Indian travel and tourism set for a promising decade ahead

The Indian travel and tourism market is experiencing a significant transformation with the rise of digital platforms and online booking services, making travel more accessible and convenient for consumers. According to Statista, the market is expected to generate revenue of $23.72bn in 2024, with a projected annual growth rate of 9.62% leading to a market volume of $34.25bn by 2028.

One of the key trends in the Indian travel and tourism market is the increasing popularity of adventure tourism and wellness retreats, catering to the evolving preferences of travellers. Additionally, travellers in India are seeking unique and authentic experiences, driving the demand for off-the-beaten-path destinations and cultural immersion.

The sector’s growth is also reflected in job creation, with an estimated addition of 5.82 crore jobs by 2033. Despite the challenges posed by the pandemic, the sector remained resilient and accounted for 39 million jobs in 2020, constituting 8% of the total workforce in the country. Following the pandemic recovery, talent demand in tourism surged by 44% in August 2023 alone, with 1.6 million jobs expected to be added in the same year.

India’s travel and tourism industry significantly contributes to the economy, generating INR 15.9 lakh crore in 2022, with an estimated contribution of INR 16.5 lakh crore in 2023. The sector’s transformation is evident with subsets such as destination wedding travel, religious tourism, adventure sports tourism, ecotourism, cultural tourism, and rural tourism gaining traction.

With the growing middle class and rising disposable incomes in India, coupled with government initiatives to promote tourism and improve infrastructure, the travel and tourism industry is poised for continued growth. The increasing connectivity through air, road, and rail networks has made travel within India more convenient and affordable for travellers, further driving the industry’s expansion.