According to the World Travel & Tourism Council (WTTC), India’s international visitor spend reached a new high of ₹3.1 trillion in 2024, a 9% increase from the previous record set in 2019. This surge in spending is part of a broader recovery and expansion in the travel and tourism sector, which has rebounded strongly from the impacts of the global pandemic.
The WTTC’s latest Economic Impact Research (EIR) indicates that the revival of international tourism, coupled with robust domestic travel, is ushering in a new era of growth for India’s economy. Domestic travel spending also showed significant growth, reaching ₹15.5 trillion, a 22% increase over 2019.
Economic and Employment Boost
The travel and tourism sector contributed nearly ₹21 trillion to the Indian economy in 2024, 20% more than in 2019. This sector not only boosts GDP but also plays a crucial role in employment, supporting nearly 46.5 million jobs, which accounts for 9.1% of India’s total employment.
Infrastructure improvements, such as high-speed rail and smart mobility solutions, are essential for maximizing the sector’s potential and increasing its contribution to the GDP to between 10-11%.
International Confidence and Policy Support
In 2024, India welcomed 20 million international visitors, an increase of 2.3 million from 2019, reinforcing the country’s status as a premier global destination. This achievement highlights the renewed international confidence in India’s tourism offerings.
However, the WTTC has expressed concerns over recent government decisions to cut funding for overseas tourism promotion. The council emphasizes the need for continued investment and targeted policy support to sustain growth. It also advocates simplifying the e-visa process to facilitate easier access for international tourists, further boosting visitor numbers and spending.
Business Travel and Future Outlook
Business travel in India has also seen record growth, with combined domestic and international spending reaching ₹1.1 trillion last year, surpassing the 2019 peak by 2.6%. Looking ahead, the WTTC forecasts continued growth, with the economic contribution of travel and tourism expected to exceed ₹22 trillion in 2025 and potentially reach nearly ₹42 trillion by 2035. Employment in the sector is projected to grow to more than 48 million by 2025 and nearly 64 million by 2035.
Conclusion
India’s travel and tourism sector is on a rapid growth trajectory, driven by both international and domestic factors. With strategic investments and supportive policies, India is poised to become one of the world’s most dynamic tourism economies. This growth presents significant opportunities for homegrown entrepreneurship, especially in luxury travel, and underscores the importance of innovative and supportive government policies to sustain this momentum.
