Tourism turning big growth multiplier, accounting for 5% of GDP and 13% of employment

Indias public sector banks, which were struggling from legacy Indias travel and tourism sector is experiencing robust growth, with both international and domestic tourism contributing to its expansion.

- Tushar K Mahanti

The international tourist arrivals in 2024 touched a new record surpassing the pre-pandemic levels. Domestic tourist visits made an all-time record last year, driven by factors like rising disposable incomes and a growing middle class

India’s tourism sector, with rich heritage, cultural diversity and bountiful natural wonders has emerged as a travellers’ favourite and a key driver of the country’s economic growth.

With a vast area extending from the snow-covered Himalayan heights to the tropical rain forests of the south, India has a rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country.

Forbes magazine ranked India as the seventh most beautiful country in its survey The 50 Most Beautiful Countries in The World’ rankings. This provides a significant opportunity to fully exploit the potential of India’s tourism sector.

India being one the most popular travel destinations across the globe, the Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in the country. The sector has turned into a significant economic multiplier and is becoming increasingly important as the country strives for rapid economic growth and employment generation.

India is covered in beauty in all its nooks and corners. This nations expansive landscape is decorated with the most diverse populations, cultures, and topographies. India also provides various geographical regions, world-class tourist attractions, and specialised travel services, including ecotourism, heritage tourism, adventure tourism and medical tourism.