The Economic Survey 2025 brings positive news for India's hospitality and tourism sector, highlighting a 7.1% growth in the first half of FY25. This robust performance underscores strong consumer confidence, rising domestic and international travel, and sustained demand for business and leisure tourism.

According to the Federation of Hotel & Restaurant Associations of India (FHRAI), the sector has fully recovered to pre-pandemic levels, contributing 5% to GDP in FY23 and generating 7.6 crore jobs. International tourism has made a remarkable comeback, with $28 billion in foreign exchange earnings, positioning India 14th globally in tourism receipts.

FHRAI’s Vision for Sustainable Growth

K Syama Raju, President of FHRAI, emphasizes the importance of sustainable tourism, improved infrastructure, and supportive policies to maintain this growth trajectory. He highlights key areas for policy focus: