Pilgrimage circuits and heritage tourism sector in India attract record visitors in 2024–25

Mumbai: India’s heritage and spiritual tourism sector recorded unprecedented growth in 2024–25, with pilgrimage circuits across the country witnessing record footfalls, according to the India Tourism Data Compendium 2025. The figures underline the enduring appeal of spiritual travel in India, which continues to be a cornerstone of domestic tourism while also attracting international visitors seeking cultural immersion.

The Char Dham circuit in Uttarakhand reported its highest ever visitor numbers, with millions of devotees making the journey to Kedarnath, Badrinath, Gangotri and Yamunotri. The Kashi Vishwanath corridor in Varanasi, redeveloped in recent years, drew large crowds from across India and abroad. The newly inaugurated Ram temple in Ayodhya became a major attraction, with footfalls exceeding expectations in its first year of operation. Bodh Gaya in Bihar, a centre of Buddhist pilgrimage, also saw increased international visitors, particularly from Southeast Asia.

Local economies have benefited significantly from this surge. In Varanasi, hotels and guesthouses reported occupancy rates above 90 per cent during peak seasons, while restaurants and transport operators saw sharp increases in demand. Artisans producing brassware and silk textiles noted higher sales, with many visitors purchasing souvenirs linked to religious traditions. In Uttarakhand, homestay owners along the Char Dham route reported steady bookings, while small businesses providing trekking and transport services thrived. Pilgrimage tourism has provided a stable source of income in regions such as Rudraprayag, with visitors staying longer and spending more on local services.

Officials attribute the growth to improved infrastructure and government initiatives. Roads leading to major pilgrimage sites have been widened, sanitation facilities upgraded and digital booking systems introduced to manage crowds. These measures are designed to make spiritual journeys more accessible and comfortable, while also preserving the sanctity of the sites.

International visitors have also contributed to the rise. Buddhist pilgrims from Thailand, Myanmar and Sri Lanka have flocked to Bodh Gaya and Sarnath, while Christian visitors from Europe and North America have shown interest in Kerala’s church circuits. India’s unique blend of spirituality and culture has drawn global travellers, with experiences such as meditation at Bodh Gaya seen as distinctive and irreplaceable.

Concerns have emerged about the impact of rising numbers. Fragile heritage structures and ecosystems face risks, with overcrowding at sites such as Kedarnath raising issues of waste management and environmental stress. Conservationists emphasise that tourism growth must be balanced with preservation, warning that without adequate infrastructure and conservation measures, the gains could be undermined.

The government has pledged to strengthen preservation efforts. Initiatives include eco‑friendly facilities, stricter visitor management systems and community‑based tourism projects that involve local residents in maintaining sites. The stated aim is not only to increase numbers but also to ensure that tourism benefits local communities while safeguarding cultural and natural heritage.

Case studies highlight the potential of pilgrimage tourism to drive regional development. In Ayodhya, the construction of the Ram temple has spurred investment in hotels, transport and retail, creating jobs and boosting local businesses. In Uttarakhand, the Char Dham circuit has led to improvements in road connectivity and healthcare facilities, benefiting residents as well as visitors. In Bihar, international interest in Buddhist sites has encouraged the state government to invest in airports and hospitality infrastructure.

Analysts note that pilgrimage tourism reflects broader social changes. Travel is increasingly seen as a form of self‑expression and spiritual fulfilment, rather than a purely religious obligation. Social media has amplified this trend, with platforms such as Instagram and YouTube influencing destination choices. Younger travellers are particularly drawn to experiences they can share online, whether trekking to Kedarnath or visiting the Ram temple.

The compendium concludes that heritage and spiritual tourism will remain a key driver of growth in India’s travel economy. With global interest in cultural and spiritual experiences expected to rise, India is well positioned to consolidate its gains if infrastructure and policy support continue. For businesses, policymakers and communities alike, the message is clear – pilgrimage tourism is not only expanding in scale but also diversifying in nature, laying the foundation for sustained growth in the years ahead.

