India’s Travel Sector to Hit $500 Billion by 2035: WTTC

by R. Suryamurthy June 3, 2025

By R. Suryamurthy June 3, 2025 0 comments 3 minutes read

WTTC President & CEO, Julia Simpson. PHOTO: WTTC

India’s Travel & Tourism sector is poised for explosive growth over the next decade, with its economic contribution expected to nearly double by 2035, according to a new report from the World Travel & Tourism Council (WTTC).

Titled “2025 Annual Research: Key Highlights,” the report forecasts that the sector will contribute ₹41.9 trillion (US$501.1 billion) to India’s GDP by 2035, up from a projected ₹22.5 trillion (US$268.7 billion) in 2025.

Alongside this economic surge, the industry is projected to generate nearly 16 million new jobs and see a major increase in domestic and international visitor spending—positioning travel and tourism as a key pillar of India’s long-term growth strategy.

Julia Simpson, WTTC President & CEO, highlighted the pivotal role of international visitors in this resurgence. “India’s Travel & Tourism sector is experiencing unprecedented growth, with international visitor numbers now at record highs after a period of strong domestic reliance,” she stated. The country welcomed an impressive 20 million international visitors in 2024, surpassing 2019 figures by 2.3 million, underscoring India’s growing appeal as a global destination.

India’s Travel & Tourism sector is on track for an incredible surge, with its contribution to the nation’s GDP expected to nearly double from 2024 levels, reaching a staggering ₹41.9 trillion (US$501.1 billion) by 2035. This represents a robust Compound Annual Growth Rate (CAGR) of 6.4 per cent from 2025. For comparison, the sector is projected to contribute ₹22.5 trillion (US$268.7 billion) in 2025.

The sector is set to be a powerhouse of employment, with forecasts indicating the creation of 15.8 million new jobs between 2025 and 2035. By 2035, the Travel & Tourism sector is expected to directly support an astounding 63.9 million jobs across India. In 2025, the sector is forecast to provide 48.2 million jobs, accounting for 9.4 per cent of all jobs in India.

Domestic visitor spending will remain the dominant force in the sector’s expansion. By 2035, domestic visitor spending is projected to hit an impressive ₹32.7 trillion (US$391.2 billion). This marks a significant jump from the projected ₹16.8 trillion (US$200.8 billion) in 2025. International visitor spending is also on an upward trend, expected to reach ₹4.6 trillion (US$55.5 billion) by 2035. In 2024, domestic visitor spending constituted 83.5 per cent of total spending, with leisure accounting for 94.3 per cent and business for 5.7 per cent.

Environmental and Social Progress (2023 Data)

The report also sheds light on the sector’s environmental and social performance. In 2023, Travel and Tourism’s share of total economy Greenhouse Gas (GHG) emissions was 4.8 per cent, a decrease from 5.9 per cent in 2019. GHG intensity, measured as kgCO2e per US$ of GDP, also improved, falling from 1.48 in 2019 to 1.29 in 2023. In terms of energy, fossil fuels made up 87.0 per cent of the sector’s energy mix in 2023, with low-carbon energy at 3.8 per cent and biofuels and waste at 9.2 per cent.

Socially, the sector is contributing significantly: in 2023, female employment represented 12.5 per cent of direct Travel & Tourism employment, youth (15-24 years) employment stood at 13.4 per cent, and high-wage employment accounted for 63.5 percent. Furthermore, the sector contributed US$79.6 billion in tax revenues, making up 11.6 per cent of government revenues in 2023.

Note: All figures for 2025 and beyond are forecast projections based on constant 2024 prices and exchange rates. The report’s data suggests an approximate conversion rate of 1 US dollar = 84.77 Indian Rupees.