India’s Tourism Sector: A Historic Leap on The Global Stage
According to the 2024 Economic Impact Trends Report by the World Travel and Tourism Council (WTTC), India has emerged as the 8th largest tourism economy in the world. In 2023, India was at the 10th position, but in 2024–25, it moved up by two spots with a tourism contribution of $231.6 billion, overtaking countries like Italy ($231.3B) and Spain ($227.9B).
Key Facts Related to India’s Tourism Sector:
Economic Contribution: $231.6 billion | Global Rank: 8th
Employment Generated: 46.5 million jobs | Share in India's Total Employment: 9.1%
International Tourist Arrivals: 20 million (up by 2.3 million from 2019)
International Tourist Spending: ₹3.1 lakh crore (9% above 2019 levels)
Domestic Tourist Spending: ₹15.5 lakh crore (22% above 2019 levels)
Key Highlights from the WTTC 2024 Economic Impact Trends Report
As per the WTTC 2024 report, the global travel and tourism economy reached $10.9 trillion in 2023, with estimates suggesting that it will touch $16 trillion by 2034, making up over 11% of global GDP.
Top 10 Global Tourism Economies in 2024–25:
| Rank | Country | Economic Contribution (in US$) |
|---|---|---|
| 1 | United States | $2,360 billion |
| 2 | China | $1,300 billion |
| 3 | Germany | $487.6 billion |
| 4 | Japan | $297 billion |
| 5 | United Kingdom | $295.2 billion |
| 6 | France | $264.7 billion |
| 7 | Mexico | $261.6 billion |
| 8 | India | $231.6 billion |
| 9 | Italy | $231.3 billion |
| 10 | Spain | $227.9 billion |
The WTTC projects that India is likely to reach the 4th position within the next decade, and China may surpass the US to take the top spot.
India's Performance in the Travel & Tourism Development Index (TTDI) 2024
India secured the 39th rank among 119 countries in the Travel & Tourism Development Index 2024, released by the World Economic Forum (WEF). This is a significant improvement from the previous 54th rank in 2021. Adjustments in methodology revised India’s 2021 rank to 38, showing stable progress.
Top 5 Countries in TTDI 2024:
| Rank | Country | Score |
|---|---|---|
| 1 | United States | 5.24 |
| 2 | Spain | 5.18 |
| 3 | Japan | 5.09 |
| 4 | France | 5.07 |
| 5 | Australia | 5.00 |
Key Strengths of India in TTDI 2024:
Price Competitiveness: Ranked 18th
Air Transport Infrastructure: Ranked 26th
Ground and Port Infrastructure: Ranked 25th
Natural Resources: 6th globally
Cultural Resources: 9th globally
Non-Leisure Resources: 9th globally
India is one of only three countries to rank in the top 10 across all resource-related pillars, according to the WEF.
Swadesh Darshan 2.0: India's Tourism Infrastructure Reboot
The Swadesh Darshan scheme, initiated in 2014-15 for theme-based tourist circuit development, faced limited success due to the wide distribution of resources across states and the involvement of many stakeholders. Hence, it has been reimagined as Swadesh Darshan 2.0, focusing on developing one destination at a time.
Key Features of Swadesh Darshan 2.0:
Vision: To develop sustainable and responsible tourism destinations
Mantra: Vocal for Local & Atmanirbhar Bharat
Identified Destinations: 57 sites
Approved Projects: 34 projects, ₹793.20 crore sanctioned
Mission Areas: Infrastructure, human capital, destination management, and promotion
Examples of Prominent Destinations Being Developed:
Hampi (Karnataka)
Dholavira & Dwarka (Gujarat)
Bundi & Jodhpur (Rajasthan)
Sindhudurg & Ajanta-Ellora (Maharashtra)
Jhansi & Prayagraj (Uttar Pradesh)
Tourism’s Economic and Employment Impact in India
India’s tourism sector has shown strong post-pandemic recovery, led by growth in domestic tourism.
Major Tourism Contributions in 2024:
GDP Contribution (2023): ₹19.13 lakh crore (10% higher than 2019)
Total Employment: 46.5 million
Employment Projected in 2025: Over 48 million
Projected Worker Demand (2036–37): 61.3 million
Jobs in 2022–23: 76.17 million (direct + indirect)
Future Economic Projections:
2024 Tourism Economy: ₹21.15 lakh crore
2025 Forecast: Exceeding ₹22 lakh crore
2035 Estimate: Close to ₹42 lakh crore
Global Tourism Trends and Recovery Outlook
By 2024, international tourist arrivals worldwide reached 1.4 billion, nearly 99% of pre-pandemic levels.
Key Indicators of Global Tourism Recovery:
International Tourism Receipts: $1.6 trillion
Total Tourism Exports: Record $1.9 trillion
Average Spend per Tourist: $1,100
Global Tourism Jobs: 357 million
In India, international tourist spending reached ₹3.1 lakh crore, 9% higher than 2019, while domestic spending rose to ₹15.5 lakh crore—22% higher than pre-COVID levels.
Government Initiatives and Policy Support
Recent Government Schemes and Measures:
Tourism @2047 Vision – Objective of welcoming 100 million inbound tourists by 2047
Challenge-Based Destination Development – 42 sites selected including 5 from Vibrant Villages
UDAN (Regional Connectivity Scheme) – Over 519 tourism air routes operational
Granting Industry Status to Tourism – Guidelines issued for states
Digital Empowerment – Incredible India portal and content hub launched
Budget 2025–26 Allocation for Tourism:
Total Allocation: ₹2,541.06 crore
Key Focus: Holistic development of the top 50 destinations
Skilling & Employment: Training programs, MUDRA loans for homestays
Connectivity & Promotion: Infrastructure and digital tourism enhancement
Challenges and Opportunities for India’s Tourism Sector
Key Challenges:
Inadequate Infrastructure in remote locations
Shortage of trained tourism professionals
Visa delays, particularly for long-haul markets like the US
Need for sustainable practices to protect natural heritage
Key Opportunities:
Medical tourism: ~$9 billion market
Spiritual & Cultural tourism: Over 60% of domestic travel is religious
Adventure and Eco-tourism: Rising demand from millennials
Tier 2 & Tier 3 Cities: Becoming future tourism hubs
Why this matters for your exam preparation
For UPSC Prelims:
Important reports and indices: WTTC, TTDI
Tourism-related government schemes: Swadesh Darshan 2.0, PRASHAD
Geography and Economy: Role of tourism in national development
For UPSC Mains:
GS Paper 3 (Economy): Tourism as a GDP and employment contributor
GS Paper 1 (Geography): Natural & cultural resources in tourism
GS Paper 2 (Governance): Centre–State coordination, tourism policy
Essay Paper: Sustainable and inclusive tourism as a path to development
For State PCS and Other Competitive Exams:
Tourism initiatives at the regional/state level
Employment and skilling in tourism
Preservation of cultural and natural heritage
Green and responsible tourism strategies
✅ Conclusion:
India’s rising position in the global tourism economy not only showcases economic strength but also reflects policy innovation, cultural resilience, and global visibility. For aspirants, this topic links economics, governance, geography, and public policy — all major pillars of exam success.
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