Cruises, trekking, rafting and safaris surge among India’s tourists in 2024–25

Mumbai: India’s coastline and diverse terrain have fuelled strong growth in cruise and adventure tourism, with passenger traffic rising by 18 per cent and adventure activities recording a 22 per cent increase in 2024–25, according to the India Tourism Data Compendium 2025. The figures highlight how travellers are increasingly seeking experiences beyond traditional sightseeing, turning to cruises, trekking, rafting and wildlife safaris to explore the country’s varied landscapes.

Ports in Mumbai, Goa and Kochi have been upgraded to handle larger vessels, with new cruise itineraries introduced along the western coast and into the Lakshadweep islands. International cruise operators have shown interest in expanding routes to India, encouraged by rising demand from both domestic and foreign travellers. Cruise tourism is no longer confined to a niche segment, with families, retirees and younger travellers increasingly choosing cruises as part of their holiday plans.

Regional examples illustrate the breadth of this growth. In Goa, cruise operators reported record bookings during the winter season, with packages combining coastal sightseeing, cultural performances and culinary experiences. In Kerala, backwater cruises have drawn international visitors seeking slower, immersive journeys. In Mumbai, short‑haul cruises to coastal destinations such as Diu and Lakshadweep have become popular among domestic travellers, offering a refreshing alternative to road travel and providing a different perspective on the coastline.

Adventure tourism has expanded rapidly in Himalayan states. Trekking routes in Himachal Pradesh, Uttarakhand and Ladakh reported heavy traffic, with younger travellers particularly drawn to high‑altitude trails. Rafting in Rishikesh and wildlife safaris in Madhya Pradesh and Assam also saw strong demand. Local businesses providing equipment rentals, guides and transport services benefited from the surge, with adventure tourism creating jobs for young people and offering livelihoods that allow communities to share their connection with the mountains.

Industry leaders point out that adventure tourism reflects changing preferences among travellers. Increasingly, people are seeking experiences that challenge them physically and connect them with nature. Adventure tourism is seen as offering both excitement and authenticity, which explains its rapid growth.

The economic impact of cruise and adventure tourism is visible across sectors. Hotels in coastal and mountain regions reported higher occupancy rates, while restaurants and transport operators saw increased demand. Artisans producing local crafts benefited from sales to tourists seeking souvenirs. In Ladakh, homestay owners reported steady bookings from trekkers, while in Goa, small businesses offering cultural performances and local cuisine thrived.

Pressure points are becoming visible though. Popular trekking corridors are straining under overcrowding, while cruise operators face mounting waste‑management concerns. Conservationists warn that unchecked expansion risks turning adventure tourism into an environmental liability. Sustainability must be embedded at the core, or the fragile ecosystems that attract visitors could be irreparably harmed.

The government has responded with pledges to embed responsibility into growth. Plans include eco‑friendly infrastructure along trekking routes, stricter waste‑control systems on cruises, and community‑based projects that empower local residents to safeguard sites. The stated objective is clear: tourism must generate livelihoods while protecting natural heritage, ensuring growth does not come at the cost of conservation.

Analysts see cruise and adventure tourism as enduring engines of India’s travel economy going forward. With global interest in experiential travel expected to rise, India is well positioned to consolidate its gains if infrastructure and policy support continue. The compendium underscores that expansion is not only about scale but also diversification, laying the groundwork for sustained, balanced growth in the years to come.

Eco‑tourism gains momentum as demand for sustainable travel rises across India

Mumbai: Eco‑tourism has emerged as one of the fastest‑growing segments of India’s travel economy, with the India Tourism Data Compendium 2025 noting a sharp rise in demand for sustainable travel experiences. Hotels adopting eco‑certification, national parks implementing stricter conservation practices and communities engaging directly with visitors have all contributed to this momentum. The figures reflect a shift in traveller preferences, with both domestic and international tourists increasingly seeking experiences that minimise environmental impact while supporting local livelihoods.

Officials highlight that eco‑tourism projects in states such as Kerala, Sikkim, Madhya Pradesh and Meghalaya have seen strong growth. In Kerala, backwater resorts have introduced renewable energy systems and waste‑management programmes, while homestays in Wayanad promote organic farming and nature‑based activities. 

In Sikkim, the state’s long‑standing commitment to organic agriculture has been integrated into tourism, with visitors encouraged to participate in farm stays and community projects. Madhya Pradesh has expanded eco‑tourism in its tiger reserves, introducing regulated safari bookings and eco‑friendly lodges. Meghalaya’s promotion of living root bridges and community‑run trekking routes has drawn younger travellers keen on sustainable adventure.

