The tourism and hospitality industry in India is a key driver of economic growth as it has a multiplier effect. The travel and tourism industry’s contribution to the GDP is expected to reach USD 512 billion by 2028 from USD 121.9 billion in 2020. In India, the industry’s direct contribution to the GDP is expected to record an annual growth rate of 10.35% between 2019 and 2028.

India’s geographical location offers multiple advantages as a tourist destination. The country has huge geographical diversity, is host to many world heritage sites, and offers niche tourism products like cruises, adventure, medical, eco-tourism, etc.

India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum, and its tourism industry is the third-largest foreign exchange earner for the country. The sector received a cumulative FDI inflow of USD 15.89 billion between April 2000 and June 2021.

While the Covid-19 pandemic had a crippling effect on the tourism and hospitality industry, signs of recovery are already visible. In FY20, Indian tourism accounted for 39 million jobs—8.0% of the total employment in the country. By 2029, it is expected to account for about 53 million jobs. Additionally, tourism also encourages the development of infrastructure like hotels, resorts and restaurants, transport infrastructure (aviation, roads, shipping & railways), and healthcare facilities.