India’s tourism sector is experiencing a revival — powered by its rich cultural heritage, booming eco-tourism, and strategic infrastructure investments. For foreign investors and tourism developers, this boom offers compelling opportunities in heritage circuits, eco-destinations, and immersive local experiences.
India’s Tourism Momentum at a Glance
Tourism in India has resurged to pre-pandemic levels. In FY23, the sector contributed 5% to GDP and generated 76 million jobs, while foreign exchange earnings reached USD 28 billion. International tourist arrivals (ITAs) also recovered strongly, accounting for 1.45% of global ITAs in 2023 (PIB).
Visitor spending has climbed even higher: in 2024, international travelers spent a record ₹3.1 trillion in India — 9% above the 2019 peak (WTTC). Projections suggest India’s travel and tourism economy will grow steadily, with the sector’s GDP contribution expected to rise to INR 43 trillion by 2028 and inbound tourism revenues reaching INR 5,086 billion (UJA).
Heritage Tourism: A Deep Well of Opportunity
India’s storied cultural legacy—with 43 UNESCO World Heritage Sites—anchors a vibrant heritage tourism market. Valued at an estimated USD 31.98 billion in 2024, it is expected to grow to USD 57.14 billion by 2033 at a CAGR of 6.8% (Grand View Research).
Government initiatives are aligning with this wave. Schemes like Swadesh Darshan and PRASAD prioritize tourism circuits—heritage, spiritual, eco, and rural—enhancing destination accessibility and infrastructure. For example, domestic tourist visits to Jammu & Kashmir surged nearly tenfold between 2020 and 2024, thanks to infrastructure investments under Swadesh Darshan (India Investment Grid).
Local success stories abound: the Chettinad Heritage Festival in Tamil Nadu has transformed abandoned Chettiar mansions into heritage hotels, boosting domestic tourism by 8% and generating nearly ₹2 million daily revenue while revitalizing local communities (The Guardian).
Eco-Tourism: Nature as an Investment Asset
Driven by environmental consciousness and experiential travel demand, India’s eco-tourism market, valued at USD 19.8 billion in 2024, is projected to more than double to USD 50.4 billion by 2033 (CAGR ~9.8%) (IMARC Group).
Eco-tourism is building on indigenous models—such as Hogenakkal Eco Tourism in Tamil Nadu, where community-driven initiatives like coracle rides and eco-trekking generate income for local villages and preserve ecological heritage. Kerala, too, stands out for its eco-tourism and nature-based stewardship, earning global recognition as an eco-hotspot and one of the world’s greatest places to visit.
Driving Infrastructure & Policy Support
The central government is enhancing tourism infrastructure through renewed momentum in schemes like Swadesh Darshan and focused budget allocations. In FY25, the Union Budget earmarked ₹2,541 crore for tourism infrastructure, skill development, and travel facilitation — including the development of 50 key destinations in collaboration with states (PIB).
State-level strategies are also reinforcing momentum. Telangana’s 2025–30 tourism policy aims to generate ₹15,000 crore in investments, 300,000 jobs, and raise tourism’s GDP share via 27 special tourism zones across heritage, eco, wellness, and spiritual themes (Times of India).
Risks & Considerations for Sustainable Growth
Rapid tourism growth comes with environmental and heritage risks. In Kerala’s Wayanad region, landslides exacerbated by unchecked tourism development tragically claimed over 200 lives — underscoring the necessity for sustainable planning complemented by environmental safeguards (Reuters).
Over-administration and planning challenges can also delay projects, as seen in Karnataka where tourism infrastructure under the Swadesh Darshan scheme is stalled due to heritage authority and environmental clearances (Times of India).
Why Invest Now? Strategic Advantages for Foreign Stakeholders
Key strategic advantages include:
- High-growth sectors: Heritage and eco-tourism are expanding rapidly, backed by projected double-digit growth rates.
- Government support: Central and state schemes prioritize infrastructure, connectivity, and state-specific tourism incentives.
- Community impact: Projects like in Chettinad or Hogenakkal illustrate how tourism can drive inclusive development.
- First-mover potential: Early entrants into niche, sustainable tourism can gain market leadership before competition intensifies.
With India’s tourism narrative shifting from mass attraction to immersive heritage and ecological experiences, international investors and hospitality developers have a unique window to craft lasting, sustainable, and high-value ventures. As India deepens its global investment links (see our analysis on Decoding India’s Outward Investment Trends), the role of cross-border partnerships will only grow.
How T&A Consulting Catalyzes Tourism-Forward Investments
T&A Consulting brings strategic consulting, stakeholder engagement, and execution support to foreign investors venturing into India’s heritage and eco-tourism sectors. We advise on regulatory navigation, sustainable site selection, value chain partnerships, and integration with national and state tourism schemes. From due diligence to community engagement and operational planning, we guide investors through India’s vibrant and complex tourism ecosystem — ensuring that heritage is preserved, ecosystems are enhanced, and ventures outperform.
Get Started on Your India Tourism Strategy
Ready to explore heritage circuits, eco-lodges, cultural festivals, or themed tourism investments in India? Let T&A Consulting help you define your entry strategy, identify high-potential destinations, and align with India’s sustainable tourism vision.
Contact our Travel & Tourism POC:
Arjun Mukundd
amukundd@taglobalgroup.com
Sources: Grand View Research, IMARC Group, WTTC, IBEF, PIB, India Investment Grid, UJA, Swadesh Darshan Scheme, The Guardian, Times of India, Reuters.