India's public sector banks, which were struggling from legacy India's travel and tourism sector is experiencing robust growth, with both international and domestic tourism contributing to its expansion. The international tourist arrivals in 2024 touched a new record surpassing the pre-pandemic levels. Domestic tourist visits made an all-time record last year, driven by factors like rising disposable incomes and a growing middle class
India’s tourism sector, with rich heritage, cultural diversity and bountiful natural wonders has emerged as a travellers’ favourite and a key driver of the country’s economic growth.
With a vast area extending from the snow-covered Himalayan heights to the tropical rain forests of the south, India has a rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Forbes magazine ranked India as the seventh most beautiful country in its survey 'The 50 Most Beautiful Countries in The World' rankings. This provides a significant opportunity to fully exploit the potential of India’s tourism sector.
India being one the most popular travel destinations across the globe, the Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in the country. The sector has turned into a significant economic multiplier and is becoming increasingly important as the country strives for rapid economic growth and employment generation.
India is covered in beauty in all its nooks and corners. This nation's expansive landscape is decorated with the most diverse populations, cultures, and topographies. India also provides various geographical regions, world-class tourist attractions, and specialised travel services, including eco-tourism, heritage tourism, adventure tourism and medical tourism.
Recognizing its potential for employment-led development, the Union Budget 2025-26 allocated `2,541 crore to improve infrastructure, skill development, and travel facilitation. A major initiative includes developing 50 top tourist destinations in partnership with states, ensuring world-class facilities and connectivity.
To fulfill these commitments, 40 projects across 23 states were identified to be developed in partnership with the states. The Centre allocated interest-free loans of `3,295 crore to the states under the Special Assistance to States for Capital Investment. This funding aimed at supporting the creation of globally recognized tourist destinations by facilitating their development and strategic marketing. Additionally, the Swadesh Darshan Scheme 2.0, which focuses on sustainable and responsible tourism, would continue to expand; 34 projects have already been approved under this initiative, receiving `793 crore. To strengthen employment opportunities in the tourism sector, the government has allocated ` 60 crore for skill development in the financial year 2025-26. This funding will support intensive skill-development programs for youth, including training in hospitality management and other tourism-related services.
