India’s tourism sector has made a significant economic contribution, accounting for 5% of the country’s Gross Domestic Product (GDP) in the fiscal year 2022-23. This marks a strong recovery for the sector, which was severely impacted by the pandemic, underscoring its resilience and growing role in the nation’s economic recovery.
In addition to its GDP contribution, India recorded 9.52 million foreign tourist arrivals in 2023. Of these, 46.2% came for leisure, holidays, and recreation, while 26.9% were members of the Indian diaspora visiting family or reconnecting with their cultural roots.
Tourism’s Contribution to India’s Economy: A Historical Overview
The contribution of tourism to India’s GDP has seen notable fluctuations over the years. According to the Tourism Satellite Account (2015-16), tourism contributed 5.01% to the GDP in 2018-19. However, the pandemic led to a sharp decline, with the sector’s contribution dropping to 1.5% in 2020-21. A gradual recovery followed, with the share rising to 1.75% in 2021-22. By 2022-23, tourism had regained its pre-pandemic momentum, reaching a 5% contribution to the economy.
Boosting Medical Tourism
In a bid to strengthen India’s position as a leading global destination for medical tourism, the government has extended e-medical visa and e-medical attendant visa facilities to citizens of 167 countries. This initiative aims to streamline the process for international patients seeking medical treatment in India, positioning the country as an attractive healthcare hub for global travelers.
Airfare Concerns and Impact on Domestic Tourism
The government has acknowledged concerns about the rising cost of airfares and its potential impact on domestic tourism. While the issue is under review, no specific updates or assessments were provided regarding its effect on tourism demand.
Outlook for India’s Tourism Sector
India’s tourism sector remains a vital pillar of its economy, showing remarkable adaptability in the face of challenges. With ongoing efforts to enhance infrastructure, promote leisure and medical tourism, and attract international visitors, the sector is poised for continued growth and expansion in the coming years.
