India’s atomised travel and tourism sector is underperforming and could continue to do so if policymakers fail to act to support the industry as a whole, experts are warning. Having reached a record of ₹3.1TN in 2024’s visitor spend, beating 2019’s peak by nine percent, the Indian sector now needs major infrastructure investment and “clear, consistent policy support,” according to voices among the country’s leading economists and the World Travel & Tourism Council (WTTC).
That support should include, the WTTC says, the reinstatement of funding for overseas tourism promotion, the budget for which has been slashed even though India continues to attract far fewer foreign tourists than many smaller economies. But with travel and tourism still not formally recognised as an industry and instead treated as a coalition of services, regulatory reform is required.
Over reliance on domestic market
There’s a suggestion here that India has been sitting on its laurels. After what WTTC calls “a strong period of domestic reliance” and domestic spending predicted to outstrip international visitor spending more than five times by 2035, the WTTC argues that the sector has still not yet reached its “true potential”, which, if achieved, would see its GDP contribution lifted to reach 10-11%.
Adding to the pressure, one of India’s top economists, Sanjeev Sanyal, a member of the Prime Minister’s Economic Advisory Council, has criticised the Indian government for “simply not doing anything much” as far as tourism is concerned. His words echo those of one of India’s most powerful men, Amitabh Kant, who conceived the ‘Incredible India’ campaign during his early and mid-2000s tenure at the Ministry of Tourism.
Inspired by PM Modi’s message in Mann Ki Baat, this winter becomes an invitation to rediscover India. From snow-laden peaks to warm cultural getaways, IRCTC Tourism proudly supports this vision and welcomes travellers to experience the extraordinary beauty of winter across the… pic.twitter.com/DBn1x5ba3g
— IRCTC (@IRCTCofficial) December 1, 2025
Calls for reform
Together, the pair are just the loudest expressions of what Skift calls “a growing view among the policy establishment”, arguing that it’s time to build on the domestic market’s momentum while increasing the international visitor spend. That, they say, will entail policymakers treating the sector as a driver of national growth and channelling efforts into better-designed destinations.
Their call is supported by numerous different stakeholders, including the Hotel Association of India, the Association of Domestic Tour Operators of India, the Indian Association of Tour Operators, the India Food Tourism Organisation, the Tourist Guide Federation of India, and the Adventure Tour Operators Association of India.
Need for transport and visa streamlining
Part of the work to be done, the WTTC suggests, involves investing in “high-speed rail and smart mobility solutions” as well as recognising the “significant opportunity to foster homegrown entrepreneurship, particularly in luxury travel experiences, which are gaining strong traction among new generations of travellers and investors.”
Noting the impact of bureaucratic brakes on that traction, Julia Simpson, WTTC President & CEO, said the group strongly supports the streamlining that will come from “the government’s plans to simplify the e-visa process. While visa-on-arrival and e-visa systems are in place, reciprocal policies and long delays for key markets like the US, where appointments are reportedly unavailable until 2026, continue to hinder tourists.” Simpson added: “Making it easier to visit India is one of the fastest ways to unlock further international arrivals and spending.”
