for travellers.

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Development of Tourism in India FAQs

What is the current development of tourism in india.

Today tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and providing 8.78% of the total employment.

What is the role of tourism in development?

In developing countries, tourism development has been used as an important strategy for increasing economic growth, alleviating poverty, creating jobs, and improving food security.

What is the importance of tourism in India?

Tourism in India has grown substantially. It promotes National Integration and provides support to local handicrafts and cultural pursuits.

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Tourism And Economic Development In North-East India

India’s “Look East” policy, initiated in 1991, marked a significant shift in India’s perspective of the world, focusing on forging economic and cultural ties with countries in the East. As part of this policy, the tourism industry played a crucial role in promoting economic development, especially in the North-East region of India. With its rich natural beauty, cultural diversity, and historical significance, the North-East has immense potential to attract tourists and drive economic growth. This article explores the impact of the Look East policy on the tourism industry in India, particularly in the North-East region.

By: Dipak Kurmi

Tourism potential of North-East India:

The North-East region of India boasts diverse tourism offerings that can captivate visitors from around the world. It is home to stunning natural landscapes, including scenic beauty, eco-tourism opportunities, and wildlife sanctuaries. The region also offers a vibrant cultural experience with its numerous festivals, tribal traditions, and unique handlooms and handicrafts. Furthermore, the North-East has historical and religious sites that attract pilgrims and heritage enthusiasts alike. Adventure tourism, golf tourism, and the exploration of ethnic diversity add to the region’s tourism appeal.

Assam’s role in North-East tourism:

Among the North-Eastern states, Assam stands out as a prime destination with vast tourism potential. Known for its tea plantations, biodiversity, and wildlife, Assam offers a range of experiences for nature enthusiasts. National parks like Kaziranga and Manas, home to the great Indian one-horned rhinoceros and other wildlife species, draw tourists from across the globe. The state’s historical sites, such as Sivasagar and Tezpur, offer a glimpse into Assam’s rich past. Moreover, pilgrimage sites like Kamakhya Temple and the cultural hub of Majuli, the largest river island in the world, contribute to Assam’s appeal as a tourist hotspot.

Government initiatives and challenges:

Recognizing the tourism potential of the North-East, the Indian government has undertaken several measures to promote the region’s development. The Look East policy has facilitated initiatives like the Asian Highway, Asian Railway link, and natural gas pipelines, enhancing connectivity and infrastructure. The establishment of a ship repair facility, skill universities, and the Assam Intra-State Transmission System Enhancement Project demonstrate the government’s commitment to boost tourism-related infrastructure. However, there are challenges to overcome, including limited awareness, inadequate promotion, and connectivity issues. Efforts are required to address these challenges and unlock the full potential of North-East tourism.

Economic impact of tourism:

The tourism industry plays a crucial role in fostering economic development in North-East India. It serves as a significant source of employment, both skilled and unskilled, promoting national integration and international brotherhood. Tourism generates foreign exchange earnings and stimulates other sectors such as hospitality, transport, and handicrafts. By attracting tourists, the region experiences an inflow of investments and increased trade opportunities. The economic benefits of tourism extend beyond urban areas, positively impacting rural communities and encouraging sustainable development.

The Look East policy has had a transformative impact on the tourism industry in India, particularly in the North-East region. By recognizing and harnessing the tourism potential of the North-East, India has opened up new avenues for economic growth and development. Assam, with its natural beauty, historical sites, and cultural heritage, stands out as a key player in driving tourism in the region. However, concerted efforts are required to overcome challenges and effectively promote North-East tourism on a global scale. With the right strategies and investments, the North-East region of India can truly become a thriving tourism destination, contributing significantly to the country’s overall economic prosperity. (The writer is a journalist and commentator based in Guwahati, he can be reached at [email protected])

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• Travel, tourism sector expected to add 5.82 cr jobs in India by 2033: NLB Services

The travel and tourism sector is poised for significant growth, expected to create 5.82 crore jobs in India by 2033. Despite challenges, the sector saw a quick recovery post-pandemic. In 2020, it accounted for 39 million jobs, constituting 8% of the nation's workforce. Talent demand in tourism surged by 44% in August 2023, with 1.6 million additional jobs expected in 2023. This growth trend is projected to continue, with the sector set to add 58.2 million jobs by 2033.