Local communities have benefited directly from these initiatives. In Assam’s Kaziranga National Park, villagers involved in eco‑tourism projects have reported higher incomes from guiding, handicrafts and hospitality, noting that tourism has provided livelihoods while encouraging environmental protection. In Uttarakhand, community‑based trekking projects have created jobs for young people while reducing pressure on fragile ecosystems. In Ladakh, eco‑friendly homestays have allowed families to earn additional income while preserving traditional architecture and culture.

Industry leaders point out that eco‑tourism reflects changing preferences among travellers. They observe that people increasingly seek experiences that connect them with nature and communities rather than mass tourism. Eco‑tourism is seen as offering authenticity and sustainability, which explains its rapid growth.

The economic impact of eco‑tourism is visible across sectors. Hotels and resorts adopting eco‑certification report higher occupancy rates, while local businesses supplying organic produce and handicrafts benefit from increased demand. In Kerala, farmers providing organic food to eco‑resorts have reported higher incomes. In Meghalaya, artisans producing bamboo crafts have seen increased sales to tourists seeking sustainable souvenirs.

Yet challenges persist. Conservationists warn that eco‑tourism risks sliding into a hollow marketing slogan unless backed by genuine sustainability. They argue that without strict enforcement of standards, the sector’s credibility could erode rapidly. Fragile ecosystems – from Himalayan trekking corridors to coastal mangroves – continue to grapple with inadequate waste management and unchecked visitor flows, underscoring the urgent need for discipline and accountability.

The government has pledged to strengthen eco‑tourism through stricter certification, community participation and infrastructure investment. Initiatives include eco‑friendly facilities at national parks, renewable energy adoption in resorts and training programmes for local communities. Officials emphasise that the aim is not just to increase numbers but to ensure that tourism benefits local communities while preserving natural heritage. They underline that eco‑tourism must balance growth with conservation.

Case studies highlight the potential of eco‑tourism to drive regional development. In Sikkim, farm stays have encouraged visitors to engage with organic agriculture, creating new markets for local produce. In Madhya Pradesh, eco‑lodges near tiger reserves have created jobs while supporting conservation. In Meghalaya, community‑run trekking routes have empowered villagers to manage tourism sustainably.

Analysts note that eco‑tourism reflects broader social changes. Travel is increasingly seen as a form of self‑expression and responsibility, with younger travellers particularly conscious of environmental impact. Social media has amplified this trend, with platforms such as Instagram and YouTube influencing destination choices. Younger travellers are drawn to experiences they can share online while ensuring that their choices remain responsible.

Looking ahead, the compendium concludes that eco‑tourism will remain a key driver of growth in India’s travel economy. With global interest in sustainable travel expected to rise, India is well positioned to consolidate its gains if infrastructure and policy support continue. For businesses, policymakers and communities alike, the message is clear – eco‑tourism is not only expanding in scale but also diversifying in nature, laying the foundation for sustained growth in the years ahead.

Flagship schemes drive tourism infrastructure, engagement and growth across India

Mumbai: Government programmes have played a decisive role in shaping India’s tourism trajectory, with flagship schemes such as Dekho Apna Desh, Swadesh Darshan 2.0 and PRASHAD credited for significantly improving infrastructure and tourist engagement in 2024–25. The India Tourism Data Compendium 2025 highlights how these initiatives have expanded accessibility, promoted lesser‑known destinations and enhanced visitor experiences, ensuring that growth is not confined to a handful of states but spread across the country.

Dekho Apna Desh, launched to encourage Indians to explore domestic destinations, has been instrumental in broadening travel choices beyond traditional hotspots. The campaign has inspired families and younger travellers from tier‑2 and tier‑3 cities to visit heritage sites, pilgrimage centres and eco‑tourism projects. More people from smaller towns are now taking trips to destinations that were previously overlooked, creating awareness and pride in exploring the country.

