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India’s Tourism contributes $263.6b to its economy

News Desk
29 July 2026 03:00 Updated: 29 July 2026 03:00

NEW DELHI: India’s travel and tourism industry continued its rapid expansion in 2025, contributing $263.6 billion to the national economy and supporting 46.2 million jobs, according to the latest Economic Impact Research by the World Travel & Tourism Council (WTTC).

The report, sponsored by Chase Travel, describes India as one of the world’s fastest-growing tourism markets, driven by strong domestic travel demand, sustained infrastructure investment and a diverse range of tourism experiences. The sector grew by 7.3 percent in 2025, well above the global average growth rate of 4.1 percent, reinforcing its importance as a key pillar of India’s economic development.

According to the WTTC, travel and tourism now account for 6.6 percent of India’s gross domestic product (GDP) and support more than one in every 10 jobs across the country.

Domestic tourism remained the industry’s biggest strength, with spending reaching $203 billion in 2025, accounting for 86 percent of total travel and tourism expenditure. Domestic visitor spending also increased by more than 10 percent from the previous year, highlighting the resilience and scale of India’s internal travel market.

While domestic tourism continues to fuel the industry’s growth, the WTTC believes international tourism presents the country’s next major opportunity. Foreign visitor spending currently represents only 14 percent of total tourism expenditure, indicating significant potential for India to attract a larger share of the expanding global travel market.

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One of India’s major competitive advantages, the report noted, is the average length of stay by international visitors. Tourists spend an average of 18.5 days in the country—among the longest average stays recorded worldwide. The WTTC attributed this to India’s rich cultural heritage, historical landmarks, natural attractions, spiritual destinations and diverse leisure experiences, which encourage longer and higher-value visits.

The council expects the industry’s momentum to continue in 2026. Travel and tourism’s contribution to GDP is projected to grow by 8.5 percent, reaching $286.1 billion, while employment in the sector is forecast to rise to 48.1 million jobs.

Looking further ahead, the WTTC predicts that India’s tourism economy will almost double over the next decade, reaching $527 billion by 2036. Such growth would elevate India from the world’s 10th-largest travel and tourism economy to fourth place, while international visitor spending is expected to increase by nearly 60 percent during the same period.

To achieve this growth, the WTTC urged continued cooperation between the government and private sector. It identified several priorities, including simplifying visa procedures through enhanced e-visa services, expanding international flight connectivity, investing in transport infrastructure such as the Mumbai-Ahmedabad High-Speed Rail corridor, strengthening digital public infrastructure and visitor services, increasing international destination marketing and further developing heritage, cultural, nature and eco-tourism attractions.

The report said India’s robust domestic market provides a solid platform for future expansion, but attracting a greater share of international travelers will be essential to strengthening the country’s position as one of the world’s leading tourism destinations.

WTTC President and Chief Executive Officer Gloria Guevara said India possesses all the ingredients needed to become one of the world’s greatest tourism success stories. She praised the country’s strong domestic travel market, major infrastructure investments and extraordinary diversity of visitor experiences.

“The opportunity now is to build on this success by attracting an even greater share of international travel,” Guevara said. “Through continued collaboration between government and the private sector, enhanced connectivity, seamless and secure travel experiences, and further progress on visa facilitation, India can unlock even greater economic benefits for communities across the country while strengthening its position as one of the world’s leading travel and tourism destinations.”

With sustained investment, policy support and innovation, the WTTC believes India’s tourism sector is well positioned to become a major driver of economic growth, employment and global competitiveness over the coming decade.