• Updated On Apr 30, 2024 at 09:50 AM IST

With a continued growth momentum, the travel and tourism sector is all set to add 5.82 crore jobs across the country by 2033, a top executive of global technology and digital talent solutions provider NLB Services said on Monday. "The growing synergy of the sector has led to steadfast employment generation across the country both in tier I and II locations. In the pandemic year 2020, the tourism sector accounted for 39 million jobs, constituting 8 per cent of the nation's total workforce. Post the pandemic recovery tenure, this was one of the sectors that saw the quickest recovery," NLB Services CEO Sachin Alug said in a statement. Advt Incidentally, talent demand in tourism recorded a 44 per cent spike in August 2023, and 1.6 million additional jobs were expected to be added in the calendar year 2023, he said. With the continued growth momentum, the travel and tourism sector is all set to add 58.2 million jobs by 2033, throughout the country, he added. Serving as a crucial source of foreign exchange, travel, and tourism contributed Rs 15.9 lakh crore (USD 191.25 billion) to India 's economy in 2022 and was estimated at Rs 16.5 lakh crore for 2023, he noted. From the city perspective, Alug said, the top five states attracting domestic tourists so far include Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, and Maharashtra. Top cities driving the increase in hiring in the sector include Delhi NCR, Mumbai, Bengaluru, Pune, and Kochi, he said adding that in tier II cities, Jaipur, Ahmedabad, and Chandigarh, he stated. Alug said the prominent job profiles that will continue to be in demand experiencing year-on-year surges include sales (18 per cent), business development (17 per cent), chefs (15 per cent), travel consultants (15 per cent), tour operators (15 per cent), travel agents (15 per cent), hoteliers (15 per cent), guides (20 per cent), wildlife experts (12 per cent), and transportation providers (15 per cent), among others. Advt He said the travel and tourism sector is also undergoing transformation, with many new subsets like destination wedding travel, religious tourism, international tourism, adventure sports tourism, ecotourism, cultural tourism, and rural tourism emerging in the new decade. Another interesting emergence is that of sustainable tourism which has observed substantial global adoption, with a market value reaching USD 180 billion. He further stated that companies are adopting the gig model to address talent shortages and meet the growing demand in the sector. Since January 2023, there has been a 14 per cent increase in gig roles within the travel and tourism sector, encompassing positions such as translators, photographers, and tour guides and this is further expected to increase by 18-20 per cent in the next 2 years, Alug added.

• Published On Apr 30, 2024 at 09:49 AM IST

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Development of Tourism in India

Travel and Tourism are as old as mankind on earth. Man at beginning of his existence roamed about the surface of the earth in search of food, shelter, security and better habitat. However, in course of time, such movements were transformed into wanderlust.

During Hindu and Chinese civilization a movement of religion, education and culture began. Christian missionaries, Buddhist monks and other traveled far and wide carrying religious messages and returned with fantastic images and opinions about alien people.

In ancient time people travel for the religious purpose in India. There are many proofs that tell that people travel for Char Dham Yatra in ancient time. Development of Indian tourism starts into the 19th century when Sir John Sargent committee was set up in 1945 for promotion and development of tourism in India.

After that, the Indian government took many various incentives for the development of Indian tourism through tourism policies, economic reforms. Various committees were created for tourism development and separately dedicated ministries and tourism organizations established.

Various tourism policies, plans, and committees were created by the Indian government for the development of Indian Tourism. These policies or plans were headed by the Ministry of Tourism. Ministry of Tourism (MOT) is a nodal agency for the formulation of national tourism policies and programmes related to tourism.

