The tourism industry's notable recovery in 2023, contributing 5% to the GDP, signals a positive trend. Sectors like trade, hotels, and transport are rebounding post-pandemic challenges. Key initiatives such as PRASHAD and Swadesh Darshan 2.0 are enhancing domestic tourism infrastructure. Religious tourism, vital in India, is being boosted by projects like Bharat Gaurav trains. Despite hurdles, international tourism is recovering, with India ranking 14th in global tourism receipts. Continued development of global infrastructure is essential for India's tourism industry's competitiveness and growth.
The tourism industry has made a significant recovery, contributing 5 per cent to the Gross Domestic Product (GDP) in the fiscal year 2023, as per the Economic Survey 2024-2025.
The survey noted that sectors such as trade, hotels, transport, and communication services are progressively returning to pre-pandemic levels. These contact-intensive industries faced obstacles during lockdowns and reduced demand, impacting travel, hospitality, entertainment, and personal services.
Aashish Gupta, the consultant Chief Executive Officer (CEO) of the Federation of Associations in Indian Tourism and Hospitality (FAITH), emphasized the resilience of domestic tourism in reviving the country's tourism sector post-pandemic. He commended the government's focused efforts on strengthening domestic tourism through various initiatives highlighted in the latest Economic Survey.
Key schemes like the Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD) and Swadesh Darshan 2.0 have been instrumental in developing tourism infrastructure and promoting domestic travel in India. The Swadesh Darshan Scheme 2.0, with its emphasis on sustainable tourism, has seen 34 projects approved with a total funding of Rs 793.2 crore.
Religious tourism plays a significant role in domestic travel, accounting for over 60 per cent of travel within India. The PRASHAD initiative aims to enhance tourism infrastructure at pilgrimage sites and heritage cities.
The introduction of Bharat Gaurav trains as theme-based tourist circuits has bolstered rail tourism in India, providing comprehensive tour services to over 1,91,033 tourists through 325 trips, covering various tourist destinations.
Aligned with the FY25 Budget announcement, the Indian government sanctioned interest-free loans for 40 projects across 23 states worth Rs 3,295.8 crore, under special assistance to states for capital investment. This initiative aims to enhance integrated tourism hubs across the country.
International Tourist Arrivals (ITAs) in India have rebounded to pre-pandemic levels in 2023, a positive sign for hotels and tour operators. Despite challenges, India ranked 14th globally in world tourism receipts in 2023, with foreign exchange earnings amounting to $28 billion.
While India's ITAs are on the rise, there is a call to further develop international tourism infrastructure and global transport networks to compete effectively in the global tourism market.
Overall, the strides made in the tourism sector indicate a promising trajectory for India's domestic and international tourism, supported by government initiatives and industry resilience.
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