Tourism sector estimated to grow at over 25% CAGR

The Indian tourism sector presents a compelling investment proposition, poised for significant growth according to Union Minister Gajendra Singh Shekhawat. The sector currently contributes over ₹20 lakh crore to India's Gross Domestic Product (GDP) and supports over 84 million livelihoods. Key performance indicators underscore this potential: India successfully hosted 20 million inbound tourists last year, complemented by a substantial volume of 2.94 billion tour trips made by domestic travellers. Crucially, the sector is estimated to grow with a Compound Annual Growth Rate (CAGR) exceeding 25%. This projected acceleration is supported by the government's strategic designation of tourism as a national priority, leading to unprecedented investment in supporting infrastructure, including highways, airports, and digital networks, which enhances travel efficiency and accessibility nationwide. The growth is also driving empowerment across local economies, creating opportunities for artisans, home-stay operators, and women entrepreneurs in eco-tourism, underscoring its broad socio-economic impact. Simultaneously, states like Madhya Pradesh are actively promoting themselves as prime tourism and film production destinations, demonstrating regional efforts to capitalise on this national growth trajectory. These robust figures and policy support signal a high-potential investment landscape.