CHENNAI: India’s tourism sector is experiencing a significant boom, fuelled by surging domestic travel and a rapidly expanding outbound market.
However, the sector risks turning into a drag on economy rather than a growth engine unless inbound international tourism accelerates to narrow the widening gap, warns Suman Billa, Director General of Tourism in India’s Ministry of Tourism.
Speaking at the inaugural session of Tourism Summit 2026, ‘Coming Home to Bharat: Exploring India’s Diversity’, organised by TNIE in Chennai on Friday, Billa said India’s scale and contrasts make it difficult to define the country through a single tourism lens — unlike smaller, more homogeneous destinations. “India’s diversity is astonishing,” Billa said, adding a decade of rapid economic growth has fundamentally altered how Indians travel.
As incomes and aspirations rise, tourism has become “second nature” for millions, driving demand at an unprecedented pace.
That growth is being reinforced by infrastructure expansion. If current plans hold, India could operate nearly 1,500 aircraft by 2030, implying a more than 200% increase in airline capacity, he said.
Yet the sector’s macroeconomic contribution remains modest. Tourism currently accounts for 5.22% of India’s GDP, slightly up from about 5% in 2022-23, but still well below the global average of around 10%. “We are operating at roughly half our potential,” he noted, pointing to Prime Minister Narendra Modi’s stated ambition to double tourism’s GDP contribution over the next decade.
The bigger concern lies overseas. India received about 20 million international tourists, generating $33.1 billion in foreign exchange. By contrast, 32 million Indians travelling abroad spent $35.2 billion, turning tourism into a net foreign exchange loser.
“Outbound travel is growing faster than inbound,” he said. “If India does not help grow tourism at home, the economic consequences will be serious.”
Domestic tourism is surging. Visits jumped to 4.1 billion from 2.9 billion — an increase of about 40% in less than a year. While this signals strong momentum, Billa warned it also brings capacity and sustainability challenges. He said his department is working with states to roll out ease-of-doing-business reforms.
Steve Borgia, founder-chairman and managing director of INDeco Group of Hotels, speaking on ‘The Domestic Traveller: Making Hotels Feel Like Home’, said tourism is a “magic sector” with no dead ends, unlike many other businesses. Recalling the challenges faced by the hospitality industry during the Covid-19 pandemic, Borgia urged entrepreneurs not to fear policy hurdles
At the session titled ‘Pilgrims Progress: Temples as Cultural Destinations’, historian Pradeep Chakravarthy said it is important to know what we are good at, what we are not, and to partner with those who excel in areas where we lack expertise.
He added that tourism can be enhanced by incorporating glimpses of local heritage and history into lodges in temple towns such as Kumbakonam.
Akanksha Garg, chairperson, Adventure Tour Operators’ Association of India – Women’s Collective, and art curator Ashvin E Rajagopal also addressed sessions respectively titled ‘Flying High: The Adventurous Indian’ and ‘Heritage as Magnet, Keeping History Alive’.
Earlier, Lakshmi Menon, chief executive officer of TNIE, set the context for discussions on how travel shapes identity and experience. The event opened with the lighting of the lamp by Mishra, Billa, along with Menon and TNIE Editorial Director Prabhu Chawla.