A Beginner’s Guide to India’s Tourism & Hospitality Industry

India has always been a land of stories—woven through its ancient temples, bustling bazaars, pristine beaches, and snow-capped mountains. Every corner offers something unique, making the country one of the most vibrant tourism markets in the world. Over the years, tourism and hospitality have evolved from being cultural showcases to becoming powerful drivers of economic growth, employment, and global visibility for India.

If you are looking to understand the opportunities, growth potential, and future of this sector, this beginner’s guide breaks down the essentials of India’s tourism and hospitality industry.

Why Tourism & Hospitality Matter in India

Tourism is more than leisure—it’s a vital contributor to India’s economy. According to the World Travel & Tourism Council (WTTC), the sector contributed ₹21,15,000 crore (US$ 250.2 billion) to India’s GDP in 2024, supporting millions of jobs. Over the next decade, this is expected to grow at an average annual rate of 7.1%, potentially reaching ₹43.25 lakh crore (US$ 511.5 billion) by 2034.

The industry is also India’s cultural ambassador, highlighting everything from Ayurveda and yoga to festivals, cuisine, and heritage monuments. With over 7,500 km of coastline, 40 UNESCO World Heritage Sites, and a diversity of traditions that change every 200 kilometers, India continues to attract tourists seeking authentic and memorable experiences.

Market Size and Growth Potential

India’s tourism and hospitality industry is on a remarkable growth path:

• By 2028, the sector is expected to generate over US$ 59 billion in revenue.
  

• Foreign Tourist Arrivals (FTAs) are projected to reach 30.5 million in the same period.
  

• Domestic air traffic has been growing steadily, with 14 million passengers in February 2025, up from 12.6 million in February 2024.
  

• The luxury travel market is expected to expand at 9.8% CAGR, reaching ₹10,73,785 crore (US$ 123.7 billion) by 2030.
  

This expansion reflects steady hospitality industry growth in India, driven by both domestic and international travelers. The rise of domestic travel hotels in India has also been a key factor, as middle-class families increasingly prefer weekend getaways and short leisure breaks.

Key Drivers of India’s Tourism Growth

1. Robust Demand

Domestic and international travel have surged post-pandemic. India’s diverse geography—ranging from the Himalayas to the backwaters of Kerala—offers year-round attractions. Business travel, MICE tourism (Meetings, Incentives, Conferences, and Exhibitions), and religious tourism remain major demand drivers.

2. Government Policy Support

The Union Budget FY26 allocated ₹2,541 crore (US$ 291 million) to strengthen tourism. This includes:

• Development of 50 top tourist destinations.
  

• MUDRA loans for homestays.
  

• Expansion of e-visa facilities.
  

• Swadesh Darshan 2.0 for sustainable tourism.
  

• PRASHAD Scheme for developing pilgrimage destinations.
  

The government is also encouraging eco-friendly hotels in India, with policy frameworks that support sustainability and environmental responsibility.

3. Diverse Attractions

India offers an unmatched mix of spiritual, adventure, cultural, medical, and eco-tourism. Wellness tourism alone, valued at ₹1,64,027 crore (US$ 19.4 billion) in 2024, is projected to grow to ₹2,51,959 crore (US$ 29.8 billion) by 2031. Travelers are also gravitating towards boutique hotels in India for personalized experiences alongside top hotels in India offering global-standard luxury.

4. Foreign Investments & Expanding Infrastructure

India has received US$ 18.47 billion in FDI in hotels and tourism between April 2000 and December 2024. The rise of hotel chains in India has enhanced competition, quality, and global recognition, with many entering hotel brand rankings across Asia and beyond.

Government Initiatives Shaping the Industry

The Indian government has been proactive in positioning the country as a global tourism hub. Some notable initiatives include:

• Swadesh Darshan 2.0: Developing sustainable theme-based tourist circuits across the country.
  

• PRASHAD Scheme: Focusing on pilgrimage and spiritual tourism infrastructure.
  

