How India Became World's 8th Biggest Tourism Economy Under PM Modi

News18

24-07-2025

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The WTTC projects that by 2034, India's tourism economy could reach $400 billion, representing over 7.2 per cent of GDP and employing over 64 million individuals.
India's rise to become the world's 8th largest tourism economy by 2025, surpassing Japan and France, is a notable achievement from its 10th place in 2024. This milestone, as reported by the World Travel & Tourism Council (WTTC), is attributed to strategic government policies, infrastructure development, cultural richness, and a strong post-pandemic recovery, both domestically and internationally, under Prime Minister Narendra Modi's leadership. The prospect of India becoming the 4th largest tourism economy by 2034 appears highly feasible. In 2023, tourism contributed $199.6 billion to India's economy, supporting 32.1 million jobs.
The WTTC projects that by 2034, India's tourism economy could reach $400 billion, representing over 7.2 per cent of GDP and employing over 64 million individuals. With 43 UNESCO World Heritage Sites, a vast coastline, Himalayan peaks, and a rich tapestry of Sanatani traditions, India offers a diverse blend of spiritual, cultural, adventure, and wellness tourism. The Modi government's ambitious goal is to have tourism contribute over 10 per cent to the national GDP by 2047.
Since 2014, a series of policy reforms and initiatives have transformed the tourism landscape, addressing persistent challenges such as inadequate infrastructure, limited global promotion, and bureaucratic hurdles. Swadesh Darshan, launched in 2014–15, aimed to develop thematic tourism circuits like the Buddhist Circuit, Ramayana Circuit, and Wildlife Circuit to promote niche tourism. Although the initial phase faced challenges, the launch of Swadesh Darshan 2.0 in 2022 with a more focused approach has yielded remarkable results.
Pilot projects in destinations like Orchha (Madhya Pradesh), Gandikota (Andhra Pradesh), and Bodh Gaya (Bihar) have enhanced local infrastructure while preserving environmental and cultural heritage, making lesser-known destinations more accessible and boosting both domestic and international tourism.
The Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) scheme has played a vital role in enhancing religious tourism. With 73 projects sanctioned by 2024, involving an investment of Rs 1400 crore, the scheme has revitalised sacred sites like the Kashi Vishwanath Corridor in Varanasi, Kedarnath, and Ayodhya. These projects have not only improved infrastructure but also created thousands of jobs and boosted local economies. For example, the redevelopment of Ayodhya, especially after the consecration of the Ram Janmabhoomi Mandir, has led to unprecedented footfalls, significantly contributing to tourism revenue.
The UDAN (Ude Desh ka Aam Nagrik) scheme, launched to enhance regional air connectivity, has opened 88 new airports since 2014, making remote tier-2 and tier-3 cities more accessible to tourists. The total length of national highways increased from 91,000 km in 2014 to 1.46 lakh km by 2025, while railway electrification reached 98%. The introduction of Vande Bharat and Amrit Bharat trains has further improved domestic travel by offering faster and more comfortable options. The Union Budget allocated Rs 2541.06 crore to boost the tourism sector, focusing on infrastructure, skill development, and travel facilitation. Initiatives like developing 50 top tourist destinations, offering MUDRA loans for homestays, and introducing e-visa facilities have streamlined tourist experiences.
The Modi government supports sustainable tourism through Swadesh Darshan 2.0 and promotes medical tourism under the 'Heal in India" campaign, positioning India as a global healthcare destination. India's adoption of digital tools for tourism planning, booking, and experiences has made it the most digitally advanced traveler nation, according to the World Economic Forum (WEF). The introduction of e-visas and visas on arrival has simplified entry for international tourists, contributing to a 43.5 per cent growth in foreign tourist arrivals in 2023. These reforms have enhanced India's competitiveness, evidenced by its rise to 39th in the Travel and Tourism Development Index (TTDI) in 2024, up from 54th in 2021.
Infrastructure has been a critical enabler of India's tourism boom. The Modi government's focus on improving connectivity and hospitality infrastructure has addressed long-standing barriers to tourism. The expansion of air, rail, and road networks has been pivotal. The UDAN scheme has connected smaller towns and remote regions, making destinations like Gopalpur (Odisha) and Coorg (Karnataka) more accessible. The doubling of Indian port capacity and the development of cruise terminals, supported by a $27.7 million investment, have tapped into the growing potential of cruise tourism.
India's tourism sector has embraced digital innovation, with mobile apps, virtual tours, and online booking platforms enhancing the tourist experience. The Ministry of Tourism's initiatives, such as the 'Destination Based Skill Development" program, have trained 12,187 candidates at 145 destinations, ensuring that local communities are equipped to leverage digital tools for tourism promotion. India's cultural and natural diversity are key drivers of its tourism appeal. The country's 43 UNESCO World Heritage Sites, including the Taj Mahal, Hampi, and the Ajanta-Ellora Caves, attract millions of visitors annually. India ranks sixth globally for cultural landmarks, with its spiritual heritage, wellness traditions, and adventure tourism offerings drawing both domestic and international tourists.
