Mumbai: India’s tourism sector is proving to be a powerful engine for growth. In 2024–25, it contributed 6.9% to the country’s gross domestic product (GDP) and supported over 43 million jobs, according to the India Tourism Data Compendium 2025. With service industries expanding rapidly, travel and hospitality are playing a bigger role in shaping the economy.
Foreign exchange earnings from tourism rose by 15% to ₹2.6 lakh crore, driven mainly by domestic travellers. Government officials say tourism has become a model for post-pandemic recovery and a key part of inclusive development. It’s not just about holidays – it’s about jobs, local businesses, and preserving culture.
Across India, the benefits are visible. In Rajasthan, artisans making block-printed textiles and jewellery have seen higher sales thanks to more tourists. In Kerala, homestay owners in Alleppey and Wayanad are welcoming more domestic guests looking for authentic experiences. In the Northeast, eco-tourism projects in Meghalaya and Nagaland are creating new income sources, especially for women and young people.
Tourism-related jobs cover a wide range – from hotels and restaurants to transport, handicrafts, and entertainment. But the compendium notes that nearly 15% of these jobs are informal, raising concerns about job security and fair wages. Experts say that as the sector grows, it’s important to focus on skill development and formal employment.
The government is now linking tourism with broader economic goals, including infrastructure, digital services, and sustainability. Programmes like Swadesh Darshan 2.0 and PRASHAD aim to improve facilities at heritage and religious sites. Eco-certification schemes are encouraging hotels to adopt greener practices. Officials point out that tourism’s ripple effect helps small businesses and rural communities too.
Real-world examples show how this works. In Varanasi, the redevelopment of the Kashi Vishwanath corridor has boosted demand for hotels, restaurants, and transport – and increased sales of local crafts. In Goa, cruise tourism is creating jobs for port workers, taxi drivers, guides, and shopkeepers. In Himachal Pradesh, adventure tourism is supporting gear rental businesses and training centres for trekking and rafting.
Industry leaders believe India’s mix of heritage, spirituality, wellness, and adventure gives it a strong edge globally. They say the challenge is to manage growth responsibly so that it benefits everyone.
Looking ahead to 2026, the outlook is positive. Global travel is expected to grow, and analysts believe tourism’s share of GDP could rise further – if infrastructure and policy support continue. Hospitality executives say traveller confidence in India is returning, and the goal now is to turn that momentum into long-term, sustainable growth.
The compendium ends on a hopeful note: tourism is not just bouncing back – it’s evolving. For businesses, policymakers, and communities, the message is clear. Tourism is once again a vital part of India’s economy and a bridge for cultural exchange.
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