With the government envisioning a USD 40 trillion economy by 2047, tourism is expected to play a transformative role, contributing a projected USD 4 trillion to the nation’s economic goals. However, with annual tourism allocations hovering around just half a billion dollars and inbound numbers lagging, the question remains: how can India bridge the gap between aspiration and execution? At SATTE 2025, industry leaders and government officials dissected this challenge while their insights revealed that India needs smarter, beyond just-business strategies to meet the Amritkaal aspirations.
For a nation on the cusp of an economic revolution, the numbers being projected are nothing short of ambitious. With India’s economy currently valued at USD 3.9 trillion, the government envisions a staggering USD 40 trillion economy by 2047—an aspiration that places tourism at the heart of this transformation.
The Union Tourism Minister in his recent speech has set the stage with a bold claim: that India’s travel and tourism sector alone could touch USD 4 trillion within the next 25 years, while the Prime Minister too has reinforced tourism’s crucial role, envisioning its contribution of at least 10% to the national GDP. Comparisons with global tourism giants like the U.S. and China where the tourism economies are already exceeding USD 1 trillion, further underscore the need for India to think bigger. But the ambition alone is not enough. Execution is key.
But with tourism allocations hovering around just half a billion dollars annually, the question looms—how can India unlock its true tourism potential with such limited resources?
Can India’s tourism industry sustain high growth rates year after year? Can it attract the level of investment needed to scale up infrastructure, diversify offerings, and make the country a magnet for global travellers? Most importantly, can it contribute meaningfully to job creation and economic resilience?
As we look ahead, the industry leaders, who came together for a panel discussion “Tourism Vision: The 2047 Impact” at SATTE 2025, answered these questions, emphasising that this goal is more than just numbers; it is about the structural reforms, increased funding, investment strategies, and policy shifts to make it a reality.
BUDGET SIZE NOT A CHALLENGE; OPTIMISATION THE REAL GAME-CHANGER
Setting the stage with a pressing concern, the panel moderator Aashish Gupta- Founder, Strategy Pluto & Consulting CEO -FAITH, said, “India’s tourism GDP stands at about USD 150 to USD 200 billion. To achieve a USD 4 trillion tourism economy by 2047, even a 1% investment of our current size should be around USD 2 billion annually. However, our tourism budget has always been range-bound around half a billion dollars. How do we unlock India’s tourism potential with such a small budget?”
Notably, the tourism ministry’s budget has surged to INR 2,541.06 crore from INR 850.36 crore in 2024-25, focusing on infrastructure, skill development, and travel facilitation. The sector generated 7.6 crore jobs in FY23. However, overseas tourism promotion funding has been slashed to just INR 3 crore from INR 30 crore last year—a major blow to inbound tourism.
Even though budget size remains a challenge, its optimisation is the real game-changer, according to Mugdha Sinha, IAS Director General Tourism, Govt. of India “It’s not about how big the budget is, but how well we allocate it. Data, digital tools, and strategic marketing must be prioritised. Rather than allocating all resources solely to product development, we should also ensure adequate investment in marketing and administration.”
She further emphasised that India, with a vast repository of cultural and natural assets, stands at an advantage similar to the Amazon marketplace model. “We don’t own the inventory—our museums belong to the Culture Ministry, ASI monuments to another, and infrastructure to different ministries. But what we do have is the power to market and sell this inventory effectively,” she noted. This calls for a paradigm shift where marketing is seen as a critical investment rather than a secondary function, she added.
Drawing an analogy from the Archimedes lever principle, which states “Give me a lever and a fulcrum, and I shall move the world,” Sinha emphasised the power of ideation in shaping tourism strategies. “We must recognise that we are part of the creative economy, supported by artificial intelligence and marketing as our key tools. While everyone is enamoured by the importance of technology, marketing is just as powerful a tool. If we aspire to reach 100 million foreign tourists by 2047, we must optimise these tools to make India’s tourism story more visible and viral.”
Sinha also spoke about how with evolving landscape, there is a widening gap in intergenerational policy making understanding that needs quick addressal. “Just as we work to bridge financial viability gaps, we must also pass on a well-rounded understanding of tourism to the next generation— the Zillennials—who will be the future custodians of the industry.”
“Tourism today is not just about destinations; it’s about experiences. The music economy, the concert economy, and adventure sports are all part of this creative ecosystem that will drive India’s tourism GDP to five times its current value, reaching USD 524 billion by 2029,” said Sinha, asserting that the nuanced understanding of traveller behaviour will help transform India’s tourism strategy and will create a domino effect of tourism on GDP.
“India has everything—diversity, demographics, and scale. If size matters in global tourism, India already has the right size. The question is: are we making the best use of our instruments? With a judicious and strategic approach, we won’t just meet our targets—we’ll surpass them,” she asserted.