Swadesh Darshan 2.0 has focused on developing thematic circuits, including Buddhist, coastal and desert routes. In Bihar, investment in Buddhist circuits has improved facilities at Bodh Gaya and Rajgir, attracting international pilgrims from Southeast Asia. In Gujarat, coastal circuits have promoted destinations such as Dwarka and Somnath, while desert circuits in Rajasthan have enhanced infrastructure in Jaisalmer and Bikaner. Local businesses have benefited from increased demand for accommodation, transport and handicrafts, with artisans finding new opportunities as visitors purchase their products, thereby supporting families and livelihoods.

PRASHAD, aimed at improving facilities at pilgrimage sites, has transformed destinations such as Varanasi, Ayodhya and Puri. The redevelopment of the Kashi Vishwanath corridor in Varanasi has boosted demand for hotels, restaurants and transport services, while also increasing sales of local crafts. In Ayodhya, the construction of the Ram temple has spurred investment in hospitality and retail, creating jobs and strengthening local businesses. In Puri, improved sanitation and visitor facilities have enhanced the experience for pilgrims and tourists alike.

Regional examples illustrate the impact of these schemes. In the Northeast, investment in infrastructure has promoted eco‑tourism projects in Meghalaya and Nagaland, creating jobs for local communities. In Kerala, backwater destinations have benefited from improved connectivity and eco‑friendly facilities. In Himachal Pradesh, adventure tourism has thrived with better roads and regulated trekking routes. Government support has enabled homestay operators and local businesses to serve larger numbers of tourists with improved services.

Industry leaders emphasise that government intervention has been crucial in shaping India’s tourism growth. Without investment in infrastructure and promotion, many destinations would not have been able to attract visitors. These schemes have created a foundation for sustainable expansion across the sector.

The economic impact is visible across industries. Hotels and restaurants in redeveloped circuits report higher occupancy rates, while local businesses supplying food, crafts and transport have seen increased demand. Farmers providing organic produce to eco‑resorts in Kerala have reported higher incomes, while artisans in Rajasthan and Uttar Pradesh have benefited from sales to tourists seeking souvenirs.

Challenges remain, however. Analysts caution that growth must be balanced with sustainability. Overcrowding at popular sites has raised concerns about visitor management, while environmental stress in fragile ecosystems has been noted. Tourism growth must not come at the expense of heritage and environment, and safeguards are essential to ensure that gains are not undermined.

The government has acknowledged these concerns and pledged to strengthen preservation efforts. Initiatives include eco‑friendly facilities, stricter visitor management systems and community‑based tourism projects that involve local residents in maintaining sites. The aim should not just be to increase numbers but also ensure that tourism benefits local communities while preserving cultural and natural heritage.

Looking ahead, the compendium concludes that government schemes will remain a key driver of growth in India’s travel economy. With global interest in cultural and spiritual experiences expected to rise, India is well positioned to consolidate its gains if infrastructure and policy support continue. For businesses, policymakers and communities alike, government intervention has created a foundation for sustained expansion, offering both economic opportunity and cultural enrichment.

India’s exports to US slump under steep tariff hikes, $3.3 billion wiped out May–Sept 2025

Mumbai: India’s exports to the United States have experienced a significant downturn, marking one of the sharpest short-term declines in recent years. Between May and September 2025, exports to the US fell by 37.5 per cent, dropping from $8.8 billion to $5.5 billion. This decline comes in the wake of steep tariff hikes imposed by the US government, which began at 10 per cent on April 02, 2025, escalated to 25 per cent on August 07, 2025, and reached a punitive 50 per cent by late August 2025. The Global Trade Research Initiative (GTRI) has analysed the impact of these tariffs, revealing a widespread contraction across various sectors.

Surprisingly, tariff-free products, which account for nearly one-third of India’s total shipments to the US, suffered the most severe contraction. Exports in this category fell by 47 per cent, from $3.4 billion in May to $1.8 billion in September. Among the hardest-hit products were smartphones and pharmaceuticals, both of which are key beneficiaries of India’s Production Linked Incentive (PLI) manufacturing programme. 

Smartphone exports, which had seen a remarkable 197 per cent surge between April and September 2024 compared to the same period in 2025, plummeted by 58 per cent during the review period. Monthly shipments fell consistently, from $2.29 billion in May to $884.6 million in September. The reasons behind this sharp decline remain unclear and warrant further investigation. Pharmaceutical exports also experienced a notable drop, slipping by 15.7 per cent from $745.6 million to $628.3 million, despite being exempt from tariffs.