• SAATHI Framework: Ensuring safety and hygiene standards in hotels post-COVID.
  

• Vision 2047: Targeting 100 million inbound tourists and US$ 3 trillion direct GDP contribution by 2047.
  

• Skill Development Programs: Training over 12,000 locals near tourist sites to boost employability.
  

• Infrastructure Development: Targeting 220 new airports by 2025 and upgrading roads, lighthouses, and rail-based tourism.
  

In addition, sustainable hospitality awards and hospitality leadership awards are being introduced to recognize hotels and operators that implement innovative solutions, promote green practices, and deliver exceptional service.

Emerging Trends in India’s Tourism & Hospitality

The industry is not just growing in size but also evolving in new directions:

• Religious Tourism: Events like the Maha Kumbh 2025, which attracted over 450 million devotees, underline the scale of faith-based tourism. Ayodhya is set to host 50–100 hotels in the next 3–4 years, cementing its global spiritual appeal.
  

• Wellness and Medical Tourism: With "Heal in India" initiatives, Ayurveda, yoga retreats, and medical treatments are drawing global travelers.
  

• Luxury & Experiential Travel: Guests are recognizing best resorts in India and luxury hotel accolades in India, highlighting the country’s potential as a premium travel destination.
  

• Hospitality Awards & Recognition: Events such as tourism excellence awards and hospitality industry recognition highlight the sector’s best practices, while also showcasing hotel brand success stories across the country.
  

• Guest Experience Innovation: Hotels are leveraging AI, contactless services, and digital personalization. Such innovative hotel brands in India are setting global standards while redefining guest journeys.
  

These shifts are shaping 2025 hotel trends in India, where travelers increasingly value sustainability, personalization, and immersive experiences.

Major Industry Developments

Recent investments and partnerships showcase the confidence global and domestic players have in India’s tourism potential:

• OYO invested ₹86.69 crore (US$ 10 million) to boost digital assets of G6 Hospitality in the US, while also venturing into sports hospitality in India.
  

• Mahindra Holidays & Resorts announced an investment of ₹4,500 crore (US$ 541 million) to double its room capacity.
  

• Radisson Hotel Group expanded with agreements for 21 new hotels in 2023.
  

• EaseMyTrip opened its first franchise store in Haryana and signed an MoU with the Madhya Pradesh Tourism Board to promote sustainable tourism.
  

• IHCL (Taj Hotels) added new properties in Mumbai, Ayodhya, and across India, while also winning international hospitality awards in India for its service excellence.
  

• Events such as the Mumbai hotel brand awards and Delhi hospitality leadership forums continue to highlight progress, innovation, and leadership across the sector.
  

Such developments are ensuring best hospitality practices in India are recognized globally, inspiring both branded hotel franchises in India and independent players.

The Road Ahead

India’s tourism and hospitality sector is not just recovering—it is reinventing itself. From eco-friendly hotels in India to guest experience innovation, the industry is embracing sustainability and technology while staying rooted in cultural authenticity.

By 2047, the sector aims to become a US$ 3 trillion contributor to India’s GDP, generating millions of jobs and establishing India as one of the world’s top three tourism destinations.

For beginners exploring the space, the key takeaway is clear: India’s tourism and hospitality industry is more than sightseeing—it’s an ecosystem of opportunities. Whether you are a traveler, entrepreneur, investor, or policymaker, the sector promises growth, diversity, and a chance to be part of India’s global story.

Final Thoughts

Tourism in India is no longer confined to iconic monuments like the Taj Mahal or popular hill stations. It’s about immersive experiences—from sipping chai in a bustling market to meditating in the Himalayas or sailing through Kerala’s backwaters. For the hospitality industry, this means endless avenues to innovate and serve a growing, dynamic audience.

As hotel brand success stories multiply and hotel chains in India expand, the country’s reputation will be strengthened by global recognition, awards, and rankings. The journey has just begun, and the future is brimming with possibilities.