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India tourism is booming with ‘UDAN’ routes, visa-free entry, and massive aircraft orders, driving record growth in international arrivals, led by the USA.
India’s tourism sector is being dynamically transformed through strategic initiatives and significant investments. Connectivity has been revolutionized by the ‘UDAN’ scheme with 78 new low-cost routes connecting new destinations. Travel experiences are being enhanced by airlines like Air India, IndiGo Airlines, and Akasa Air. The appeal of India as a travel destination is being further amplified by the visa-free entry and e-visa for passport holders from 125 countries including Schengen Countries, USA, UK, Canada and Australia. USA tops with 2.06 million international tourist arrival fueling tourism surge with total inbound arrival of 9.23 million travelers in India. India is expected to reach 13 million global travelers including corporate, business and leisure travel. The aviation industry is surging with world’s highest 900 number of aircraft ordered to Boeing and Airbus including wide body aircrafts A350 and A380 variants by Air India, Akasa Air, and IndiGo Airlines, along with a surge in Foreign Direct Investment (FDI). Additionally, millions of visitors are expected to be drawn by the inauguration of the Ram Mandir. Other top sources of tourists include the UK, Canada, Australia, and Bangladesh, underscoring India’s rising prominence on the global travel map.
India’s tourism sector is projected to generate USD 23.72 billion in 2024, with an anticipated annual growth rate of 9.62% over the next five years. The booming economy, marked by a GDP growth of 7.2%—the highest among global economies—is leading to a surge in corporate and business travel, propelling a domestic tourism boom.
TTW Editor in Chief Mr. Anup Kumar Keshan said: “The Indian aviation market is poised to become the third largest in the world, driven by substantial orders totaling 900 aircraft from three major airlines: Air India, IndiGo, and Akasa Air. These orders, placed with Boeing and Airbus, reflect the rapid expansion and growing demand within the industry by 2024-2025. India’s inbound tourism is surging and is expected to receive a significant boost from improved infrastructure and connectivity between different states, coupled with a rising economy. This growth is further fueled by cultural heritage promotions and digital marketing efforts.”
“Air India’s largest order of 400 aircraft highlights the expansion, with the USA topping the charts for international arrivals in India. The introduction of visa and e-visa facilities for passport holders from 125 countries has further enhanced India’s appeal as a travel destination. The opening of the economy and an increase in Foreign Direct Investment are propelling business and industry growth, leading to a rise in international corporate and business travel, thereby fueling the inbound tourism surge in India. With USA topping the charts with 2.06 million visitors, and other key international arrivals include the UK, Australia, Canada, and Bangladesh. And countries investing heavily in India, the market is set to grow more, with international tourist arrivals expected to reach 14 million, surpassing pre-pandemic levels.”
The Indian aviation market is on the brink of substantial expansion, fueled by major aircraft contracts secured in 2023. Over the last 18 months, Indian airlines have made record-breaking orders, including a significant deal by Air India with Airbus and Boeing, IndiGo’s historic order of 500 narrow-body aircraft, followed by 30 firm A350 commitments, and Akasa Air’s purchase of 150 Boeing aircraft at Wings India earlier this year. These extensive orders position India as the third-largest domestic aviation market globally, with the potential to surpass the UK as the third-largest air passenger market by the fiscal year 2024-25.
India’s tourism sector is experiencing a remarkable transformation, driving growth in business, leisure, and religious travel. The ‘UDAN’ scheme has introduced 78 new routes connecting new destinations, and airlines like Air India and IndiGo. These initiatives are making India an increasingly attractive destination for international travelers. Furthermore, passport holders from 125 countries can now enter India visa free and e-visa, significantly boosting tourism.
India’s infrastructure spending is projected to exceed $2.5 trillion by 2032, positioning the country as a $10-trillion economy with sizeable share of tourism industry. At the ‘Infrastructure: the Catalyst for India’s Future’ event by Crisil, Adani highlighted two emerging infrastructure sectors: sustainable energy transition and digital infrastructure, which are crucial for the future growth of the country and the global GDP. The infrastructure for tourism includes essential components like airports, railways, roads, waterways, and amenities such as electricity, water supply, drainage, sewerage, solid waste disposal systems, and services like accommodation, restaurants, recreational facilities, and shopping facilities.