Religious tourism has been a major contributor to India's tourism economy. Sites like the Ram Janmabhoomi Mandir in Ayodhya, Kashi Vishwanath Temple in Varanasi, and Mahakal Temple in Ujjain have seen record footfalls, thanks to PM Modi's foresight. India has emerged as the 5th largest global travel healthcare destination, with a market size of $9 billion in 2019. The 'Heal in India" campaign promotes medical tourism, leveraging India's cost-effective healthcare and traditional wellness practices like Ayurveda and Yoga. The sector is expected to grow at a CAGR of 21.1 per cent from 2020 to 2027, attracting foreign patients for treatments ranging from cardiac surgery to holistic therapies.
The Modi government's vision to position India as a global adventure tourism hub is supported by initiatives like the development of trekking routes and eco-tourism circuits. Rural tourism, promoted through the National Strategy and Roadmap for Rural Tourism, provides employment opportunities in villages and allows tourists to experience India's authentic cultural heritage. The tourism sector's economic impact extends beyond direct GDP contributions. In 2024, domestic tourism spending reached Rs 15.5 lakh crore, a 22% increase from 2019, while international tourist spending grew by 9 per cent to Rs 3.1 lakh crore. The sector supported 43 million jobs in 2023, with projections of 2.45 million additional jobs in 2024, equivalent to one in 11 jobs in India. By 2029, the sector is expected to generate 53 million jobs, making it a critical driver of employment, particularly for youth, women, and rural communities.
Tourism also has positive spillover effects on related sectors like hospitality, transportation, retail, and handicrafts. For instance, the rise in tourism in cities like Jaipur has boosted demand for local crafts, while coastal tourism in Goa has spurred real estate and transportation services. Foreign exchange earnings from tourism reached Rs 2.31 lakh crore in 2023, reinforcing its role as India's third-largest foreign exchange earner.
The COVID-19 pandemic severely impacted global tourism, but India's recovery has been remarkable, driven largely by domestic tourism. In 2023, domestic visitor spending reached Rs 14.64 lakh crore, 15% above 2019 levels. The resilience of domestic tourism, fuelled by India's growing middle class and increasing disposable income, has been a key factor in the sector's rebound. The Modi government's campaigns like ' Dekho Apna Desh" have encouraged Indians to explore domestic destinations, reducing reliance on international arrivals. The rapid vaccination campaign during the pandemic also played a crucial role in restoring traveller confidence. By 2024, India's tourism sector had surpassed pre-pandemic levels, contributing Rs 21.15 lakh crore to GDP, a 21 per cent increase from 2019.
Additionally, the Modi government's emphasis on digital tourism and specialized training in hospitality and heritage conservation presents opportunities to upskill the workforce and improve tourist experiences. India's ambition to build a $3 trillion tourism economy by 2047 is ambitious but achievable, given its current trajectory. The WTTC predicts that by 2034, India will become the 4th largest tourism economy globally, contributing Rs 43.25 lakh crore to GDP and employing over 63 million people. The Modi government's focus on sustainable tourism, digital integration, and niche segments like medical, adventure, and rural tourism will be critical to achieving this goal. Strategic investments in infrastructure, such as new roads, airports, and digital platforms, will continue to enhance accessibility. The promotion of cultural festivals, heritage conservation, and targeted marketing campaigns will elevate India's global appeal. By balancing economic growth with environmental and cultural preservation, India can position itself as a leading global tourism destination.
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India's rise to the 8th largest tourism economy globally in 2025 with a contribution of $231.6 billion, is a testament to PM Modi's strategic vision, our cultural richness, and our Sanatani resilience. The Modi government's initiatives like Swadesh Darshan, PRASAD, and UDAN, coupled with infrastructure development and digital innovation, have transformed the tourism landscape. The sector's economic contributions, job creation, and cultural promotion underpin its role as a driver of inclusive growth. As India aims for a $3 trillion tourism economy by 2047, it is poised to embrace growth with spiritual tourism and development with cultural renaissance, without compromising on any single aspect. ' Vikas bhi aur Aastha bhi" has been the clarion call of PM Modi, and India is just getting started. The world is our oyster.
Sanju Verma is an Economist, National Spokesperson for BJP, and Bestselling Author of 'The Modi Gambit'. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18's views.
tags :
Indian tourism pm narendra modi Udan Scheme
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Location :
New Delhi, India, India
First Published:
July 24, 2025, 17:41 IST
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