NEW DELHI— India’s tourism and hospitality sector is set to play a defining role in the nation’s economic future, with projections suggesting a GDP contribution of Rs 43.25 lakh crore and the creation of 63 million jobs by 2034, according to a new report by MP Financial Advisory Services.
The study ties these gains to the government’s ‘Vision 2047’ roadmap, which targets 100 million international tourist arrivals over the next two decades. It also pointed to India’s swift rise in global tourism rankings, climbing from 39th to 8th position within just a year, as evidence of its growing stature as a destination.
Foreign exchange earnings have mirrored this trajectory. Tourism revenues expanded from Rs 0.13 lakh crore in 1999 to Rs 2.12 lakh crore in 2019 before the pandemic slashed inflows to less than a third. By 2024, however, earnings had rebounded to Rs 2.78 lakh crore, underscoring both the sector’s resilience and the impact of targeted policy support.
“Tourism and hospitality are no longer just about leisure—they are core pillars of economic growth, job creation, and global competitiveness. The next decade will be defined by how effectively we invest in infrastructure, diversify offerings, and embrace sustainability,” said Mahendra Patil, Founder and Managing Partner of MP Financial Advisory Services LLP.
The rebound has been powered by robust domestic tourism, rising international arrivals, and initiatives such as Swadesh Darshan 2.0, PRASHAD, SASCI, and Heal in India. Spiritual travel has seen particularly strong growth, with pilgrim visits nearly doubling from 677 million in 2021 to 1,439 million in 2022, generating Rs 2 lakh crore in trade and creating more than 800,000 jobs. Medical tourism is also expanding rapidly, with the Medical Value Travel market projected to rise from $2.89 billion in 2020 to $13.42 billion by 2026. Heritage tourism, valued at $19.9 billion in 2024, is expected to reach $27.1 billion by 2033, supported by government schemes promoting cultural destinations.
The Union Budget for FY2025–26 has reinforced this momentum with measures to strengthen infrastructure, boost employment, and promote medical and wellness tourism. Between 1999 and 2019, International Tourist Arrivals grew from 2.5 million to 10.9 million, while Domestic Tourist Arrivals surged from 191 million to 2,321 million. In the same period, foreign exchange earnings expanded nearly sixteen-fold, laying the groundwork for long-term growth.
In FY2024, India’s tourism and hospitality industry contributed close to Rs 22 lakh crore to the economy—about 7 percent of GDP—backed by strong domestic demand and supportive policy measures. With Vision 2047 as a guiding framework, analysts say India now has the opportunity to position itself among the world’s top tourism destinations while making the sector a core pillar of inclusive economic development. (Source: IANS)