Some major initiatives taken by the Indian government for development and promotion of Indian tourism are following as:

Economic Reforms

The government of India has taken many economic reforms for the development and promotion of Indian tourism. Since, 1952 when India was adopted policy of development through planning, in 1952, when the first five-year plan was created.

There are a number of economic reforms has been taken from time to time for development of Indian tourism and Indian economy like i.e. rising of disposable income, middle-class family, Dual couple model, LTCC (Leave Travel Concession), Paid holidays etc.

Five Year Plans

Indian government allocates funds for the development and promotion of Indian tourism in these plans. India government introduce a total eleven five years plans. Tourism got a status of an industry in the seventh five-year plan, and 68 crore funds were allocated.

The highest fund was allocated for tourism into the eleventh five-year plan, a total sum of 9290 crores for development of Indian tourism at domestic as well as international level.

First Tourism Policy

In November 1982, a tourism policy was formulated and presented to the parliament of India. The objective of the policy was to develop tourism, helps to preserve Indian heritage and culture and projecting the same to the world.

Another objective of this tourism policy was to bring socio-economic benefits in terms of employment, income generation, revenue generation, and foreign exchange.

National Action Plan

In 1992, a national action plan was announced. It was regarded as an emerging action plan to set things right in some key areas. The objectives of this action plan were to improve the tourism infrastructure, restructuring, and strengthening of the institutions for the development of human resources.

National Tourism Policy 2002

For the first time in the history of tourism development in India, the national tourism policy was announced in 2002. It is highlighted that a tourist should feel satisfied and return with unforgettable experiences.

The concept of hospitality included 7s of tourism in this policy. These are following as:

• Co-operation
• Facilitation
• Infrastructure Development
• Information
• Cleanliness

Incredible India Campaign

Incredible India campaign is a marketing campaign for Indian tourism to promote at the international level. Incredible India title was officially branded and promoted by Amitabh Kant in 2002 . The main motto of this campaign is to promote India as a world-class tourism destination in the world tourism market.

Many campaigns were held under Incredible India campaign into developing country such as USA or UK. Indian tourism Ministry showcases Indian tourism beauty and its potential into the world tourism market to create awareness about Indian tourism destination or to attract international tourist.

Department of Tourism (DOT)

On March 1, 1958, a separate department of tourism was created in place of a tourist traffic branch under the Ministry of  Transport and Communications. It was headed by a director general in the rank of a joint secretary to the Govt. of India.

L.K Jha Committee

This committee was prompted by Indian Government in March 1963 under the chairmanship of Mr. L.K. Jha. This committee made several recommendations to improve tourism inflow into India. This committee gives some important suggestion and recommendation to the Indian government for development and improvement of Indian tourism at domestic as well as international level.

Indian Tourism Development Corporation (ITDC)

The India Tourism Development Corporation (ITDC) was established under the MOT (Ministry of Tourism) in October 1966. ITDC has been responsible for building tourism infrastructure, promotion, and expansion in the country.

With the annual turnover of Rupees 500 crore, ITDC works for developing tourism infrastructure and promoting India as a tourist destination. It is a full government owned and managed the corporation.

Tourism Finance Corporation of India Ltd. (TFCI)

Tourism Finance Corporation of India was set up a specialized all India Financial Institution to meet the financing or funding requirement of tourism and hotel industry. TFCI was incorporated as a public limited company under the company act 1956, on 27th January 1989. The operational activities were started on 1st February 1989.

Travel Agent Association of India (TAAI)

The Travel Agent Association of India is an apex body and it is the oldest association in India. It was established in the year 1951. The prime objective of TAAI is threefold. These are following as:

• To safeguard the interests of players in the tourism industry.
• To protect the rights of travelers.
• To promote orderly growth and development of the tourism industry .

