India becomes world’s 8th largest tourism economy surpassing Japan and France: Read how Modi government’s efforts turned around the sector
India has etched its name on the global tourism map by setting a new benchmark in the world of international travel and hospitality. According to the World Travel and Tourism Council (WTTC) report, India became the eighth-largest tourism economy in the world in 2024–25. Its earnings from the tourism sector have surged to an impressive USD 231.6 billion, which is nearly ₹19.4 lakh crore.
This is a significant jump for India, which held the 10th position last year. The country has now surpassed Japan and France, moving two steps ahead in the global ranking. The United States remains the world leader in tourism earnings with USD 2.36 trillion, followed by China, Germany, Japan, the United Kingdom, France, and Mexico.
For India, securing a position in this list is not a trivial achievement. Under the leadership of Prime Minister Narendra Modi, it is a testament to the visionary policies, consistent efforts, and strategic planning of the Indian government.
A decade ago, India’s tourism economy was not this strong. According to WTTC’s 2013 report, India’s tourism growth rate was around 6–7 percent, but the country’s global ranking lingered around the 24th position or even lower. That year, the number of foreign tourists visiting India stood at approximately 6.97 million. By 2019, this number increased to 10.93 million, yet the overall contribution of tourism to India’s GDP remained limited to around 5–6 percent.
It was also important to note that the tourism sector at that time was grappling with several challenges. The country had only 74 operational airports in 2014, road infrastructure was in poor condition, there was a shortage of quality hotels, and the visa process was slow. These issues posed a significant obstacle for international tourists and domestic travellers alike. Matters worsened in 2020 during the outbreak of the COVID-19 pandemic, which brought the global tourism industry to a halt. India was no exception. The number of international visitors to the country plummeted to 2.74 million, and tourism’s share in GDP dropped to 4 percent. Hotels, travel agencies, tour guides, and local businesses suffered huge losses. The situation flipped to grim, and the future looked uncertain.
However, what followed in the post-pandemic years was a story of resilience, reform, and remarkable recovery. By 2023, India had recovered 87 percent of its pre-pandemic foreign tourist traffic. It welcomed around 9.52 million international visitors. At the same time, domestic tourism witnessed a dramatic rise, with over 2.5 billion domestic trips made across the country in 2023 alone. This swift recovery which can be seen in the result of policy reforms, focused planning, and substantial investment by the Indian government.
The transformation in India’s tourism sector did not took place overnight. It was due to the result of a series of strategic initiatives taken over the past decade. Since 2014, tourism has been made a priority sector. The budget allocation for tourism rose from ₹500 crore in 2014 to more than ₹2,400 crore in recent years. The iconic ‘Incredible India’ campaign, originally launched by the Atal Bihari Vajpayee-led government in 2002, strengthened and made more dynamics in the tourism sector. Promotion through social media, cinema, and digital content played a key role in capturing global attention. Travel-related content showcasing India’s culture and diversity contributed to building a powerful image of the country in the international tourism market.
Government initiatives like the Swadesh Darshan scheme, launched in 2014–15, also played a crucial role. Under this scheme, thematic tourism circuits were developed, such as the Buddhist Circuit, Ramayana Circuit, and Wildlife Circuit. However, in the beginning, the scheme was spread no popular across various states, which dissolved its overall impact. Recognizing this, the government launched Swadesh Darshan 2.0 in 2022, which adopted a focused, site-specific approach. This new phase of the scheme emphasized sustainable tourism, aiming to boost the local economy while preserving the environment. In its pilot phase, seven destinations, including Orchha (Madhya Pradesh), Gandikota (Andhra Pradesh), and Bodh Gaya (Bihar), were selected for development.
Another significant initiative was the PRASAD scheme (Pilgrimage Rejuvenation and Spiritual Augmentation Drive), which aimed at the enhancement of religious and spiritual sites across India. Projects such as the Kashi Vishwanath Corridor, the redevelopment of Kedarnath, and the development of Ayodhya have given a new dimension to religious tourism in the country. 73 PRASAD projects have been followed, as of 2024 with an investment of ₹1,400 crore. These projects not only improved infrastructure at sacred sites but also created thousands of jobs and boosted the local economy.
Infrastructure development has been another cornerstone of India’s tourism revival. From 2014 to 2025, the total length of national highways increased from 91,000 km to 1.46 lakh km. The railway electrification rate touched 98 percent, while the capacity of Indian ports doubled. The UDAN (Ude Desh ka Aam Nagrik) scheme led to the opening of 88 new airports, improving air connectivity to small towns and remote regions. The introduction of Vande Bharat trains further enabled faster, more comfortable travel. Investment in hotels increased as well, with 40 projects worth ₹3,295 crore approved in 2024 across 23 states, aimed at establishing world-class tourism centres.
