Tourism remains a vital source of employment in India

India's Travel & Tourism sector is on the cusp of a monumental expansion, poised to become a nearly ₹42 trillion industry by 2035 and a significant engine for national economic growth. According to the 2025 annual research from the World Travel & Tourism Council (WTTC), the sector is not only experiencing a robust recovery but is projected to support over 15 million new jobs in the next decade, signalling a vibrant future for hospitality, travel, and cultural exchange across the country.

Economic contribution and employment

In 2024, the total contribution of the sector to India's gross domestic product (GDP) is estimated at ₹20.9 trillion (USD $249.3 billion), which accounts for 6.6% of the total economy. This represents a 19.9% increase compared to 2019 figures. Projections for 2025 anticipate a further rise to ₹22.5 trillion (USD 268.7 billion), marking a 7.8% annual growth.

Looking ahead, the sector's GDP contribution is forecast to reach an impressive ₹41.9 trillion (USD 501.1 billion) by 2035. This reflects a compound annual growth rate (CAGR) of 6.4% from 2025 to 2035, higher than the expected growth of the overall economy, which has a CAGR of 6.0% for the same period.

The sector also remains a vital source of employment in India. In 2024, the sector contributed 46.3 million jobs, accounting for 9.1% of the country's total employment. This is a 16.3% increase from 2019 levels. Forecasts for 2025 indicate a total of 48.2 million jobs in the sector, a 4.1% year-on-year increase.

SMEs are the backbone

In India, the sector is uniquely decentralised. Unlike some markets dominated by large players, India’s growth is rooted in its grassroots. Thousands of small businesses such as guesthouses, guides, transport operators, restaurateurs, artisans create the human infrastructure that powers travel across urban centres, heritage towns, and remote villages. From family-run homestays in Ladakh to eco-tour operators in Kerala and craft cooperatives in Rajasthan, SMEs form the connective tissue that delivers authentic, localised experiences across the country.

Their role goes far beyond service delivery. SMEs also preserve local knowledge, protect cultural practices, and enable sustainable, community-driven tourism. Moreover, government schemes have opened new doors for SMEs. However, many SMEs still face challenges when it comes to access to finance, tech adoption, and market visibility. Strengthening these enterprises means investing not just in infrastructure, but in skills, connectivity, and partnerships that bring them into the mainstream.

Beyond numbers

Beyond the numbers, what sets India apart is its depth and diversity. From Himalayan treks to coastal retreats, ancient temples to urban innovation hubs, India offers a spectrum of experiences few countries can match. And as travellers increasingly seek meaning, sustainability, and authenticity, India is well positioned to deliver.

The momentum isn’t just about visitors but also about impact. Tourism in India is creating jobs, empowering communities, and opening doors for local entrepreneurs. It’s becoming a channel for cultural preservation and environmental awareness, not just economic gain. As the global tourism landscape shifts, India stands ready to participate and to lead. With continued investment, inclusive policies, and a strong vision for the future, India’s Travel & Tourism sector is not just bouncing back, it’s setting the pace for what 21st-century tourism can be.

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