As for as India is concerned, the International tourist traffic has been growing at a rate of 8 percent during the last year. The Inbound visitors 2.28, 2.37, 2.36 and 2.51, 2.8 million in the year of 1996, 1997, 1998,  1999 and 2003 respectively. Tourism has created direct employment of about 9.8 million in 1997-98. It accounted for about 2.4% of the total labor force.

The Ninth Plan Working Group Report of the Planning Commission has forecasted 5.95 million arrivals in 2001 and US$ 8% billion foreign exchange earnings by 2001. Further, the world tourism and travel council estimated that tourism will contribute Rs. 5,00,000 crores to the GDP, create 8 million new jobs, Rs. 1,30,000 crores in capital investments and Rs. 1,60,000 crores in export earning to the Indian economy.

Further, WTTC’s third satellite accounting research (SAR) Forecasts 7.4 percent real growth of Indian tourism. The World Tourism Organization (WTO) estimated that 5.08 million tourists visit in India in 2010 and 8.90 million in 2020.

Internation tourism trends in India are following as:

India receives 15.68% of inbound tourism from Bangladesh, 14.73% from the United States, 10.70% from the United Kingdom. These three are the top three countries from which India receive most of the Inbound tourists. The details of the top 10 source country for inbound tourism in India are following as:

Tamil Nadu attracts 19.1 %, Maharashtra 18.9 %, Uttar Pradesh 12.8% of the total inbound tourism of India. These are the top 3 states of India in the number of foreign tourist visits. The share of top 10 states/UTs of India in the number of foreign tourist visits are following as:

Foreign exchange earning from inbound tourism of India is increasing year after year. It was 3460 million US$ in 2000 and 13230 million US$ in 2017. Foreign exchange increase at the rate of 22.3% from 2000 to the present date.  Foreign exchange earnings from tourism in India from 2000 to 2017 are following as:

The Indian government is developing a world-class infrastructure to attract foreign tourist as well as domestic tourists. Ministry of tourism operates many marketing campaigns for promotion of Indian tourism among foreign tourists.

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• The economic renaissance powered by spiritual tourism

Infrastructure development is significantly enhancing access to India’s spiritual sites, with notable advancements like the highways and expressways facilitating day trips to religious cities.

• Anshuman Magazine ,
• ETHospitalityWorld
• Published On Apr 24, 2024 at 01:00 PM IST

