Will India's tourism sector exceed $59 billion by 2028?
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Synopsis
India's tourism industry is set for a major boom, with expectations of generating over $59 billion by 2028! Discover how domestic travel is skyrocketing and attracting international visitors to luxurious wellness retreats.
Key Takeaways
- Projected revenue of over $59 billion by 2028.
- Foreign tourist arrivals expected to reach 30.5 million.
- Domestic tourism is set to double to 5.2 billion visits by 2030.
- Significant growth in visitor spending, projected to hit Rs 33.95 trillion by 2034.
- Domestic air traffic expected to exceed 693 million passengers by FY30.
New Delhi, Aug 16 (NationPress) The Indian tourism industry is anticipated to generate over Rs 5,12,356 crore (over $59 billion) by 2028, with foreign tourist arrivals (FTAs) projected to reach 30.5 million, according to a report released on Saturday.
Domestic tourism is experiencing remarkable growth, expected to increase to 5.2 billion visits by 2030 from 2.5 billion in 2024, reflecting a 13.4 percent CAGR, as noted in a report by Capitalmind PMS, which references data from the Ministry of Tourism.
The report indicates that India's travel sector is rapidly expanding as increased disposable income and enhanced transportation options result in unprecedented domestic and foreign travel, particularly for luxurious and cultural experiences.
Visitor spending within the country rose from Rs 12.74 trillion in 2019 to Rs 14.64 trillion in 2023, and is expected to reach Rs 33.95 trillion by 2034, boasting a 7.9 percent CAGR.
Enhanced connectivity via air, road, and rail, alongside investments in tourism infrastructure, are propelling this growth.
Domestic air traffic is projected to more than double to 693 million by FY30, compared to 307 million in FY24, as per the report.
The travel market is anticipated to surge from $75 billion in FY20 to $125 billion by FY27.
Domestic tourism has become the star performer, with Domestic Tourist Visits (DTVs) soaring 44.98 percent from 1,731.01 million in 2022 to 2,509.63 million in 2023.
Uttar Pradesh (478.53 million) and Tamil Nadu (286.01 million) are leading in domestic visits, while Maharashtra (3.39 million) and Gujarat (2.81 million) are at the top for foreign tourist visits, as highlighted in the report.
FTAs reached 18.89 million in 2023, exceeding the 2019 peak of 17.91 million by 5.47 percent.
The report reveals that South Asia (29.02 percent), North America (21.82 percent), and Western Europe (20.40 percent) are the primary sources of tourists, with leisure travel (46.2 percent), diaspora visits (26.9 percent), and business travel (10.3 percent) driving these arrivals.
International visitors are increasingly opting for India's luxury wellness retreats over Europe.
From Ayurveda resorts to palace stays and yoga spas, demand is skyrocketing. The report emphasizes that India's value in the luxury sector is gaining global recognition.
Point of View
I can assert that the projected growth of India's tourism sector reflects not only an increase in domestic travel but also a significant shift in international preferences towards India as a destination for luxury and wellness. This trend is positively impacting the economy and showcases India’s potential on the global tourism map.
NationPress
05/10/2025
Frequently Asked Questions
What is the projected revenue of India's tourism sector by 2028?
India's tourism sector is expected to generate over Rs 5,12,356 crore (more than $59 billion) by 2028.
How many foreign tourist arrivals are anticipated by 2028?
Foreign tourist arrivals (FTAs) are projected to reach 30.5 million by 2028.
What is the expected growth rate of domestic tourism?
Domestic tourism is expected to double to 5.2 billion visits by 2030 from 2.5 billion in 2024, representing a CAGR of 13.4 percent.
Which states lead in domestic and foreign tourist visits?
Uttar Pradesh and Tamil Nadu lead in domestic visits, while Maharashtra and Gujarat top the charts for foreign tourist visits.
What factors are driving the growth of tourism in India?
Factors include improved connectivity, increased disposable income, and significant investments in tourism infrastructure.
