Tourism powers economic revival and social equity
According to the latest World Tourism Barometer from UN Tourism, an estimated 1.4 billion tourists travelled internationally in 2024 marking a 99% recovery to pre-pandemic levels. This represents an increase of 11% over 2023, or 140 million more international tourist arrivals. But beyond the numbers lies a more profound transformation: tourism is no longer just a leisure industry—it's become a socio-economic engine, a soft-power strategy, and a technology-led frontier.
Recent projections indicate that the global travel and tourism industry is poised to reach $ 3.4 trillion, growing at a healthy CAGR of 8.4% from 2024 to 2029. Its overall contribution to global GDP is expected to hit $ 15.9 trillion in the same period, reflecting its expanding footprint across both developed and emerging economies. It's like a new era has begun for the global travel and tourism industry.
This robust turnaround has positively impacted many parts of the world including India. The West Asia with 95 million arrivals remained the strongest-performing region when compared to 2019, with international arrivals reaching 32% above pre-pandemic levels in 2024. Europe, the world's largest destination region, saw 747 million international arrivals in 2024 (+1% above 2019 levels and 5% over 2023) supported by strong intraregional demand. Asia and the Pacific continued to experience a rapid recovery in 2024 as well. And this robust recovery trend continues in 2025 too.
The resurgence in travel and tourism has created ripple effects across industries--from hospitality and retail to transportation and visa processing. In the process, it has led to job creation, both directly and indirectly, thus uplifting the regional economies that are dependent on inbound traffic.
India's tourism sector, rich in heritage, culture, and diversity, is emerging as a global favourite and a key driver of economic growth. Recognising its potential for employment-led development, the Union Budget 2025-26 has allocated ₹2541.06 crore to enhance infrastructure, skill development, and travel facilitation. A major initiative includes developing 50 top tourist destinations in partnership with states through a challenge mode, ensuring world-class facilities and connectivity.
From spiritual tourism in the heartlands to business travel across urban hubs, India is becoming a favourite destination for global travellers. India's Medical Value Travel (MVT) sector is witnessing significant growth. The market, valued at $2.89 billion in 2020, is projected to reach $13.42 billion by 2026, driven by increasing foreign patient arrivals seeking high-quality and cost-effective treatment.
India, long admired for its cultural and geographical diversity, is thus poised to become a global leader in tourism by enhancing infrastructure, boosting employment, and promoting diverse tourism segments, including spiritual, medical, and heritage tourism.
India has put in an efficient visa system and consular service delivery, which has attracted global tourists to the country. In a hyper-connected world, global tourists seek seamless and fast visa services, making travel a burden-free experience rather than a burden. India has successfully delivered this valuable service.
Technology has become the game-changer in providing effective and time-bound visa services, thus making lives easier for discerning travellers. The integration of Artificial Intelligence (AI), automation and biometric solutions has helped the visa processing firms to reduce turnaround times, arrest fraudulent activities and ensure a smoother travel experience.
As global mobility is on an uptick, governments across the globe are relying more on tech-enabled partners to manage higher volumes of visa processing without compromising on security and giving a smooth user experience. The firms working in this domain have embraced technology and created a helpful ecosystem for the tourists. In the process, travelling to India and immersing in its culture and diversity has become easier for inbound tourists.
As a key driver of economic growth, the tourism sector not only promotes development but also improves the quality of life by creating various job opportunities. It acts as a catalyst for regional economic upliftment as remote parts of the country, which are rich in culture and heritage, draw the attention of tourists. Many small-scale and cottage industries thrive on tourism, and for these units, tourism acts both as a source of income and employment.
Many villagers are now also setting up homestays, encouraging eco-tourism and also creating a source of earnings for themselves. Sustainability has become the buzzword in the global tourism circles, and many small towns and villages in India are riding this green mobility resurgence, making tourism a major employment generator in the remote parts of the country.
The tourism industry in the country is in a transformative era, shaped by demographic shifts, evolving technologies, and the pressing need for sustainability. As younger generations shape the future of travel with digital-first, experience-led preferences, the industry must evolve to meet rising expectations with smarter, more responsive services. The growing accessibility of AI, particularly Generative AI, promises operational efficiencies and a more personalised traveller experience, especially for those who can update their technology, teams, and thinking to harness it.
Looking ahead, tourism is expected to become one of the country's largest employment generators, with projections suggesting the need for over 61 lakh additional workers by 2036–37 as per CII-EY report. With a strong momentum already underway, the sector is well positioned to contribute not only to economic growth but also to social equity, regional development, and global integration.
