India’s travel and tourism sector holds a significant position in its economy, offering a diverse range of specialized tourism products. These include adventure, medical, wellness, cultural, and religious tourism, among others. The sector’s contribution to India’s GDP was approximately $121.9 billion in 2020, underscoring its substantial impact on the nation’s economy.

Impact of Tourism on Other Sectors in India:

  • Fostering Infrastructure Growth: Adequate infrastructure is essential to attract and accommodate tourists, leading to positive impacts on various sectors:
  • Connectivity: The expansion of roads, railways, airways, and shipping networks is crucial for seamless travel. India’s airline market, valued at $20 billion in 2020, is set to double by FY27 due to improved airport facilities and enhanced passport accessibility.
  • Hospitality Infrastructure: Increasing demand for both luxury and budget accommodations has driven hotel chains like Accor and Wyndham to expand in India. OYO projects a $26 billion opportunity in India’s hospitality industry by 2030.
  • Medical Infrastructure: India’s affordable and advanced medical treatments, including traditional systems like Ayurveda, have established the nation as a medical value tourism destination. The sector is projected to grow at a CAGR of 21.1% from 2020 to 2027.
  • Digital Infrastructure: Tourism played a pioneering role in digitalizing processes such as flight and hotel bookings. Government initiatives like the National Integrated Database of Hospitality Industry (NIDHI) 2.0 aim to enhance digital infrastructure for the hospitality sector.
  • Amusement Infrastructure: Development of adventure activities like water sports, safaris, and winter sports has enriched the tourism experience. Plans to establish international-level adventure infrastructure in Kargil reflect this trend.
  • Promoting Art and Craft: Tourism significantly influences local art and craft markets, with tourists allocating around 40% of their budgets to souvenir purchases and craft products.

Initiatives to bolster local art and craft include:

  • Kutch Rann Utsav: This annual event in Kutch, a desert city, showcases local art, crafts, music, and dance, driving economic growth in the region.
  • Craft Experience Tourism: Governments are promoting craft safari models, such as the one in Srinagar, to engage tourists with local handicrafts. States like Kerala and Tamil Nadu have launched Craft Tourism Village projects.
  • Heritage Walks: Cultural heritage sites like Agra, Delhi, Hyderabad, Hampi, and Ajanta offer heritage walks to highlight tangible and intangible cultural legacies.


The Indian tourism sector plays a pivotal role in the economy, providing substantial employment opportunities and contributing to GDP growth. With initiatives like ‘Incredible India’ and ‘Atithi Devo Bhava,’ the government aims to tap into the sector’s vast potential. As the industry continues to evolve, its impacts on infrastructure development and the promotion of art and craft remain pivotal factors in India’s sustainable growth story.

Examples in the Indian Context:

  • The expansion of airport infrastructure leading to the growth of the airline industry.
  • Hotel chains like Accor and Wyndham expanding their presence in India.
  • OYO’s projection of a $26 billion opportunity in India’s hospitality industry by 2030.
  • The growth of medical value tourism due to affordable and advanced medical treatments.
  • Government initiatives like NIDHI 2.0 for digital infrastructure development.
  • Plans for developing adventure infrastructure in Kargil.
  • Kutch Rann Utsav boosting the economy through local art and craft.
  • Craft safari models promoting local handicrafts in Srinagar.
  • Craft Tourism Village projects in Kerala and Tamil Nadu.
  • Heritage walks highlighting cultural legacies in various cities.
  • The Indian government’s branding and marketing initiatives ‘Incredible India’ and ‘Atithi Devo Bhava.’
Legacy Editor Changed status to publish April 11, 2024