Tourism Sector in India

After Reading This Article You Can Solve This UPSC Mains Model Questions:

“Despite immense cultural and natural endowments, India continues to underperform as a global tourism destination.” Analyse the structural constraints facing India’s tourism sector and suggest measures to unlock its full potential. 250 words (GS-3 Economy)

Context

Despite its civilisational depth, ecological diversity and cultural richness, India underperforms as a global tourism destination. As of August 2025, India recorded about 5.6 million foreign tourist arrivals (FTAs), far below peers like Singapore (11.6 million) and Thailand (>$60 billion tourism receipts). This gap reflects structural and policy deficits rather than lack of potential.

Significance of Tourism Sector in India

1. Economic Engine & Foreign Exchange (FEE)

In 2024, India earned approximately $28 billion in foreign exchange. The government is targeting $130–140 billion in earnings by 2030.

2. Massive Employment Multiplier

Direct & Indirect Jobs: In FY23, the sector supported nearly 7.6 crore (76 million) jobs.
Regional Benefit: Unlike manufacturing, tourism creates jobs in remote, rural, and tribal areas (e.g., homestays in the Northeast or Ladakh), curbing rural-to-urban migration.

3. Inclusive and Balanced Regional Development

It empowers MSMEs and local artisans, as 80-90% of the tourism supply chain consists of small-scale businesses.

4. Soft Power and Cultural Diplomacy

By showcasing Yoga, Ayurveda, and its spiritual heritage, India fosters “people-to-people” contact that transcends political boundaries.

5. Preservation of Heritage and Environment

Tourism provides the economic rationale for preserving India’s 44 UNESCO World Heritage Sites.
Revenue from tickets and tours funds the maintenance of ancient monuments and the protection of wildlife (e.g., Tiger Reserves).
The transition toward Eco-tourism ensures that local communities become guardians of their natural environment rather than exploiters.

6. Growth of Niche “High-Value” Sectors

Medical Value Travel (MVT): Projected to reach $13.42 billion by 2026, attracting patients globally for low-cost, high-quality healthcare.
MICE (Meetings, Incentives, Conferences, and Exhibitions): Positioning India as a hub for global business summits, which generates higher per-capita spending compared to leisure tourists.

Core Problems of Tourism Sector in India

I. Image

Safety Deficit: Ranked 114th in the WEF Safety & Security index. High-profile reports of harassment and scams create a “cautionary” rather than “welcoming” global narrative.
Marketing Monolith: The “Incredible India” brand is iconic but too generic. Competitors use “surgical marketing” (e.g., Malaysia’s Truly Asia or Thailand’s Amazing Thailand); India lacks specific sub-branding for its plural identities like the Buddhist Circuit, Himalayan Trail, or Coastal Belt.
Travel Access and Visa Constraints: Unlike India, which offers visa-free entry mainly to Bhutan, Nepal, and Maldives, countries such as China and Thailand extend visa-free access to a far larger number of nations, enhancing their ease of travel.
Sanitation Stigma: Despite Swachh Bharat, the global imagination of India is still tethered to poor hygiene. The “Visual Pollution” (litter/dust) at heritage sites contradicts the “Incredible” branding.
- For instance, excessive tourist-generated waste in hill stations such as Manali has led to littering, contaminating watersheds and undermining environmental sustainability.

II. Infrastructure

The “Last-Mile” Logistical Gap: While the Ude Desh ka Aam Naagrik (UDAN) scheme has improved air access, the “doorstep-to-monument” experience is broken. Potholed roads, lack of standardized signage, and poor public restrooms deter high-value travelers.
The 30% Utility Gap: According to Ministry estimates, only 30% of domestic circuits offer a seamless experience with integrated sanitation and road facilities.
Price Incompetitiveness: India is a “budget destination” that is oddly expensive. High GST (up to 18% on hotels) and the denial of Input Tax Credit (ITC) make Indian luxury stays costlier than those in Bali or Bangkok.