This article is authored by Shikhar Aggarwal, joint managing director, BLS International Services Ltd.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
4 hours ago
- Mint
India to build fleet for fishing in deep seas dominated by China
India is finalizing plans to develop a modern deep‑sea fishing fleet to serve twin objectives: expanding the area for boats to find catch by more than threefold, and also curbing illegal and unregulated fishing, according to an official from fishery ministry who wish not to be quoted. The ministry will release a framework to sustainably harness fish from the country's exclusive economic zone (EEZ) and the high seas, stretching up to 200 nautical miles from the coast, the official said. At present, most Indian fishing activity is concentrated within 40–60 nautical miles, leaving nearly two‑thirds of the zone untapped. India is the largest fish-producing country after China, with about 8% share in the global output. The country saw a record production of 18.402 million tonnes in 2023-24. India is also one of the top seafood producers and exporting nations, with a total export value of ₹60,524 crore in FY24. Under the United Nations Convention on the Law of the Sea, every country has equal rights to fish in the high seas. India also aims to tap these resources to boost its exports with better returns, said the ministry official. China's deep-sea fishing operations are among the largest in the world. Its fleet operates in international waters and the EEZs of developing nations, catching millions of tonnes of fish annually, which not only supports its seafood export industry but also helps meet its domestic demand. However, some of the Chinese vessels are reportedly equipped with advanced surveillance and communication equipment, raising suspicions about their use in intelligence gathering. The official quoted earlier said India's proposed framework would provide guidelines for fishing activities in deep-sea areas and support fishing vessels with new indigenous technology. Indian operators shall be permitted to operate fishing vessels in the high seas under charter, lease, or joint venture arrangements, subject to compliance, according the official. An email sent to the ministry of fisheries on 1 August remained unanswered. 'Our fishermen are going only up to 12 nautical miles territorial waters and a little bitfurther. To go beyond, we need to have a bigger vessel with storage facilities, as you need tonnes of storage. So the need of the hour is big fishing vessels also with the required technology," said M. Ravichandran, secretary, ministry of earth sciences. In the Union Budget 2025-26, Union finance minister Nirmala Sitharaman mentioned that to unlock the untapped potential of the marine sector, the government will bring in an enabling framework for sustainable harnessing of fisheries from Indian exclusive economic zone and high seas, with special focus on the Andaman and Nicobar and Lakshadweep Islands. "...the framework will offer larger avenues and good sources of fish to fishermen and the exporters," said K.N. Raghavan, secretary general, Seafood Exporters Association of India (SEAI). 'Countries like China, the US and Taiwan have already ventured into deep-sea fishing and are making fortunes." However, according to Raghavan, since deep-sea fishing involves large vessels, the concerns of small fishermen should be addressed. "There has been a lot of anxiety among fishermen that once deep-sea fishing starts, their interests will be jeopardized," he said. 'So the need of the hour is to educate them and their concerns should be addressed."
Mint
7 hours ago
- Mint
NaBFID set to launch credit enhancement facility early next month to boost infrastructure bond issues
New Delhi: The National Bank for Financing Infrastructure and Development (NaBFID) is preparing to roll out a key credit enhancement facility by early next month, after the Reserve Bank of India releases the final guidelines on the framework, a senior official told Mint. The move, under which lenders will offer enhanced guarantees on bonds issued by infrastructure companies and special purpose vehicles, follows an announcement in the FY26 Union Budget authorising NaBFID to offer Partial Credit Enhancement (PCE). The facility is designed to improve the credit ratings of such bonds, making them more attractive to investors. However, its rollout is contingent on the RBI releasing the final framework for regulated entities such as NaBFID to issue PCEs. Samuel Joseph Jebaraj, NaBFID's deputy managing director, told Mint that the RBI is expected to issue its final guidelines on non-fund-based credit facilities sometime in August, providing a new and overhauled framework for PCE by regulated entities. 'This will clear our plan to launch PCE products soon after, maybe by early next month (September),' Jebaraj said. The RBI's revised norms are expected to allow regulated entities to offer PCEs covering up to 50% of a bond issue, up from the earlier cap of 20%. This would give NaBFID greater room to address credit rating concerns and support the fundraising plans of infrastructure companies more effectively. 'We are already funding the infrastructure sector in a big way, with additional disbursements expected to be around ₹ 70,000 crore in FY26, taking total outstanding disbursements to over ₹ 1.1 trillion," Jebaraj said. "PCE will add another product that would aid the sector to mobilise crucial funding from the market on attractive terms.' Cumulative sanctions by NaBFID currently stand at ₹ 2.5 trillion across sectors such as roads, renewable energy, ports, railways, water and sanitation, and city gas distribution. It is expected to rise to ₹ 3.5 trillion by the end of FY26. NaBFID is also in talks with the World Bank to collaborate on product design and risk-sharing frameworks to improve the creditworthiness of infrastructure bonds, lower borrowing costs, and strengthen investor confidence. 