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Published 22:09 IST, January 31st 2025

Tourism Sector Bounces Back to Pre-Covid Level, Economic Survey Reveals

The tourism sector’s contribution to GDP regained the pre-pandemic level of 5 per cent in FY23.

Reported by: Deepak Agrahari
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Tourism Sector Bounces Back to Pre-Covid Level, Economic Survey Reveals | Image: FreePik

 Tourism contributed 5 per cent to the country’s GDP and generated 7.6 crore jobs in FY23, according to the Economic Survey 2025 tabled by Finance Minister Nirmala Sitharaman on Friday. The survey also mentioned that with international tourist arrivals (ITAs) rebounding to pre-pandemic levels, India’s share in global ITAs stands at 1.45%.

“The tourism sector’s contribution to GDP regained the pre-pandemic level of 5 per cent in FY23. The tourism sector created 7.6 crore jobs in FY23. 8.25 International tourist arrivals (ITAs) in India have rebounded to pre-pandemic level in 2023. The share of India’s ITAs in World ITAs stands at 1.45 per cent in 2023,” the Economic Survey mentioned on Friday.

Tourism’s Contribution to the Economy

Tourism is vital for the growth of any economy and to leverage India's diverse tourism geography, the government is pushing to enhance infrastructure and connectivity Additionally, foreign exchange earnings from tourism reached USD 28 billion, making India the 14th highest recipient of global tourism revenue.  “India received 1.8 per cent of world tourism receipts and attained a rank of 14th worldwide in world tourism receipts during 2023" the Survey Indicated.

Government Initiatives Boosting Tourism

To accelerate tourism growth, the government has launched key initiatives aimed at strengthening domestic tourism:

Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD): Focuses on developing tourism infrastructure in major pilgrimage and heritage cities.

Swadesh Darshan Scheme: Promotes integrated development of theme-based tourist circuits across the country.

Swadesh Darshan 2.0 (Launched in 2022): Emphasises sustainable and responsible tourism destinations, with 34 projects approved and ₹793.2 crore allocated for development.

"Another major initiative of the Government to promote domestic tourism is Swadesh Darshan, which is aimed at the integrated development of tourism destinations, including theme-based tourist circuits. This programme was rechristened as the Swadesh Darshan Scheme 2.0 (SD 2.0) in 2022, with the vision to develop sustainable and responsible tourism destinations. Under this scheme, 34 projects have been approved, with a total funding of ₹793.2 crore" the Survey mentioned.

River cruise tourism also witnesses a rise. "Improved waterways have benefited both cargo and tourism, with 82,587 passengers on day cruises by October 2024 and a fivefold increase in night cruise passengers to 11,431 in FY24 compared to FY19" the Survey indicated.

Economic Survey: Massive Scope for Growth

India has significant opportunities for growth, particularly in improving its international tourism infrastructure and expanding global transport networks. 

“There are opportunities for further growth, especially in enhancing international tourism infrastructure and global transport networks. India’s financial services sector lags behind the global average, highlighting the potential for growth in global banking, insurance, and investment services” the Survey noted.

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Updated 22:09 IST, January 31st 2025