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Energy
In recent years, the tourism sector in India has been gaining prominence as a key economic driver. Union Tourism Minister Gajendra Singh Shekhawat highlighted at the Tourism Sustainability Summit 2025 that the tourism industry has immense potential to become the largest contributor to India's GDP. This sector has experienced significant growth, recovering from pre-pandemic levels and creating substantial employment opportunities. Let's explore the factors contributing to the tourism industry's potential and the challenges it faces.
The Indian economy is expanding rapidly, and the tourism sector is poised to match this pace. Minister Shekhawat emphasized the need for sustainable growth, addressing climate challenges and promoting local involvement. The government's initiatives, such as the Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD) and the Bharat Gaurav trains, have significantly strengthened religious and cultural tourism[1][2][3].
Climate change poses a significant threat to tourism, with issues like glacier constriction affecting popular destinations. Minister Shekhawat stressed the urgency of addressing these challenges through immediate intervention and collaborative efforts among industry leaders[2]. The tourism sector must adopt sustainable practices to mitigate these impacts and ensure long-term viability.
The tourism industry has already shown impressive economic results. In FY23, it contributed about 5% to India's GDP and created over 7.6 crore jobs[3]. The potential for further growth is immense, with estimates suggesting it could add $253 billion to the GDP[5]. Investor Vijay Kedia highlighted the sector as an "untapped goldmine," with potential to reach $1 trillion if challenges are addressed effectively[5].
The Indian government has launched several initiatives to support the tourism industry, including:
The tourism industry in India stands at the threshold of becoming a major economic powerhouse, with its potential to significantly contribute to GDP growth. Addressing climate challenges, investing in infrastructure, and promoting sustainable practices will be key to unlocking this potential. As India aims to become the third-largest tourism destination by 2047, it is crucial for stakeholders to collaborate and adopt best global practices to ensure sustainable and responsible tourism development.