India’s Ranking In Tourism

India’s Tourism Sector: Global Standing and Economic Impact in 2024

India’s rich cultural heritage, diverse geography, and historical landmarks have long made it an attractive destination for both domestic and international tourists. With strategic government initiatives and private sector engagement, India has significantly enhanced its tourism infrastructure in recent years. The country’s performance in global tourism rankings and its revenue from the sector in 2024 underline its growing prominence on the world stage.

India’s Global Ranking in Tourism

In the latest Travel and Tourism Development Index (TTDI) 2024, released by the World Economic Forum (WEF), India ranks 39th out of 119 countries. This is a noteworthy improvement from its 54th position in the 2021 edition of the index. The World Economic Forum later revised its methodology and retrospectively placed India at 38th in the 2021 report, making the 2024 position relatively stable but still impressive.

Importantly, India is the highest-ranked country in South Asia and the top performer among lower-middle-income economies. The ranking considers several key pillars such as enabling environment, infrastructure, travel and tourism policy, sustainability, cultural and natural resources, and price competitiveness.

India fares exceptionally well in several parameters:

• Price Competitiveness: India ranks 18th globally, which highlights the affordability of travel within the country.
• Air Transport Infrastructure: Ranked 26th, reflecting rapid modernization and expansion of airports.
• Ground and Port Infrastructure: Ranked 25th, showing improved connectivity and logistics.
• Cultural Resources and Business Travel: India remains one of the top 10 globally, owing to its vast heritage and increasing MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism.

Government Initiatives Driving Growth

India’s rise in the global tourism rankings has been fueled by robust policy measures and strategic investments in the tourism sector. Schemes such as Swadesh Darshan, PRASHAD (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive), and Dekho Apna Desh have played a crucial role.

The Swadesh Darshan Scheme focuses on developing theme-based tourist circuits like Buddhist, Coastal, Desert, Eco-tourism, Heritage, Himalayan, and Tribal circuits. Meanwhile, PRASHAD aims to promote religious tourism by improving infrastructure around key pilgrimage sites. The Dekho Apna Desh campaign promotes domestic tourism and encourages citizens to explore lesser-known destinations across the country.

In addition, the e-Visa facility, now extended to citizens of over 150 countries, has simplified the process of visiting India, resulting in increased foreign tourist arrivals.

Economic Turnover of the Tourism Sector

Tourism is a major contributor to India’s economy, playing a vital role in employment generation and foreign exchange earnings. The data from 2023 and projections for 2024 reveal the sector’s robust financial performance.

1. GDP Contribution in 2024

In 2024, India’s travel and tourism sector contributed approximately ₹21.15 trillion (USD 253 billion) to the country’s GDP. This marks a 12% increase compared to the previous year. In terms of share, this equals nearly 9% of India’s total GDP, a significant rise from the 5% GDP share in FY 2022–23.

2. Foreign Exchange Earnings (FEEs)

India earned ₹231,927 crore in foreign exchange through tourism in 2023, reflecting the country’s growing appeal to international travelers. This figure marked a strong recovery from the pandemic-induced slump and showcased the resilience of the tourism ecosystem.

3. Monthly Revenue Milestone

India’s tourism revenue hit an all-time high of USD 4 billion in December 2024 alone. This monthly record underscores not just seasonality but also the growing frequency and scale of high-value tourism activities, including international events, spiritual circuits, luxury travel, and wellness tourism.

Employment Generated by Tourism in 2024

The tourism sector was a major driver of employment in 2024, supporting nearly 43 million jobs. This is an 8% increase from 2019 levels. These jobs span across various segments such as hospitality, aviation, transportation, cultural preservation, and tour operations.

Tourism now constitutes approximately 9% of India’s total workforce, which is significant given the scale of employment required in a country of over 1.4 billion people. This marks a steady growth from previous years where tourism accounted for around 6.5% to 7% of total employment.

Key Growth Drivers

Several factors have contributed to the upswing in India’s tourism performance:

a. Improved Connectivity

India has expanded both its international and regional airport networks. The UDAN (Ude Desh ka Aam Nagrik) scheme has made air travel accessible to tier-2 and tier-3 cities, thereby opening new tourist destinations to visitors.

b. Digital Transformation

Digital platforms for booking, payments, and virtual guides have enhanced the visitor experience. Apps like ‘Incredible India’ and online platforms of the Archaeological Survey of India allow tourists to access information and services seamlessly.

c. Focus on Sustainability

Eco-tourism and sustainable travel have been emphasized in policy frameworks. India is promoting low-carbon tourism initiatives, conservation-based tourism in forest reserves, and responsible travel across ecologically sensitive zones.

d. Medical and Wellness Tourism

India has become a preferred destination for medical tourism, attracting thousands of patients from Africa, West Asia, and South Asia for affordable and high-quality treatment. Similarly, wellness tourism, focused on yoga, Ayurveda, and naturopathy, has seen a surge, especially from Western countries.

e. Events and Film Tourism

India’s success in hosting large-scale events like the G20 Summit in 2023, along with its portrayal in international cinema, has given tourism a global marketing boost. States like Rajasthan, Goa, and Kerala have capitalized on this by offering film tourism packages and promoting exotic locales.

Challenges and the Road Ahead

Despite the significant progress, certain challenges remain:

• Seasonal fluctuations in tourist arrivals can strain infrastructure during peak periods and leave resources underutilized during the off-season.
• Regional disparities exist, with states like Kerala, Goa, Rajasthan, and Himachal Pradesh attracting more tourists compared to states in eastern India.
• Infrastructure gaps in sanitation, last-mile connectivity, and safety standards, especially for women travelers, still need attention.

To address these issues, the Indian government is focusing on holistic planning under the National Tourism Policy, integrating stakeholder feedback, and ensuring better coordination between states, private players, and central agencies.

Conclusion

India’s tourism sector is poised for transformative growth. From ranking 39th in the WEF’s global index to generating over ₹21 trillion in GDP and employing 43 million people, the country’s progress is a testament to its policy-driven development and cultural richness.

As India continues to invest in sustainable infrastructure, digital technology, and promotional campaigns, it is well on its way to becoming one of the world’s top 20 tourism destinations. With its unique blend of tradition and modernity, spiritual heritage and adventure offerings, India’s tourism landscape presents limitless opportunities—both as a cultural ambassador and an economic powerhouse.