India’s hospitality sector is poised to deliver a staggering Rs 43.25 lakh crore to the nation’s GDP and create 63 million jobs by 2034, according to a report by MP Financial Advisory Services. The projection comes on the back of the government’s ambitious ‘Vision 2047’, which sets a target of 100 million international tourist arrivals.
The report underscores India’s rapid climb in global tourism rankings, from 39th to 8th within a single year, signalling the country’s emergence as a leading international destination. This trajectory, analysts suggest, reflects a broader transformation of tourism into a pillar of economic resilience, job creation, and global competitiveness.
Foreign exchange earnings from tourism paint a striking picture of resilience. Rising steadily from Rs 0.13 lakh crore in 1999 to Rs 2.12 lakh crore in 2019, earnings plunged during the pandemic years to Rs 0.50-0.65 lakh crore. By 2024, however, they rebounded sharply to Rs 2.78 lakh crore, signalling a swift recovery in both foreign and domestic tourist activity.
Mahendra Patil, Founder and Managing Partner of MP Financial Advisory Services LLP, noted that the sector is no longer limited to leisure travel. “Tourism has evolved into a driver of economic growth. The next decade will depend on how effectively India invests in infrastructure, diversifies its offerings, and embraces sustainability,” he said.
The report highlighted government initiatives such as Swadesh Darshan 2.0, PRASHAD, SASCI, and Heal in India as catalysts for growth. Together with changing consumer behaviour, these schemes have supported a diversified tourism economy spanning spiritual, medical, and heritage travel.
India’s spiritual travel market is expanding rapidly, shifting from pilgrimages to immersive experiences. Pilgrim visits surged from 677 million in 2021 to 1,439 million in 2022, doubling revenues to Rs 1.34 lakh crore and generating Rs 2 lakh crore in trade and 800,000 jobs.
Meanwhile, medical tourism continues to show promise. India’s Medical Value Travel (MVT) sector, worth $2.89 billion in 2020, is projected to touch $13.42 billion by 2026. Heritage tourism, pegged at $19.9 billion in 2024, is expected to reach $27.1 billion by 2033 under the PRASHAD scheme.
In FY2024 alone, the tourism and hospitality sector contributed nearly Rs 22 lakh crore, about 7 per cent of India’s GDP, supported by robust domestic demand and government-led campaigns. Between 1999 and 2019, International Tourist Arrivals increased more than fourfold from 2.5 million to 10.9 million, while Domestic Tourist Arrivals grew twelvefold from 191 million to 2,321 million.
Analysts point out that if industry and government work in tandem, Vision 2047 could position India among the top global tourism destinations. The Budget for FY2025-26 has already outlined measures for infrastructure expansion, employment generation, and medical tourism promotion, laying a strong foundation for sustained growth.
The report concludes that India’s tourism sector is at a decisive moment. With infrastructure development, sustainability, and global competitiveness at its core, the industry has the potential to become one of the country’s most powerful engines of growth in the coming decade.
