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Tourism and Hospitality Industry in India: Growth & Outlook

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Advantage India

Robust
Demand

*WTTC has revealed that international visitor spend in India reached a record Rs. 3,10,000 crore (US$ 36.05 billion) in 2024.

*India’s expanding middle class and young, digitally engaged population are positioning the country as a key driver of global leisure travel growth, according to a report published by BCG in June 2025.

*Indian hotels are tapping into the wellness tourism boom, with wellness tourism projected to be a US$ 1.3 trillion global market by 2025. In India, wellness tourism is growing strongly driven by health awareness and lifestyle shifts post-pandemic, with a focus on wellness packages that have boosted occupancy by 36% in some properties.

Robust Demand

Attractive
Opportunities

*India offers geographical diversity, world heritage sites and niche tourism products like cruises, adventure, medical, eco-tourism, etc. Incredible India has spurred growth in tourist arrivals and employment.

*New GST reforms were implemented in India aimed at making travel more affordable, especially for budget and mid-range segments. The reforms reduced taxes on hotels, domestic flights, dining, and tourism activities, resulting in an expected boost in domestic travel and tourism entrepreneurship.

Attractive Opportunities

Policy
Support

* India’s Union Budget FY26 has allocated Rs. 2,541.06 crore (US$ 291.07 million) to boost its tourism sector, focusing on improving infrastructure, skill development, and travel facilitation through measures like developing 50 top tourist destinations, offering MUDRA loans for homestays, enhancing connectivity, and introducing e-visa facilities.

* As of January 2025, the Ministry of Tourism sanctioned 52 projects under Swadesh Darshan 2.0 and 36 under CBDD, plus 40 large projects under SASCI.

* UDAN’s third round added 106 tourism routes, with 53 operational by January 31, 2025, and plans to link 120 destinations serving 40 million passengers in the next decade.

Policy Support

Diverse
Attractions

* India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure.

* According to the Skift+FICCI report (March 2025), cultural and heritage tourism motivates 59% of international travelers to India. This segment has an estimated revenue potential of US$ 21.9 billion as of 2025.

* According to the Skift+FICCI report (March 2025), culinary tourism motivates 56% of travelers to India. The segment’s revenue potential is estimated at nearly Rs. 1,83,771 crore (US$ 21 billion), closely rivaling cultural tourism.

Diverse Attractions
Last updated: Feb, 2026

States with Largest Domestic Tourist Arrivals in 2021

  • Tamil Nadu
  • Uttar Pradesh
  • Andhra Pradesh
  • Karnataka
  • Maharashtra
  • Telangana
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