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Tourism sector’s GDP contribution targeted to double to 10% over next decade amid infrastructure push

#Hospitality & Retail#Infrastructure#India
Last Updated : 3rd May, 2026
Synopsis

The Government has outlined plans to increase the tourism sector’s contribution to India’s GDP from 5.22 per cent to 10 per cent over the next decade, supported by rapid expansion in transport and infrastructure networks. The target was highlighted during the 15th edition of The Great Indian Travel Bazaar in Jaipur, where officials pointed to growth in airports, rail connectivity, and aviation capacity as key drivers. Domestic tourism has risen sharply, crossing 4 billion visits, while international arrivals and foreign exchange earnings have also doubled. The push is expected to require significant expansion in hotel capacity and destination development.

The Government has set a target to double the tourism sector’s contribution to India’s GDP from 5.22 per cent to 10 per cent over the next decade, supported by ongoing infrastructure expansion and rising travel demand, a senior official from the Ministry of Tourism stated during an industry event in Jaipur in the past week.


Addressing the inaugural session of the 15th edition of The Great Indian Travel Bazaar (GITB), the Additional Secretary and Director General of the Ministry of Tourism indicated that the target aligns with a broader national objective to scale up tourism’s economic contribution. It was conveyed that the sector is being supported by sustained investments in transport infrastructure, including aviation, railways, and road networks.

The official highlighted that the number of airports in the country has doubled over the past decade, increasing from 75 to around 150, while aviation capacity is expected to expand further, with the fleet projected to reach approximately 1,600 aircraft by the end of the decade, up from about 800 at present. Rail infrastructure has also expanded, with the introduction of faster train services improving connectivity across key tourism circuits.

Domestic tourism has recorded significant growth, with the number of visits rising from around 1.5 billion earlier in the decade to more than 4 billion in recent years. International tourist arrivals have also increased, doubling from approximately 10 million to 20 million over a similar period. Foreign exchange earnings from tourism currently stand at around USD 32 billion, reflecting the sector’s expanding economic contribution.

Despite this growth, the ministry indicated that the sector remains underutilised relative to its potential, given India’s geographic scale, cultural diversity, and range of tourism offerings. The 10 per cent GDP contribution target has been positioned as achievable, provided that capacity constraints are addressed.

The official called on industry stakeholders to significantly expand hotel capacity and develop destinations at scale, with a focus on improving quality standards to match global benchmarks. Enhancing accommodation supply and infrastructure is expected to be critical for handling rising domestic demand and attracting higher-spending international travellers.

The remarks also highlighted the need to retain outbound tourism expenditure within the country by improving the competitiveness of domestic destinations. Strengthening tourism infrastructure and service quality was identified as a key requirement for achieving this objective.

The outlook for the sector is closely linked to infrastructure-led growth, with improved connectivity expected to continue driving travel demand. The government’s target reflects a coordinated approach involving public investment, private sector participation, and destination development to expand tourism’s role in the broader economy.

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