INDIA NEEDS TO MAKE NOISE ON THE GLOBAL STAGE
While domestic tourism has driven post-pandemic recovery, it remains largely underdeveloped. Inbound tourism, which should be a key driver, contributes just a fraction of its potential. In stark contrast, tourism drives 10% of Turkey’s economy and nearly 25% of Thailand’s, while India’s contribution remains at a mere 5% of GDP.
In 2019, before the COVID-19 pandemic, India welcomed approximately 11 million foreign tourists. However, the total number of international travellers stood at around 19 million, with a significant portion being Indian citizens settled abroad. Even within the 11 million foreign tourist arrivals, estimates suggest that 50-60% were non-tourists. Where is the gap?
Addressing the pressing issues, Rajiv Mehra, President- IATO and General Secretary of FAITH, stressed that the fundamental issue is visibility. A staunch advocate for strengthening India’s inbound tourism sector, Mehra—who has consistently engaged with the Finance Minister and Prime Minister on this issue—asserted that without significantly enhancing India’s global presence, inbound tourist numbers will remain stagnant
“It is unrealistic to assume that foreign tourists are eager to enter India without active promotional efforts. While the G20 and the Prime Minister’s international visits presented golden opportunities to showcase India as a destination, we failed to capitalise on them. Other nations have aggressively marketed themselves and surged ahead, while we continue to rely on the outdated belief that tourism will grow on its own. It won’t.”
The lack of a robust marketing strategy has even led to foreign tour operators considering removing India from their brochures, Mehra shared. At WTM, several global players admitted that India’s lack of international promotions was pushing them to drop the country from their itineraries. “This is a warning sign India cannot afford to ignore,” he advised.
Frustration runs deep within the industry, but Mehra believes it must be converted into action, emphasising that the stakeholders and the government, must come together to rebuild India’s inbound tourism market. “We need sustained and strategic international marketing, familiarisation (FAM) trips, and active engagement with global tour operators. The message is clear—India needs to make noise on the global stage,” he said.
Some believe that traditional promotional methods have lost relevance, but Mehra dismisses this notion. “There is no ‘old way’ or ‘new way.’ What matters is whether it works,” he said, stressing that India must adopt a mix of proven traditional strategies and innovative new-age marketing approaches to regain its lost ground.
INVESTING IN TOURISM DATA, BRANDING AND SKILLING
As the global tourism industry is evolving rapidly, driven by technological advancements, geopolitical shifts, and changing consumer expectations, India needs to take notes. Citing the example of Saudi Arabia’s transition from an oil-dependent economy to a tourism-driven one, Dr Abhay Sinha, DG, Services Export Promotion Council (SEPC) stressed the importance of adapting to such trends. “The way we experience tourism today will undergo a sea change. We need to gear up for the future with a well-structured, step-by-step approach to tackle both short-term concerns and long-term goals,” he said, referring to DG’s reference of Archimedes’ principle.
Speaking on one of the challenges, Sinha highlighted the lack of reliable tourism data. “As AI-driven insights shape the future, data will define customer experiences. However, without robust data, finding solutions becomes difficult. Addressing this data gap is crucial.”
A lack of funding remains another significant roadblock in India’s global tourism push. The Market Access Initiative (MAI) under the Ministry of Commerce previously supported India’s efforts in inbound tourism. However, budget limitations have curtailed these initiatives. “Last year, we facilitated 200 overseas buyers to boost inbound tourism. This year, due to budget cuts, that number has dropped to 100,” Sinha revealed.
Meanwhile, foreign exhibitors continue to make their presence felt at major trade shows, highlighting the urgent need for India to scale up its marketing and branding efforts. He explained how smaller nations invest heavily in branding and promotion, while India struggles with funding constraints. “We have everything—rich heritage, diverse landscapes, and cultural depth—yet we fall behind in attracting global tourists. We must ask ourselves why,” he Pointed out. ATITHI, SEPC’s flagship initiative aims to address this gap by promoting India more aggressively on global platforms.
Going forward, a USD 4 trillion tourism economy would also demand an equally robust talent pool. The hospitality and tourism sector must align with global standards in service, management, and skill development. Public[1]private partnerships in education and training will be key. Resonating, Sinha also banked on skilling playing a major role in the future. “We must learn from global best practices; especially how other countries integrate technology into their training programs.”
INCENTIVES FOR FRONTLINE TOURISM PLAYERS
Sinha further called out for incentives for tour operators. “Providing financial and strategic support will motivate them to explore international markets and position India as a top global destination. If India is to emerge as a global tourism leader by 2047, we must invest in marketing, infrastructure, skilling, and policy support. The time to act is now,” suggested Sinha.