III. India Itself

The Skill Paradox: A massive 40% manpower shortfall. With only 1% formally trained staff, the “Service Culture” often shifts from Atithi Devo Bhava (Guest is God) to frustration due to language barriers and unprofessional guest relations.
Bureaucratic Friction:
- Immigration: Often viewed as a security screening rather than a tourist welcome.
- Regulatory Cobweb: Operators face a “license raj” (Fire, Police, FSSAI, Health) that varies by state, stifling the growth of SMEs and homestays.
Dissent & Diplomacy: Bureaucratic “over-sensitivity” to foreign critics (denying entry based on past views) creates a global perception of India as a rigid, rather than a confident, democratic destination.

Key Government Initiatives: Tourism Sector in India

1. Swadesh Darshan 2.0: Development of 50 top tourist destinations selected via a competitive “Challenge Mode” in partnership with States.

2. PRASHAD Scheme: Holistic development of identified pilgrimage and heritage destinations. Over 54 projects across 28 States/UTs are sanctioned to provide world-class amenities (cleanliness, lighting, last-mile connectivity) at major religious hubs.

3. Heal in India & Ayush Visa: Positions India as a global hub for Medical Value Travel (MVT). Launch of the ‘Heal in India’ portal and introduction of the Ayush Visa for foreign nationals.

4. “Wed in India” & MICE Tourism: Launched the “India says I do” campaign to capture the multi-billion dollar global wedding market.

MICE Strategy: A dedicated roadmap to position India as a premier destination for Meetings, Incentives, Conferences, and Exhibitions, leveraging new infrastructure like Bharat Mandapam and Yashobhoomi.

5. Infrastructure & Connectivity: UDAN Scheme- Expansion of regional air connectivity to 120+ destinations, including remote hill stations and the North East, to bridge the “last-mile” gap.

6. Digital & Skill Transformation: Incredible India Campaign – Global branding and digital promotion of India as a tourist destination.

Way Forward: Strengthening the Tourism Sector in India

Segmented Marketing: Move from a generic “one-size-fits-all” campaign to surgical, niche-based branding. Market Spiritual/Wellness to East Asia, Adventure/Wildlife to Europe, and MICE/Luxury to the Middle East.
Digital Renaissance: Integrate AI-powered trip planners and AR/VR virtual tours of monuments to engage tech-savvy global travelers. Partner with international influencers to showcase authentic, safe, and diverse local experiences.
Integrated Tourism Circuits: Ensure remote heritage sites have integrated amenities (standardized signage, high-speed Wi-Fi, and clean restrooms).
Private Sector Synergy: Scale the “Adopt a Heritage 2.0” project. Encourage private maintenance of site facilities through CSR and tax incentives, ensuring world-class upkeep without transferring monument ownership.
GST Simplification: Fix the Input Tax Credit (ITC) anomaly for the hospitality sector. Align tax slabs with Southeast Asian neighbors to make mid-range and luxury travel price-competitive.
“Visa on Arrival for the World”: Gradually expand “Visa on Arrival” to all low-risk nations to reduce bureaucratic friction and promote spontaneous travel.
Industry Status: Granting full “Infrastructure Status” to the hospitality industry to enable easier access to low-interest, long-term financing
Massive Skilling: Integrate tourism-specific vocational courses into the National Skill Development Mission to address the 40% workforce shortfall.
The “Welcome” Force: Expand the Tourist Police (with high female representation) and train immigration officers as “Cultural Ambassadors” to ensure a secure and friendly first impression.
Grassroots Empowerment: Promote Community-based Tourism and homestays (e.g., in Vibrant Villages) to ensure economic benefits flow directly to local residents.

Conclusion

To reach the goal of a $1 trillion tourism economy by 2047, India must pivot from passive promotion to active destination management. By integrating AI-driven personalization, sustainable “carrying capacity” frameworks, and a seamless “Visa-on-Arrival” regime, India can transform its cultural depth into a world-class, safe, and digitally-integrated global experience. The world is ready to visit India; India must now be ready to host the world.