
Tourism sector can emerge as largest contributor to India's GDP, says Union Minister Shekhawat
Mar 26, 2025
New Delhi [India], March 26 : Union Tourism Minister Gajendra Singh Shekhawat emphasized the crucial role of tourism industry stakeholders in driving the sector's massive expansion, predicting that it will become the largest contributor to India's GDP growth in the coming years.
The Union Minister was speaking at the Tourism Sustainability Summit 2025, organized by FHRAI (The Federation of Hotel & Restaurant Associations of India), in the National capital on Wednesday.
He said that the tourism sector is the growth engine of our country. Indian economy is increasing at a fast pace and likewise, the country's tourism sector has immense potential to make advancement at a parallel speed.
Shekhawat said that the world is mesmerized by the fast growth of the Indian economy and this was a topic of discussion at a recent summit in Davos that the Indian economy may get doubled in a span of eight years. The Union Tourism Minister underlined the challenges being posed by alarming climate change to this sector that required immediate attention. Climate change is knocking at our door as the glaciers are constricting and this requires immediate intervention.
The Union Tourism Minister said our tourism sector was facing serious challenges and this required immediate brainstorming by the Industry leaders and everyone should take the pledge to own the responsibility. If we fix our development target and work accordingly, we will attain the target.
Additional Secretary, Ministry of Tourism, Suman Billa, said that Artificial Intelligence (AI) can contribute to the growth of the tourism sector as a large number of tourists are using app-based applications. India is aspiring to become the third-largest country in the world in terms of the tourism sector by 2047. Incredible India should include best global practices.
He said that the world is growing but not as fast as India is growing.
"Are we going to grow bigger or are we growing to grow better, this is the challenge. Whether we are growing to grow better and make it sustainable is the challenge. If the tourism sector is left unmanaged, it may lead to cultural dilution. We have to make tourism to empower our cultural heritage. Mission Life is another important area. It is about daily life activity, from mindless consumption to mindful living," Billa said.
Ministry of Tourism has launched its own sustainability programme. This industry can support the local craft in a big manner and it can lead to transformation and change. We must focus that the tourism industry is climate resilient, he added.
Billa said, "We should use local material and include the products of local people. When we grant sanctions to projects, we see if it has sustainability in terms of jobs, ensure livelihood and how we engage communities in the growth of the tourism sector. Many a time, the community is left as a bystander. To the contrary, we must ensure that the local community is a stakeholder in the industry. Our community should be taken into account and we should encourage homestays with local communities to strengthen this sector."
The Principal Secretary, of the Ministry of Tourism in Madhya Pradesh, Sheo Shankar Shukla said that the state of Madhya Pradesh offered a plethora of opportunities to tourists from India and abroad. 14 UNSESCO-approved sites were in Madhya Pradesh. The state has a forest cover of up to 25 per cent, 12 national parks and two jyotirlingas- Ujjain and Onmkareshwar. Narmada River has a series of dams. All these sites have culminated in a huge surge in tourism and the footfall is going through roofs.
Shukla said the state government had divided the state into five cultural zones having seven tribes and 45 sub-tribes. "Now the MP government is encouraging rural tourism and Tribal tourism by having convenient homestay facilities. The state government was showcasing the rural life of the state as the best destination and the state had carved out tourism villages in Madhya Pradesh. At least fifty new destinations were being added. The MP government was also encouraging cruise tourism to ensure that the footfall was diversified at several attractive locations," he said.
President of FHRAI K Syama Raju said that this summit has extended an important platform to discuss the best solutions to the problems being faced by this industry. Our country has huge natural resources and such spots may get converted into attractive tourism destinations. Such innovative ideas and natural destinations are catching tourists from across the globe.
The other aspect is that this summit had provided huge opportunity for collaboration between the policymakers and tourism industry stakeholders. Such engagements and conceptual brainstorming will usher tourism industry into future growth and attract tourists from all over the country and abroad, he added.
Hemant Jain, President of PHDCCI, said that our hotels and restaurants had to be sustainable as a large number of guests were visiting India from the UK and the US. Now we should focus upon strengthening tourism sector on sustainable model. We should look forward towards states like Gujarat and Madhya Pradesh to get this sustainable models already working in these states, he said.
Glen Mandziuk, CEO, World Sustainable Hospitality Alliance, UK said that this industry was waiting to work for something which had more future prospects and top companies around the world are curious. There are tremendous pattern on investment in sustainability. We have tremendous value chains of leading technology companies to support the high growth of this industry. All General Managers can be trained on the sustainability development, Mandziuk said.
It is pertinent to note that the concept of sustainability has evolved from being an ethical choice to an essential strategy for long-term success in the hospitality industry. India, with its rich cultural heritage and diverse natural landscapes, is emerging as a key player in sustainable hospitality. The industry is gradually aligning with international sustainability practices while adapting them to local requirements. Hotels across the country are implementing responsible tourism strategies that helps to preserve natural ecosystems, protect cultural heritage, and support economic growth. Government incentives, including tax benefits and subsidies for green initiatives, further encourage the transition toward eco-friendly operations.