Responding to Sinha, DG Tourism pointed out that while India leads in GDP contribution from services, tourism remains undervalued despite its vast economic potential. She emphasised the need for a paradigm shift in how India perceives tourism—not just as a service sector, but as a thriving marketplace.
She underscored the urgent need to revive incentives for the service sector, particularly the Service Export Incentive Scheme (SEIS), which previously played a crucial role under DGFT. Having spent years in commerce, she acknowledged its past impact and stressed that frontline players—tour operators, event managers, and agencies—must be supported as they are the ones driving business.
Calling for stronger collaboration with commerce, the DG said, “If collaboration is possible, let’s bring association like IATO into the discussion and revisit the SEIS. While the scheme may have struggled due to shifting market dynamics, we can refine and adapt it with new components to make it more effective for both sides. It’s time to rethink, realign, and ensure our incentives reflect the evolving needs of the tourism and service industries.”
“If India is to emerge as a global leader, we must move from a goods-first to a service-first approach, ensuring that incentives match the dynamic nature of the tourism sector,” she said.
To this, Dr Sinha added, “We have been consistently reaching out the ministry regarding SEIS & other matters. While we have also provided alternative proposals, I believe an inter-ministerial meeting is necessary to address the issues.”
CHANGING THE LENS: THE INDIA STORY NEEDS RETELLING
Aalap Bansal, KPMG’s Partner- Government & Public Services, Industrial & Infrastructure Development Advisory and Co-Lead- Tourism, Sports and Leisure highlighted critical gaps in India’s tourism strategy, emphasising the need for a stronger narrative and better global visibility.
While some believe India is already well-known internationally, Bansal, who has worked with 15 global tourism destinations on their India access strategies, argued otherwise.
“Interestingly, if you speak to foreign travel agents, they know India, but they only know two or three destinations, and that’s about it. If you go a step further to second-tier players like OTAs and other entities within the ecosystem, they know India exists but don’t understand what India’s product is. If I were to ask them what India stands for, they wouldn’t be able to answer, and that’s been our biggest challenge,” he said.
According to Bansal, for a country of so much royalty and abundance, it is ironic that the greatest challenge is ‘the problem of plenty’—abundant offerings that are yet to be effectively packaged and presented to the world. Adding to this complexity is the fragmented approach across Indian states with their distinct messaging, creating inconsistencies in how India is marketed both domestically and internationally. “So, what exactly are we telling foreign tourists? A foreign tourist is not going to be swayed by just one conversation or a large-scale pitch; it must be a complete package that we’re selling.”
Bansal pointed out another major shortfall—data accuracy. The NSSO survey, once a critical tool, had flawed parameters, classifying work-related short trips (e.g. from Delhi to Noida) as tourism. Such discrepancies distort real inbound tourism numbers. A more precise, real-time data mechanism is essential to better understand and cater to the tourism market.
Beyond statistics, India’s image also suffers from outdated perceptions. While the infra and hygeine related concerns may have been valid a decade ago, significant progress has been made, said Bansal. “In fact, I must compliment the Ministry of Tourism for the strides made in infrastructure. While it may not be the best in the world, it is certainly on par with most global tourism destinations. Infrastructure, which was a challenge 10 years ago, is no longer as big a hurdle. What we need now is a perception shift. How do we achieve that?”
Bansal suggested learning from Saudi Arabia’s tourism strategy. The Saudi Ministry of Tourism successfully rebranded their country by hosting the WTTC conference, inviting global industry leaders to experience Saudi firsthand. This immersive exposure helped dismantle misconceptions and reposition Saudi Arabia as a tourism-friendly nation.
“Social media portrays India as a dirty country, unsafe, lacking infrastructure, but that’s not the reality. We can definitely change perceptions by inviting the world to experience India. Besides G20, I don’t think we’ve ever hosted a global conference or event of that scale to get international buyers and decision-makers to experience India firsthand. The G20 Summit was a step in the right direction but wasn’t fully leveraged for tourism promotion.”
A domestic success story comes from Ayodhya too, where UP Tourism invited 500 domestic and international travel agents to experience its transformation. This direct engagement led to a significant increase in footfall, proving that firsthand experiences drive positive perception shifts, said Bansal.
These best practices, if absorbed, especially when it comes to creating an environment that allows tourism to flourish, will make India inches closer to the 2047 goal, reiterated Bansal.
SUSTAINING THE G20 MOMENTUM
The G20 Tourism Summit was nothing short of a monumental achievement for India. The global and Indian delegation embarked on a journey across 60 destinations spanning the country, with over 200 events planned and executed. This unprecedented scale not only showcased India’s diverse tourism destinations but also underscored the country’s growing influence.