The exponential growth of spiritual tourism in India is catalysing the expansion of the Indian faith-based tourism market. The government's proactive tourism initiatives and enhanced connectivity and infrastructure development between pilgrimage sites are fuelling the market's growth trajectory. Riding the wave of a spiritual revival, the economic dynamics of the country are gaining momentum, driven by targeted government schemes such as *PRASHAD, SWADESH DARSHAN, which aims to enhance tourism infrastructure at key pilgrimage and heritage sites, offering pilgrims and cultural aficionados a richer experience. These programs are catalysts for the expansion of spiritual tourism, spotlighting pilgrimage and cultural landmarks throughout India. Complemented by improved connectivity and digital advances in religious commerce, these efforts are building a comprehensive growth story for the nation's spiritual and economic landscape. Advt Driven by the growing popularity of spiritual tourism, investors are flocking to capitalise on the market's potential. Investments in the spiritual cities not only enhance the spiritual experience for pilgrims but also create a thriving economic ecosystem, thereby benefiting allied sectors such as infrastructure, real estate, hospitality, amongst others. As per industry estimates, spiritual tourism, specifically, is expected to play a vital role in the growth story of India's tourism industry, as over 50 percent of domestic tourism in the country is spiritual in nature. In addition, over 30 million international travellers are expected to visit India by 2028 for this purpose. This deep connection between tourism and spirituality is strengthened by improved infrastructure, such as highways and airports, making it easier to reach spiritual hubs. Infrastructure development: the backbone of transformation Infrastructure development is significantly enhancing access to India’s spiritual sites, with notable advancements like the highways and expressways facilitating day trips to religious cities. Additionally, the launch of the Vande Bharat Express and other special trains is revolutionising pilgrimage travel, offering fast and comfortable journeys to key religious destinations such as Ayodhya, Amritsar, and Varanasi. This has led to a marked increase in visits, with Mathura experiencing a 190 percent surge in tourist numbers in 2022 compared to the previous year, easing travel for devotees and enriching their pilgrimage experience. Advt With improved connectivity to these cities, the hospitality industry is expanding its offerings with a diverse range of accommodations. Notably, there has been a surge in hotel developments, with about 3,000 new rooms planned in key religious cities. This growth has attracted major brands like Marriott, Taj, and Hyatt, as reported by CBRE and STR Global. These hotels, catering to the modern spiritual traveller’s preferences for cleanliness, hygiene, and family-friendly environments, aim to provide a unique blend of comfort, luxury, and traditional hospitality. This exciting combination creates a haven for those on a spiritual journey , promising a stay that is both indulgent and spiritually enriching. Moreover, the once time-consuming process of pilgrimage has been revolutionised by technology. Digital platforms now simplify the booking of services, travel arrangements, and accommodations, putting the power of planning in the hands of the spiritual traveller. Rise of urban spiritual tourism Spirituality which was once considered for the elderly is no more restricted by age. In 2024, millennials and Gen Z individuals have already embarked on a journey of self-discovery, seeking a profound connection with the world. These travellers, however, look for accommodations which are a mix of simplicity and features. It is they who have fuelled the rise of urban spiritual tourism, flocking to cities with rich spiritual heritages in search of meaningful experiences beyond traditional sightseeing. Furthermore, while on their journey, most travellers also look for solutions in ancient wellness therapies like yoga or Ayurveda. This shift has fostered an innovative synergy between wellness centres and hospitality entities across India. Hotels, too, have become sanctuaries of serenity, offering tailored wellness retreats and easy passage to hallowed grounds. India's spiritual spots like Puri, Tirupati, Amritsar, and Varanasi now feature renowned hotels like Mayfair, Taj, ITC, and Hilton. These places offer more than just accommodation; they provide immersive experiences with packaged tours and special services, making the spiritual journey even more enriching and appealing to international visitors. In an age where ancient traditions meet modern comfort, the growth of tourist amenities is enriching the spiritual journey, notably influencing the retail landscape. Retail landscape capitalising the spiritual tourism boom Retail experiences are undergoing a transformation tailored for spiritual travellers, providing a diverse range of offerings from religious artefacts to local delicacies, thereby significantly enhancing their journey. To further propel the growth of this sector, there is establishment of a supportive ecosystem, including bespoke retail experiences and the creation of FMCG manufacturing and distribution hubs near spiritual locales. As the influx of spiritual seekers to India's sacred cities increases, retail brands spanning various segments—such as fashion, food and beverage, supermarkets, home goods, department stores, and electronics—are evolving their offerings to cater to the nuanced needs of these visitors. Our assessment is cities like Amritsar, Ajmer, Varanasi, and several others are at the forefront of this retail surge. These brands are cleverly adjusting their products and services in both malls and bustling street locations, aiming to meet the demands of a growing demographic of tourists. The blend of retail innovation and spiritual tourism is driving growth across India. This growth spans infrastructure, hospitality, and retail, introducing a new era of convenience and enrichment for travellers. With improved travel networks, wellness centres, top-notch hotels, and personalised shopping, India is meeting the modern pilgrim's needs. This development positions spiritual tourism as a key attraction, marrying sacred travels with comfort, and promising prosperity for both travellers and the nation. *PRASHAD: Pilgrimage Rejuvenation And Spiritual Augmentation Drive (PRASHAD) focuses on developing and upgrading infrastructure at pilgrimage sites, including sanitation, connectivity, amenities, and waste management and creating facilities for pilgrims, such as tourist information centres, interpretation centres, and spiritual learning centres. *SWADESH DARSHAN: - Focuses on creation of a robust framework for integrated development of tourism destinations in partnership with the states / UTs and local governments for promoting sustainable and responsible tourism in the country. The author, Anshuman Magazine is the chairman and CEO - India, South-East Asia, Middle East, and Africa, CBRE.