India Tourism anticipates a significant influx of visitors with the opening of the Ram Temple in Ayodhya, estimating 3 to 5 lakh daily visitors for at least the first month post-inauguration. Investments exceeding $10 billion in new airports, modernized railway stations, townships, and enhanced roadways are expected to attract an annual visitation of about 5-10 crore.
The travel and tourism market in India is projected to generate USD 23.72 billion in 2024, with a projected annual growth rate (CAGR 2024-2028) of 9.62%, according to the India Brand Equity Foundation (IBEF). This growth trajectory is expected to propel the market volume to USD 34.25 billion by 2028.
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In March 2024, the Minister of Civil Aviation and Steel announced the inauguration of 15 airport projects worth US$ 12.1 billion by 2028. India is set to become a US$ 5 trillion economy by 2025, with tourism playing a significant role in its GDP.
The country’s tourism, travel, and hospitality sectors are poised for unprecedented growth, driven by increasing international tourist arrivals and robust economic contributions. By 2028, India is expected to attract 30.5 million international tourists, generating substantial revenue and cementing its status as a top choice for travelers worldwide.
According to the World Travel & Tourism Council (WTTC), India’s Travel & Tourism GDP is projected to grow at an average of 7.1% annually over the next decade. Prime Minister Narendra Modi recently inaugurated 52 tourism sector projects valued at over Rs. 1,400 crore (US$ 168.5 million) under the Swadesh Darshan and PRASHAD schemes, further bolstering the sector’s growth.
By 2028, India’s tourism and hospitality industry is expected to generate over USD 59 billion in revenue. The WTTC ranks India 10th among 185 countries in terms of travel and tourism’s total contribution to GDP in 2019. In 2022, the sector contributed US$ 199.6 billion to India’s economy.
Foreign Tourist Arrivals (FTAs) to India are forecasted to surpass pre-pandemic levels in 2024, driven by increased global travel confidence and shifting tourist preferences. In 2023, India recorded a significant increase in FTAs, with 9.23 million foreign tourists visiting the country, though still below the pre-pandemic peak of 10.93 million. Industry experts highlight India’s emergence as a preferred destination amid geopolitical shifts and the post-pandemic recovery.
Though IndiGo has long been the largest carrier in terms of international traffic to and from India, it recently saw a sequential drop of 2.9%. Interestingly, Air India gained the exact 2.9% of the traffic in the same period. Air India is set to play a pivotal role in enhancing inbound tourism from January 2026, following its deal to acquire 470 aircraft from Airbus and Boeing.
In December 2023, the United States led the way as the primary origin for inbound tourists, making up 22.33% of arrivals. Trailing close was Bangladesh with 16.97%. The United Kingdom, Australia, and Canada rounded out the top five. Notably, annual data shows a shift, with Bangladesh being the leading source of tourists from January to December 2023.
Promising Recovery in India’s Hospitality Sector: A Lucrative Investment Opportunity
Reports indicate the hospitality sector is on a promising recovery trajectory, anticipating over $400 million in investments between 2020 and 2023. Additionally, it forecasts the addition of nearly 12,000 rooms in 2023, with the total number of rooms projected to increase at a compound annual growth rate (CAGR) of about 3.3% by 2025. The US leads in international tourist arrivals, with 2.06 million tourists making up 22.66% of the total.
Fitch Ratings have increased India’s GDP forecast to 7.2% for the current fiscal year in 2024, marking the highest growth among global economies.
The Indian tourism sector shows great variety, with package holidays emerging as the dominant market segment, anticipated to reach a volume of $10.48 billion in 2024. By 2028, it is expected that 64.74 million users will engage with this market, increasing the user penetration rate from 7.8% in 2024 to 10.0% in 2028. The expected average revenue per user (ARPU) in this segment is projected at $209.70 by 2028, with 60% of revenue anticipated to come from online sales.
In line with worldwide trends, India is transforming its tourism sector with an emphasis on sustainable and eco-friendly travel, aiming to draw global travelers. The sector is projected to contribute $250 billion to the nation’s GDP by 2030, supporting 137 million jobs. Recently, on March 7, Prime Minister Modi initiated 52 tourism projects valued at over Rs 1,400 crores under the Swadesh Darshan and PRASHAD schemes, enhancing tourism infrastructure at pilgrimage and heritage sites, among others, and boosting community involvement in tourism.
At the same event, Prime Minister Modi launched ambitious campaigns such as ‘Dekho Apna Desh People’s Choice 2024’ and the ‘Chalo India Global Diaspora Campaign’ to engage both locals and the global Indian diaspora in promoting tourism and celebrating India’s cultural diversity.