In contrast, sectors subject to uniform tariffs for all countries, such as industrial metals and auto parts, showed a milder decline. Exports in these categories fell by 16.7 per cent, from $0.6 billion to $0.5 billion. Within this group, aluminium exports dropped by 37 per cent, copper by 25 per cent, auto parts by 12 per cent, and iron and steel by 8 per cent. The relatively smaller contraction in these sectors suggests that the decline may be more closely linked to a slowdown in US industrial activity rather than a loss of competitiveness for Indian exporters.

The most severe impact was felt in labour-intensive sectors, which were subjected to the 50 per cent India-specific tariffs. These sectors, including textiles, gems and jewellery, chemicals, agri-foods, and machinery, collectively account for nearly 60 per cent of India’s exports to the US. Exports in these categories fell by 33 per cent, from $4.8 billion in May to $3.2 billion in September. 

Within this group, gems and jewellery exports were particularly hard-hit, collapsing by 59.5 per cent from $500.2 million to $202.8 million. Gold jewellery exports fell by 58 per cent, diamond-studded pieces by 63 per cent, and lab-grown jewellery by 37 per cent. Exports of cut and polished diamonds dropped by 54 per cent, while lab-grown diamond exports plunged by a staggering 89 per cent. The decline has severely impacted manufacturing hubs in Surat and Mumbai, as competitors from Thailand and Vietnam have captured lost US orders.

Solar panel exports also suffered a sharp decline, falling by 60.8 per cent from $202.6 million to $79.4 million. India’s competitiveness in the renewable energy sector has been eroded, particularly as China and Vietnam face lower tariffs of 30 per cent and 20 per cent, respectively. Textiles and garments, another key labour-intensive sector, saw exports fall by 37 per cent, from $944 million to $597 million. Within this category, garments experienced a 44 per cent decline, home textiles fell by 16 per cent, and yarn and fabrics dropped by 41 per cent. Knitted apparel exports decreased by 39 per cent, woven apparel by 50 per cent, and girls’ suits by 66 per cent.

Chemical exports also faced a significant downturn, shrinking by 35 per cent from $537 million to $350 million. Agrochemicals fell by 37 per cent, while essential oils dropped by 44 per cent. This decline has adversely affected production hubs in Vapi, Dahej, Ankleshwar, and Vizag, which are home to major firms such as UPL and Rallis India, as well as numerous micro, small, and medium enterprises (MSMEs) in Maharashtra and Karnataka.

Marine and seafood exports, another labour-intensive sector, declined by 49 per cent, from $223 million to $113 million. Vannamei shrimp exports fell by 51 per cent, while processed seafood dropped by 22 per cent. Coastal hubs such as Nellore, Bhimavaram, Kakinada, Paradeep, Veraval, and Porbandar have been severely impacted, as buyers have shifted their focus to competitors in Ecuador and Vietnam.

Agricultural and processed food exports also recorded a broad-based slump. Preparations of cereals fell by 27 per cent, processed fruits and vegetables by 44 per cent, roots and tubers by 45 per cent, cocoa products by 99 per cent, oilseeds by 53 per cent, dairy and honey by 59 per cent, processed foods by 35 per cent, coffee and spices by 40 per cent, and resins by 61 per cent. These losses have had a devastating impact on agricultural clusters in regions such as Nashik, Gujarat, Kerala, Karnataka, Jharkhand, and Chhattisgarh, erasing two years of steady growth.

The sharp decline in exports has prompted calls for urgent government intervention. Exporters are urging authorities to implement targeted relief measures to mitigate the impact of the tariffs. Proposed actions include enhanced interest-equalisation support to reduce financing costs, faster duty remission to alleviate liquidity pressures, and emergency credit lines for MSME exporters. Without swift and decisive action, India risks losing its market share to competitors such as Vietnam, Mexico, and China, even in sectors where it has traditionally held a strong position.

The data presented in the GTRI report underscores the significant impact of the US tariffs on India’s export performance. The tariffs have not only squeezed trade margins but have also exposed structural vulnerabilities across key industries. As the situation continues to unfold, it remains imperative for policymakers to address these challenges and support exporters in navigating the difficult terrain ahead.