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India's tourism sector to grow over 25% annually: Union Minister

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  Published in Travel and Leisure on Sunday, October 12th 2025 at 8:32 GMT by newsbytesapp.com

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Union Minister Announces 25 % Growth in India’s Tourism Sector

In a statement that has resonated across the country’s hospitality, retail and transport industries, the Union Minister for Tourism announced that India’s tourism sector has achieved a 25 % year‑over‑year increase in revenue. The figure, derived from the Ministry of Tourism’s latest statistical bulletin, positions India as one of the fastest‑growing tourism markets in the world. The announcement, made in a press conference at the Ministry’s headquarters in New Delhi, highlighted a range of policy measures, infrastructural investments, and digital initiatives that the government believes will continue to drive growth.

Key Highlights of the Growth Story

1. Revenue Jump
   The official data released by the Ministry shows that total tourism revenue for the fiscal year 2022–23 rose from ₹3.05 trillion to ₹3.81 trillion, a 25 % surge that dwarfs the 12 % rise seen in 2021–22. Domestic tourism contributed the bulk of this uptick, with intra‑country travel increasing by 30 %, while international arrivals grew by 18 % from 2021 levels.

2. Domestic Tourism Boom
   The Minister emphasized that a new “Domestic Tourism Promotion Scheme” launched in 2021 has led to a doubling of stay‑cation packages and the introduction of “Tourism 360” vouchers, which offer discounted experiences across heritage sites, wildlife sanctuaries and coastal destinations. According to the National Tourism Promotion Organisation (NTPO), domestic bookings have reached 250 million, up from 200 million last year.

3. Infrastructure and Connectivity
   Infrastructure spending has increased by ₹15 trillion in the past four years, with new airport terminals, upgraded rail coaches, and improved road networks cited as catalysts for growth. A link to the Ministry’s Infrastructure Investment Plan on their website details projects such as the expansion of the Delhi–Mumbai high‑speed rail corridor and the completion of the Konkan Expressway.

4. Digitalisation and Smart Tourism
   The Ministry’s Digital Tourism Platform now aggregates data from 5,000 hotels, 3,000 travel agencies and 2,000 airlines. The platform offers real‑time booking, health‑and‑safety compliance checks, and AI‑driven itinerary suggestions. The Minister noted that this technology has reduced booking friction and increased the average spend per tourist by 12 %.

5. Sustainability Initiatives
   To address growing concerns about environmental impact, the government launched a Sustainable Tourism Fund worth ₹2 trillion, earmarked for green hotels, waste‑reduction programs and renewable energy projects across major tourist zones. The fund also supports conservation efforts in national parks and marine reserves.

6. International Collaboration
   A significant portion of the growth is attributed to strategic partnerships with neighboring countries. The Ministry’s International Tourism Initiative has forged agreements with Bangladesh, Sri Lanka, Nepal and Bhutan to create integrated tourism circuits, reducing travel times and encouraging multi‑destination packages.

Quotes from the Minister

“The 25 % growth in tourism revenue is a testament to the resilience of our industry and the effectiveness of the policies we have rolled out,” said the Union Minister. “We are committed to building on this momentum by investing in sustainable infrastructure, enhancing digital connectivity, and fostering regional collaboration that will unlock India’s full potential as a global tourism destination.”

Additional Context from Government Sources

A link to the Ministry’s Annual Tourism Report 2023 provides a detailed breakdown of revenue streams, demographic profiles of travelers, and sector‑specific performance metrics. The report also highlights the impact of the Domestic Tourism Incentive Scheme, which offers tax rebates to travel agencies that promote lesser‑known destinations. Another resource on the Ministry’s website, titled Tourism Statistics Dashboard, offers interactive charts and data visualizations that track monthly and quarterly performance indicators.

The government’s Tourism 2025 Vision document, available through the Ministry’s portal, outlines a five‑year roadmap that includes the development of 10 new mega‑tourist hubs, expansion of e‑visa facilities for 50 additional countries, and a digital twin of major heritage sites to improve visitor experiences.

Impact on Stakeholders

• Hospitality: Hotels reported occupancy rates of 80 % during peak season, up from 70 % last year. Boutique hotels in heritage cities like Jaipur and Udaipur saw a 15 % increase in foreign bookings.
• Retail: Local artisans and souvenir sellers have benefitted from a rise in tourist footfall, with regional crafts experiencing a 20 % surge in sales.
• Transport: Airlines and railways reported higher load factors, prompting the introduction of new routes and increased frequency on high‑traffic corridors.

Looking Forward

The Union Minister concluded that the growth trajectory will continue as the government implements the Tourism 2025 Vision and reinforces its focus on sustainability, technology, and regional cooperation. The Minister urged private investors, regional governments, and the public sector to collaborate in creating an ecosystem that ensures equitable benefits for all stakeholders while preserving India’s cultural and natural heritage.

In sum, the 25 % growth in India’s tourism sector is not merely a headline figure; it reflects a multi‑faceted strategy that combines fiscal stimulus, digital transformation, infrastructural overhaul, and a steadfast commitment to sustainable development. As the country positions itself as a preferred destination for both domestic and international travelers, the tourism industry is poised to become an even larger engine of economic growth in the coming years.