At the heart of its success was the then Secretary of Tourism, Govt of India, Arvind Singh IAS, who also shared his insights on what made the G20 event stand out and how has this laid the foundation for broader collaboration in future. “While other countries often limit their events to just a few locations, we took the G20 delegation on a journey through India’s heartland, allowing them to experience the country in its full vibrancy. This approach, which was based on connectivity, convention infrastructure, and regional cultural significance, proved to be a resounding success,” he said.
One of the most notable moments from the summit was the construction of a road that had never existed before. Delegates were the first to travel on a newly built route that led to Dholavira, an archaeological gem akin to Mohenjo-Daro. Once a remote location with no proper access, the road now allows travelers to explore a UNESCO World Heritage site that was previously difficult to reach. The impact of this infrastructure development was immediate. “During a recent visit, Gujarat government officers shared how weddings were now being held in Dholavira, signalling a shift in local economic activity. What was once an isolated site has now become a hub for tourism and local growth,” shared Singh.
The event also brought to light the untapped potential of regions like Siliguri. In a pivotal moment, the Chief Minister of West Bengal announced plans to build a convention centre in Siliguri—a move inspired by the success of the G20 event and also to strengthen tourism in the region.
The successful conduct of the G20 event in Srinagar too not only demonstrated the government’s commitment to ensuring safety and security but also had a transformative impact on the perception of Jammu and Kashmir as a tourist destination as well the local employment. “For many foreign delegates, the summit was their first glimpse of Srinagar’s serene beauty, and the experience led to a shift in how the region is viewed globally. I believe this will have a lasting impact on inbound tourism to the region,” Singh added.
The lessons learned from the G20 event go beyond the immediate success of logistics and security. They underscore the need for seamless collaboration between government bodies and the private sector to realise India’s tourism potential, shared Singh, pointing to the importance of working across ministries and with industry leaders to craft a unified strategy that positions India as a global tourism hub.
“We are making strides, but the key is integration. The G20 has laid the foundation for broader collaboration, and if we can carry this momentum forward, India’s tourism sector will be poised for long-term growth. We need to ensure all the pieces come together to boost India’s tourism sector,” he said.
To this, Bansal added, “Reflecting on the G20, I believe the foundation for future progress was truly established there. For the first time in G20 history, we reached a co-agreement that covers everything—from sustainability to both inbound and outbound tourism. What’s particularly significant is how it focuses on global collaboration and, if we can translate that vision to the national level, we’ll be in a good place to move forward, and the potential impact will be immense.”
GROWTH CANNOT COME AT THE COST OF CLIMATE
India is expected to be the biggest driver of aviation growth in the coming decades. Within the next 20 years, 44,000 aircraft are set to be delivered, with a significant share coming to South Asia, primarily India. But with growth comes the responsibility.
Singh, who has also previously headed the Airports Authority of India as Chairman, acknowledged the rapid expansion of aviation infrastructure claiming that India is set to be a major driver of both the regional aviation sector and the broader economy. “The numbers speak for themselves. Over the last decade, we’ve seen a sharp rise in the number of airports, aircraft orders, and passenger volumes. Domestic air traffic has also witnessed unprecedented growth, particularly in unserved and underserved regions.”
Singh highlighted that the airports like Guwahati, Bagdogra, Ranchi, Bhubaneswar, and Raipur had recorded over 25% year-on-year growth before the pandemic. “This trend is set to continue, driven by the penetration of low-cost airlines and improved infrastructure.”
However, he stressed the importance of balancing this growth with sustainability. “Sustainable aviation fuel is still a work in progress, but it must become a priority. The entire aviation ecosystem—from airlines to cargo systems, airport operations, and service providers—must collaborate to implement green solutions.”
Singh pointed to promising green developments in India’s airports. “Many airports are increasingly relying on green energy. Cochin Airport, for example, operates entirely on solar power. Across the Airports Authority of India’s network, more than 50% of energy needs are now met through solar sources.”
He emphasised that every stakeholder, from airlines to cargo handlers, must play a role in mitigating environmental impact. “Growth cannot come at the cost of climate. If we are to lead in aviation and tourism, we must ensure that sustainability is at the core of our strategy. We simply cannot afford to move forward otherwise.”
While the USD 4 trillion tourism vision is bold and inspiring, its realisation depends on India’s ability to align policies, perception management, infrastructure, marketing and industry efforts. Tourism must be positioned as a national priority, integrated across ministries and industries. If a giant economy like India can leverage its strengths while addressing its challenges proactively, it definitely has the potential to emerge as a global leader in tourism by 2047, the experts unanimously agreed.