The tourism and travel (T&T) industry in India plays a crucial role in contributing to the country's GDP. According to the World Travel and Tourism Council (WTTC), India ranks 8th globally and has experienced a growth rate of 6.7% in terms of the industry's contribution to the real GDP, amounting to $234.03 million. From 2012-13 to 2017-18, the T&T industry has maintained a Compound Annual Growth Rate (CAGR) of 7.4%. This sector's contribution to India's GDP is expected to grow steadily at 5.5% annually by 2028.

However, the growth of the T&T industry relies on various factors such as government policy initiatives and global political-economic scenarios, including disruptions like the Covid-19 pandemic.

The Medical Tourism sector is predicted to witness significant growth, with a projected CAGR of 21.1% from 2020 to 2027.

The travel market in India is estimated to reach US$125 billion by FY27, surpassing the estimated US$75 billion in FY20.

Furthermore, international tourist arrivals are expected to reach 30.5 million by 2028, indicating a rising interest in India as a tourist destination.

According to the latest report from the WTTC, the tourism sector in India is projected to create an additional 1.6 million jobs this year, contributing to the country's economic growth. The recovery of global tourism is expected to reach pre-pandemic levels of USD 10 trillion, attributed to the reopening of international travel, particularly by Chinese tourists.

Recognizing the immense potential for job creation and entrepreneurship, the Ministry of Tourism has been allocated a budget of US$2.1 billion in 2023-24.

Under the Union Budget 2023-24, an outlay of US$170.85 million has been assigned to the Swadesh Darshan Scheme.

In terms of job creation, the travel and tourism sector added 10.2 million jobs in 2022, with an additional 1.6 million jobs expected to be created in 2023. By 2033, the sector is projected to support 58.2 million jobs in India.

While the industry faces challenges such as inflation and labour shortages globally, efforts are being made to promote sustainable tourism practices, including the adoption of renewable energy sources and efficient resource management.