• By Anshuman Magazine ,
• Updated On Apr 24, 2024 at 01:00 PM IST

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How India’s economy has fared under ten years of Narendra Modi

Professor and Director, World Institute for Development Economics Research (UNU-WIDER), United Nations University

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Kunal Sen receives funding from ESRC, British Academy and DFID.

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More than 960 million Indians will head to the polls in the world’s biggest election between April 19 and early June. The ruling Bharatiya Janata Party (BJP), which is led by Prime Minister Narendra Modi, is seeking a third term in office. And the polls suggest it will achieve this objective.

If one was to go by economic growth figures alone, the Modi government’s performance has been impressive. When Modi came to power in 2014, economic growth was sluggish . A series of high-profile corruption cases led to a loss of investor confidence in the Indian economy.

But between 2014 and 2022, India’s gross domestic product (GDP) per capita (a measure of income per head) rose from US$5,000 (£4,000) to over US$7,000 – an increase of roughly 40% in eight years. These calculations use purchasing power parity, a way of comparing general purchasing power over time and between countries.

This growth occurred in spite of an ill-advised attempt early on in Modi’s first term to take ₹500 (£4.80) and ₹1000 (£9.60) notes out of circulation. Scrapping the notes led to an acute cash shortage, slowing the growth in per capita GDP from 6.98% in 2016 to 5.56% in 2017.

According to the International Monetary Fund, India’s economy is projected to grow at a rate of 6.5% in 2024. That is higher than China’s projected growth of 4.6%, and exceeds that of any other large economy. The UK’s economy, for example, is expected to grow by 0.6% in 2024.

However, recent estimates also suggest that inequality in India is at an all-time high . Growth, when it has occurred, has seemingly been unequal. A key challenge facing the Modi government in its next term will be to convert higher growth into productive jobs while also curbing the excess wealth of India’s economic and political elites.

All smoke and mirrors?

India’s economic performance is hard to assess as the government has not published official data on poverty and employment since 2011. This has led analysts to use alternate data sources that are not as reliable as the large and nationally representative consumption and employment surveys of the Indian government’s statistical agency.

As a consequence, one gets wildly varying estimates of poverty. Less than two months before the elections, the Indian government released a factsheet that suggests poverty in India had fallen to a historic low in 2022.

The results were based on a large consumption survey carried out by the Indian government. But the actual data behind the government’s estimates was not released for independent analysis.

The lack of transparency with data has led to a situation where no one really knows what the true estimates of poverty and inequality are. This is a sorry state for a country known for its pioneering household surveys that in the past were far ahead of their time.

The new welfarism

In its second term, the Modi government placed greater emphasis on delivering public goods and social welfare programmes in a less corrupt manner. This saw the launch of a massive rural road construction programme and the enrolment of roughly 99% of Indian adults in Aadhaar , a digital ID system linked to fingerprints and iris scans.

The Aadhaar rollout, in particular, has allowed national and state governments to distribute benefits to the poor directly through their Aadhaar-linked bank accounts. It has also helped to curb leakage in the delivery of subsidies to poor households, which has long been the bane of India’s welfare delivery.

Essential goods such as toilets and cooking cylinders, which are normally privately provisioned, were supplied in large numbers by the government. This led to what Indian economist and the former Chief Economic Advisor to the government, Arvind Subramanian , called “New Welfarism” in India.

The delivery of welfare programmes occurred most rapidly during the pandemic. For example, the government’s food subsidy bill increased by nearly five times between 2019–2020 and 2021–2022, ensuring people were able to access affordable food grains.

There have been other areas of success too. The proportion of Indian villages with access to electricity climbed from 88% in 2014 to 99.6% in 2020. And 71.1% of people in India now own an account at a financial institution, up from 48.3% in 2014.

These massive transfers of cash, along with the greater provision of goods and services to India’s poor, have led to the BJP enjoying increased popularity among marginalised groups. Historically, these groups have tended to vote for the opposition Congress Party.

The lack of good jobs

The Modi government has grown India’s economy. But it has not been as successful in creating productive jobs for the large proportion of India’s labour force who are unskilled and poor.

Around 40% of workers remain in agriculture, and only about 20% work in manufacturing jobs or business services such as IT. Pre-poll surveys suggest that increasing unemployment and inflation are sources of concern for many voters.

The weak record of the Modi government in creating jobs is surprising given that it has floated many initiatives to kickstart manufacturing. The Make in India programme, which was launched as soon as Modi came to power in 2014, aimed to reduce the costs of doing business in India.

This was followed by the more recent production-linked incentive scheme in November 2023. The scheme offered US$24 billion in industrial incentives to boost domestic production in key manufacturing sectors from electronic products to drones. However, manufacturing’s share of output remained the same in 2022 as it was when Modi first took office.

For India to emulate the labour-intensive industrialisation success of China, deeper structural reforms are needed in the country’s product, labour and credit markets. But this will be politically difficult to do as it involves taking on India’s powerful conglomerates and trade unions.

As the Modi government seeks a third term in office, a key challenge that lies ahead is creating productive jobs outside of agriculture for the country’s increasingly educated and aspirational youth.

• Economic growth
• social welfare
• Narendra Modi
• Bharatiya Janata Party
• India youth
• Give me perspective
• India election 2024

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India has the opportunity to lead the world in eco-tourism: experts.

By Nikhil DedhaNew Delhi [India], April 27 (ANI): India has a unique opportunity to lead the way in eco-tourism, setting itself apart from regions like Europe that have faced the consequences of mass tourism. With vast potential largely untapped, India's tourism sector stands poised for growth, particularly through eco-tourism initiatives.

The industry experts emphasized the urgent need for sustainable tourism in India amid the global shift towards sustainability in travel, spurred by concerns over carbon footprint, water consumption, and pollution.

"We have a unique advantage that our sites and destinations have not been destroyed or distorted by mass tourism the way we see in some places in Europe and other parts of the world. Our travel has to have minimal or zero carbon footprint, water consumption has to be within manageable limits," said Ram Pratap Singh, eco-tourism entrepreneur, to ANI.

He said, "The chemicals and pollutants that are generated by the travel and tourism industry, the hotel industry, have to be controlled and converted into green affluence. And then the impact on the community, the people, it has to generate wealth and well-being"The Ministry of Tourism has recognized the potential of sustainable tourism and formulated a 'National Strategy for Sustainable Tourism' to mainstream sustainability in the sector. Initiatives like the "Travel for LiFE" campaign aims to encourage responsible behaviour among domestic tourists, promoting mindful resource consumption while traveling.

Recent tourism data indicates a positive trend for India. In December 2023, over 10.7 lakh foreign tourists visited India, contributing a significant Rs 24,707 crore to the country's foreign exchange. However, the number of foreign tourist visits has declined in recent years, from 31.41 million in 2019 to 8.59 million in 2022, due to changing travel behaviours post-pandemic.

Despite this decline, eco-tourism presents an opportunity to attract foreign tourists back to India by offering sustainable travel experiences. With its pristine sites and destinations relatively untouched by mass tourism, India is well-positioned to capitalize on the global trend towards sustainable tourism.

According to industry experts, some of the famous Eco- tourism destinations in India are Sikkim -India's first fully organic state, Mawlynnong (Meghalaya)- one of the cleanest villages in Asia, Majuli in Assam, Matheran in Maharashtra and Thenmala (Kerala)- India's first ever eco-tourism destination.

ANI 27th April 2024, 21:03 GMT+10

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