'Our talks with the World Bank are to share a portion of the credit risk associated with our PCE facility for the infrastructure sector. The World Bank's backing for our guarantees will further strengthen our capital allocation, allowing us to be competitive in our pricing for PCE products," Jebaraj said. "The talks with the World Bank are a work in progress, but this will not impact our plan to launch PCE, which will progress as per the plan.' At present, discussions are under way on the extent of counterguarantees the World Bank would provide, either fully or partially. The expectation is for an 80% guarantee on NaBFID's PCE exposure, for which the institution will pay a fee. A partnership with the World Bank would bolster NaBFID's capital efficiency, reduce its capital provisioning needs, and allow it to offer more guarantees at lower costs, ultimately encouraging more companies to tap the facility. Spokespersons of the ministry of finance, the RBI, the World Bank and the secretary of the Department of Financial Services didn't respond to emailed queries. While credit enhancement mechanisms help improve the credit rating of corporate bond issues, enabling issuers to access the market at more favourable terms, lenders must set aside regulatory capital to offer such guarantees, based on the underlying rating of the bonds. India's vision of a $30 trillion economy by 2047, built on smart cities and seamless connectivity, faces a persistent infrastructure funding gap of over 5% of GDP. Public capital expenditure has more than doubled from FY21 to and FY24, but private capital remains scarce. As things stand, insurers and pension funds, key sources of long-term finance, allocate only 6% of assets to infrastructure, deterred by long gestation risks and high capital intensity.
Economic Times
10 hours ago
- Economic Times
BSE, other capital market stocks slide up to 5% after report flags possible weekly expiry curbs by Sebi
Capital market stocks came under notable selling pressure on Tuesday, falling up to 5%, following reports that India's market regulator may be planning tighter controls to address speculative trading activity. ADVERTISEMENT Investor sentiment turned cautious after concerns emerged around potential curbs on weekly expiry derivatives, a move seen as an attempt to dampen short-term speculation. After these reports, the shares of BSE took the sharpest hit, falling 5% to their day's low of Rs 2,360, followed by Angel One shares, which tumbled 3%. Meanwhile, the shares of CDSL and Motilal Oswal slid by 1.9% and 1.1% respectively. According to a report by Zee Business, the Securities and Exchange Board of India (SEBI) is reportedly exploring a series of regulatory changes, including limiting the frequency of weekly could mean shifting from the current weekly expiry format to a bi-monthly or even monthly cycle. The proposal is part of a broader consultation effort aimed at reducing the pace of speculative trades in the options report cited sources familiar with the matter, adding that the Ministry of Finance is also involved in these discussions and has flagged concerns that the current weekly expiry framework may be contributing little to long-term economic value. ADVERTISEMENT Among the other ideas being considered, SEBI is also evaluating adjustments to the margin framework. This includes raising margin requirements for options trading while simultaneously easing margin obligations for cash market proposal under review is a potential tweak to the Securities Transaction Tax (STT). Officials are reportedly mulling a hike in STT on options trading to curb excessive speculation and a parallel cut in STT on cash market trades to incentivize more stable participation. ADVERTISEMENT However, Zee Business noted that any move on STT may only be feasible after the Union Budget next developments align with earlier remarks from SEBI whole-time member Ananth Narayan, who, just last month, voiced concerns over the overwhelming share of short-term F&O contracts in overall market volumes. He indicated that the regulator is considering long-term structural reforms to improve the quality of the derivatives market. This includes exploring longer-tenure contracts and more diversified product offerings to shift focus away from purely speculative bets. ADVERTISEMENT The regulatory introspection comes at a time when SEBI's own studies point to rising risks for retail participants in the F&O space.A study released on July 7 revealed that while the number of unique individual traders in the derivatives market dropped by 20% year-on-year, it still remained 24% higher than two years ago. Notably, the sharpest drop was observed among traders with a total turnover of less than Rs 1 lakh, even though this segment simultaneously saw the largest addition of new retail investors compared to 2023. ADVERTISEMENT SEBI's study also showed that net losses for retail participants widened by 41% year-on-year to Rs 1,05,603 crore in FY25 from Rs 74,812 crore in FY24, after factoring in transaction costs. The proportion of retail investors incurring losses remained consistently high, with 91%, roughly 9 out of every 10, ending up in the red, in line with previous findings. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
