 "Tourism industry regains 5% GDP contribution in FY23: Economic Survey")
The tourism industry regained its 5 per cent contribution to the gross domestic product (GDP) in FY23, the Economic Survey 2024-2025 stated.
“Trade, hotels, transport, and communication services are gradually catching up with the pre-pandemic trend,” the survey said. “These contact-intensive sectors faced challenges due to lockdowns, restricted demand for travel, and reduced demand for hospitality, entertainment, and personal services.”
According to Aashish Gupta, consultant chief executive officer (CEO), Federation of Associations in Indian Tourism and Hospitality (FAITH), domestic tourism has sustained the country’s tourism sector post-pandemic. He emphasised that the latest Economic Survey has highlighted the focused efforts of the government to strengthen domestic tourism through multiple schemes.
A few key schemes include the Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD) and Swadesh Darshan 2.0, aimed at developing tourism infrastructure in India and promoting domestic tourism.
Swadesh Darshan was designed for the integrated development of tourism destinations, including theme-based tourist circuits. It was reintroduced as Swadesh Darshan Scheme 2.0 in 2022, with the vision of developing sustainable and responsible tourism destinations, the survey noted.
Under this scheme, 34 projects have been approved, with a total funding of Rs 793.2 crore.
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Religious tourism accounts for over 60 per cent of domestic travel in India, according to a report by KPMG. In line with this, the Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD) aims to develop tourism infrastructure at identified pilgrimage destinations and heritage cities.
The survey report also stated that Bharat Gaurav trains have been introduced as theme-based tourist circuit trains to encourage tourism and showcase India’s rich cultural heritage and historical sites. Gupta added that this has strengthened India’s rail tourism segment.
“Under this scheme, the service provider is required to provide comprehensive tour services, including meals, accommodation, transport, sightseeing, and a tour guide. As of now, a total of 325 trips of Bharat Gaurav trains, carrying 1,91,033 tourists, have been operated, covering various tourist destinations,” the survey stated.
Apart from this, in line with the FY25 Budget announcement, the government of India approved 40 projects across 23 states for interest-free loans for 50 years, worth Rs 3,295.8 crore, under special assistance to states for capital investment.
Gupta explained that the previous year’s Budget had also announced interest-free loans through capital development for tourism projects across states to develop integrated tourism hubs.
Additionally, international tourist arrivals (ITAs) in India rebounded to pre-pandemic levels in 2023. The slow recovery in ITAs was a major concern for hotels and tour operators, according to the survey.
India’s share of ITAs in global ITAs stood at 1.45 per cent in 2023. Foreign exchange earnings through tourism amounted to $28 billion, and India received 1.8 per cent of global tourism receipts. This ranked India 14th globally in world tourism receipts during 2023.
However, the survey highlighted the need to further develop and enhance India’s international tourism infrastructure and global transport networks. This follows the smaller representation of India’s travel and transport segments in global exports, due to competition from other international tourism and logistics hubs.