Government aims to raise share of tourism in economy to 10%

Syllabus: GS3/Economy

Context

• The Union Minister of Culture and Tourism has said that the government is committed to raising the contribution of tourism in the country’s economy to 10% by 2047.

India’s Tourism Sector: Key Highlights

• India’s tourism sector, rich in heritage, culture, and diversity, is emerging as a global favorite and a key driver of economic growth.
• India’s economy is $4 trillion today, expected to reach $32 trillion by 2047.
• Tourism contributes 5–6% to India’s economy currently.
• The aim is for tourism to contribute 10% of the economy by 2047 — aligning with global benchmarks.
• India received 1.8% of world tourism receipts and attained a rank of 14th worldwide in world tourism receipts during 2023.
• Projected Growth: Tourism sector expected to grow at a Compounded Annual Growth Rate (CAGR) of 24%.
• Spiritual tourism: Every Indian state offers diverse and unique cultural experiences.
• Sustainability Focus: Emphasis on sustainable tourism development alongside growth.

Types of Tourism offered in India

• Bounded by the Himalayan ranges in the north and edged by a coastline surrounded by three seas, India has historical sites and royal cities, golden beaches, mountain retreats, rich cultures and festivities. 
• Adventure tourism: This involves exploration of remote areas and exotic locales and engaging in various activities.
  • For adventure tourism in India, tourists prefer to go trekking to places like Ladakh, Sikkim, and Himalayas. 
• Spiritual Tourism: The diversity of religions, cultures, and languages of India is unique and unparalleled supporting spirituality.
• Beach Tourism: India’s vast coastline and islands provides ample opportunities for tourism.
  • Kerala, Goa, Andaman & Nicobar Islands, Lakshadweep islands attract tourists in large numbers all around the year.
• Cultural tourism: India is known for its rich cultural heritage and an element of mysticism, which is why tourists come to India to experience it for themselves. 
• The various fairs and festivals that tourists can visit in India are the Pushkar fair (Rajasthan), Taj Mahotsav (Uttar Pradesh), and Suraj Kund mela (Haryana). 
• Wildlife tourism: India has a rich forest cover which has exotic species of wildlife – some of which are even endangered and very rare. This has boosted wildlife tourism in India. 
• Medical tourism: Tourists from all over the world come to India to avail themselves of cost-effective but superior quality healthcare in terms of surgical procedures and general medical attention. 

Challenges

• Infrastructure Deficiencies: Many tourist destinations in India suffer from inadequate infrastructure, including poor road conditions, insufficient public transportation, and inadequate facilities in popular tourist areas.
• Environmental Degradation: Increased tourism lead to environmental problems such as pollution, overuse of natural resources, and damage to wildlife and ecosystems.
• Lack of Standardization: There is a lack of standardized quality control across various services in the tourism sector, from hotels and restaurants to tour operators. This inconsistency affect the overall tourist experience.
• Seasonality: Many tourist destinations face seasonal fluctuations, with high tourist numbers during peak seasons and low numbers during off-seasons. 
• Marketing and Promotion Challenges: Effective marketing strategies are often lacking, and there is a need for better promotion of lesser-known destinations. 
• Cultural Sensitivity and Management: Managing cultural heritage responsibly while balancing tourism needs is challenging. 

Government Initiatives 

• Enhancing Connectivity and Investment: In the 2025 budget, the Finance Minister announced a landmark initiative to develop 50 top tourist destinations in partnership with states through a challenge mode.
  • This initiative aims to elevate tourism infrastructure, improve ease of travel, and strengthen connectivity to key sites. 
• Swadesh Darshan Scheme: This scheme was launched to develop theme-based tourist circuits across the country.
  • It focuses on creating world-class infrastructure, including roads, amenities, and signage, to improve the tourist experience.
• Revitalizing Spiritual Tourism: Recognizing the deep cultural and spiritual significance of religious tourism, the government will prioritize the development of sites associated with pilgrimage and heritage.
  • The Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD) will continue to play a crucial role in enhancing infrastructure at major pilgrimage sites and heritage cities.
• Medical Tourism: Medical tourism and the “Heal in India” initiative will be promoted in partnership with the private sector, enhancing India’s position as a premier global healthcare destination.
• Atithi Devo Bhava Campaign: This initiative promotes hospitality and the cultural ethos of treating guests with utmost respect and care.
  • It includes training programs for service providers in the tourism sector.
• Visa Reforms: The introduction of e-visa facilities for citizens of many countries has simplified the process for obtaining a visa to visit India. This move aims to attract more international tourists.
• Support for Sustainable Tourism: The government is promoting eco-friendly and sustainable tourism practices through various schemes and guidelines, including the promotion of responsible tourism.
• Measures to Facilitate Employment-Led Growth in the 2025-26 Budget:
  • Providing MUDRA loans for homestays;
  • Providing performance-linked incentives to states for effective destination management including tourist amenities, cleanliness, and marketing efforts and;
  • introducing streamlined e-visa facilities along with visa-fee waivers for certain tourist groups.

Conclusion

• The Government of India is committed to positioning the country as a global leader in tourism by enhancing infrastructure, boosting employment, and promoting diverse tourism segments. 
• The “Heal in India” initiative and Medical Value Travel sector underscore India’s growing prominence as a premier healthcare destination. 
• With a strong emphasis on ‘Seva’ and ‘Atithi Devo Bhava,’ India is set to redefine its tourism landscape and establish itself as a world-class destination.

Source: IE