The newly launched Swadesh Darshan 2.0 Scheme reflects the government’s dedication to comprehensive destination development and community involvement in tourism. With its robust infrastructure, evolving tech landscape, and increasing disposable incomes, India is on track to become a top global tourism destination. Through strategic initiatives and a commitment to sustainable practices, India is unlocking its potential to become a prime choice for travelers around the world.
The booming economy is also leading to a surge in corporate and business travel, propelling a domestic tourism boom.
Transformative Growth in India’s Tourism Sector: A New Era for Business, Leisure, and Religious Travel
India’s tourism sector is experiencing a profound transformation, emerging as a key driver for business, leisure, and religious travel. The introduction of the ‘UDAN’ scheme has added 78 low-cost routes, while airlines like Air India and IndiGo are offering special promotions and discounted fares during peak seasons. These initiatives have made India an increasingly attractive destination for international travelers. Additionally, citizens from 125 countries can now enter India without a visa, significantly boosting tourism.
In June 2023, IndiGo made headlines by placing the world’s largest aircraft order, securing 500 A320neo family planes from Airbus, with deliveries expected between 2030 and 2035. The overall order comprises 470 firm aircraft and 370 options and purchase rights to be procured over the next decade from both Airbus and Boeing. This substantial investment underscores the robust growth and future potential of India’s aviation market.
India now stands as the third-largest domestic aviation market globally and is set to surpass the UK to become the third-largest air passenger market worldwide by the fiscal year 2024-25. The nation’s tourism industry is undergoing a remarkable transformation, becoming a major driver of business, leisure, and religious travel. With the recent launch of the ‘UDAN’ scheme and the special promotions and discounted fares offered by carriers like Air India and IndiGo, India is rapidly emerging as a premier international travel destination. The country’s travel, tourism, and hospitality sectors are poised for exceptional growth, with expectations to attract 30.5 million international tourists by 2028.
India’s travel and tourism sector is projected to generate approximately $24 billion in revenue in 2024, according to the India Brand Equity Foundation. The sector is forecasted to expand at an annual growth rate of 9.6% from 2024 to 2028, potentially reaching a market size of $34.25 billion by the end of this period.
Visa free and E-visa Countries can Travel to India:
ASIA
Afghanistan, Armenia, Azerbaijan, Bahrain, Bangladesh, Brunei Darussalam, Cambodia, Georgia, Indonesia, Japan, Kazakhstan, Kyrgyzstan, Laos, Malaysia, Maldives, Mongolia, Myanmar, Nepal, North Korea, Oman, Pakistan, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Sri Lanka, Taiwan, Tajikistan, Thailand, Turkmenistan, United Arab Emirates, Uzbekistan, Vietnam
Europe
Albania, Andorra, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Monaco, Montenegro, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Kingdom, Vatican City
Africa
Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Republic of the Congo, Democratic Republic of the Congo, Djibouti, Egypt, Equatorial Guinea, Eritrea, Eswatini, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, São Tomé and Príncipe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, South Sudan, Sudan, Tanzania, Togo, Tunisia, Uganda, Zambia, Zimbabwe
Oceania
Australia, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu
North America
Antigua and Barbuda, Bahamas, Barbados, Belize, Canada, Costa Rica, Cuba, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago, United States
South America
Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, Venezuela
India’s tourism sector is poised for unparalleled growth, driven by strategic initiatives, significant investments, and robust economic performance. The ‘UDAN’ scheme, special airline promotions, and visa-free entry for citizens of 125 countries are revolutionizing travel experiences, making India a prime destination for international tourists. Landmark aircraft orders and a surge in Foreign Direct Investment underscore the aviation industry’s bright future. The booming economy, marked by a 7.2% GDP growth rate, is propelling corporate and business travel, further boosting domestic tourism. The upcoming inauguration of the Ram Mandir is expected to draw millions of visitors, adding to the sector’s momentum. With the USA leading in international tourist arrivals and strong contributions from the UK, Canada, Australia, and Bangladesh, India’s prominence on the global travel map is firmly established. Projected to generate USD 23.72 billion in revenue in 2024 and grow at an annual rate of 9.62% over the next five years, India’s tourism sector is on a promising trajectory. As the nation continues to invest in infrastructure and sustainable practices, it is set to become a top global tourism destination, unlocking vast opportunities for growth and development.
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