India's travel and tourism sector headed to touch 10 pc of GDP soon

New Delhi, April 17 (IANS) India’s travel and tourism sector, which currently contributes 7 per cent of the country's GDP, will soon reach the global average of 10 per cent, World Travel and Tourism Council CEO, Julia Simpson, has said.

In a video message at the 'India Travel & Tourism Sustainability Conclave 202'5 here, she said the country’s travel and tourism sector offers an extraordinary opportunity and is expected to clock a growth rate of 7 per cent.

Simpson praised Prime Minister Narendra Modi for increasing investments in travel and tourism and seeing the potential of the sector to transform the living conditions of communities and the lives of people.

Emphasising the need for sustainable practices in the sector, she said about 4.8 per cent of India's greenhouse gas emissions come from the travel and tourism sector.

She also pointed out that India is reducing the "carbon intensity faster than the global average as it is going down by 13 per cent".

The first edition of the India Travel & Tourism Sustainability Conclave, organised by MakeMyTrip Foundation and World Travel & Tourism Council India Initiative (WTTCII), was held in New Delhi.

The event also saw the launch of the Sustainable Hospitality Handbook, developed by the Hotel Association of India (HAI) in collaboration with MakeMyTrip. The handbook offers hotels a 'practical framework' to adopt 'environmentally responsible' practices across energy, water, waste, and community impact.

Addressing the event, MakeMyTrip founder Deep Kalra said sustainable tourism sector, though currently modest in scale, is projected to experience remarkable growth over the next decade.

He highlighted on the vast potential of eco-conscious travel within the country which is expected to become among the fastest growing markets.

Despite the promising outlook, Kalra highlighted that only a small fraction of India's current tourism activity can be classified as sustainable. This, he pointed out, stands in stark contrast to global trends where sustainability is becoming a core focus.

Suman Billa, additional secretary in the Ministry of Tourism, during a panel discussion at a conclave here, also said, "informal consultations" have started with states on the top 50 tourist destinations in the country which will be developed in a "challenge mode".

India’s tourism sector, rich in heritage, culture, and diversity, is emerging as a global favourite and a key driver of economic growth. Recognizing its potential for employment-led development, the Union Budget 2025-26 has allocated Rs 2,541.06 crore to enhance infrastructure, skill development, and travel facilitation. A major initiative includes developing 50 top tourist destinations in partnership with states through a challenge mode, ensuring world-class facilities and connectivity.

With committed efforts, tourism is set to drive India’s progress toward becoming a developed nation by 2047.

Foreign exchange earnings through tourism were $28 billion. India received 1.8 per cent of world tourism receipts and attained a rank of 14th worldwide in world tourism receipts during 2023.

--IANS

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