One of the revolutionary reforms has been the simplification of India’s visa policy. E-visas are now available to citizens of 167 countries, and the streamlined online process has led to a surge in foreign tourist arrivals. India also positioned itself as a global hub for medical tourism, leveraging its affordable and quality healthcare services, including Ayurveda, Yoga, and modern medicine. In 2024 alone, foreign visitors spent ₹3.10 lakh crore, exceeding the pre-pandemic figures of 2019.
Efforts towards beautification and cleanliness were also intensified. The Swachh Bharat Abhiyan significantly improved the cleanliness of tourist hotspots, including areas around the Taj Mahal and Ganga ghats. India now boasts 43 UNESCO World Heritage Sites, placing it in the 6th position globally. The country is also focusing on natural, cultural, and adventure tourism, offering everything from the Himalayan mountains and Goan beaches to wildlife safaris and river rafting experiences.
Prime Minister Narendra Modi has played a key role in promoting Indian tourism on a personal level. His visit to Lakshadweep in 2024, accompanied by social media posts and videos, created a buzz online. In his posts, he stated, “Look at the beauty of Lakshadweep, it’s no less than the Maldives.” This led to a doubling of tourist arrivals in Lakshadweep, from less than 1 lakh in 2023 to over 2 lakh in 2024. Flight operations increased by 88 percent, and his posts on platform ‘X’ (formerly Twitter) reached millions.
Modi also inaugurated the Kashi Vishwanath Corridor, which played a significant role in increasing tourism in Varanasi. Visitor numbers rose from 5 crore in 2014 to 7.2 crore in 2022, with the corridor itself receiving 10 crore visitors. Daily footfall ranged from 1.5 to 2 lakh devotees. Hotel bookings doubled in the region, and the local economy also flourished.
In Gujarat, Modi promoted the Statue of Unity, highlighting it as the world’s tallest statue, which now draws around 5 million visitors annually, strengthening the local economy. After the abrogation of Article 370, he encouraged people to visit Kashmir, calling it a "paradise." His words and government initiatives led to an increase in movie shoots and tourist visits, with over 2 crore tourists visiting Kashmir in 2024. Similarly, the Northeast regions, including Loktak Lake in Manipur, witnessed a 30 percent rise in tourism.
India’s tourism promotion was also a key part of the country’s international diplomacy. During G20 summits, cities like Delhi and Varanasi were showcased. The International Yoga Day became a global movement, further driving health and wellness tourism. Modi’s international trips to countries like Croatia, Cyprus, and Kuwait were strategically used to highlight India's tourism offerings.
Medical and cultural significance in tourism
India’s affordable and high-quality medical and cultural tourism has become a magnet for international travellers. In 2024, millions of foreign patients visited India for treatments. Alongside the growing number of UNESCO World Heritage sites, the appeal of India’s natural beauty (like the Himalayas and Goan beaches), its cultural richness (Taj Mahal, Ajanta–Ellora), and adventure options (trekking, rafting) made India a compelling destination.
Due to these developments, domestic tourism spending increased by 95 percent, and tourism’s overall contribution to GDP reached 6.6 percent, amounting to ₹21 lakh crore. International tourists spent ₹3.1 trillion (USD 36.8 billion) in 2024, a 9 percent increase from 2019, while domestic spending stood at ₹15.5 lakh crore, 22 percent more than 2019. The WTTC projects that by 2025, India’s tourism economy will reach ₹3.2 lakh crore.
This success is no accident. Since 2014, India has witnessed policy transformation, promotion of private investment, and adoption of public-private partnership models. Rapid vaccination during COVID-19 helped speed up recovery. WTTC predicts that by 2034, India will become the fourth-largest tourism economy, contributing ₹42 lakh crore to the economy and creating 64 million jobs.
Challenges faced by the Indian tourism
Yet, challenges remain. WTTC CEO Julia Simpson noted that “India has everything, but it needs better global promotion.” Moreover, overtourism in destinations like Goa has raised concerns regarding sustainability and environmental impact.
Looking ahead, the Indian government has set a goal of building a USD 3 trillion tourism economy by 2047. The focus is on digital tourism, including mobile apps and virtual tours, and rural tourism, which could provide employment opportunities in villages. The 2025 Union Budget allocated ₹20,000 crore for tourism development, with ongoing projects worth ₹3,300 crore across 23 states, including new roads, airports, and digital integration.
India’s entry into the top 10 global tourism economies is a proud moment for every Indian. It is a result of Prime Minister Modi’s foresight, government policy reforms, and the hard work of citizens. Tourism is not merely an economic driver, it is a powerful medium for taking India’s culture, history, and diversity to the global stage.
From the ghats of Kashi to the beaches of Lakshadweep, India is beautiful in every corner. If promoted wisely, with a focus on sustainability and infrastructure, India could soon find itself among the top five global tourism economies. This is a moment of national pride. The message is clear for the world,“Come, visit incredible India!”
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