India’s Foreign Tourist Arrivals (FTA) have not yet recovered to pre-pandemic 2019 levels during the last financial year. While the importance of inbound tourism as a precious foreign exchange earner and a powerful soft diplomacy tool cannot be overemphasised, India continues to perform below its potential as a globally competitive tourism destination. The Indian Association of Tour Operators (IATO) has observed this concerning trend and has written to the Prime Minister, urging immediate action.
In a letter addressed to the Prime Minister, IATO has urged an immediate budgetary allocation of Rs 1,000 crore under the Incredible India Campaign and the establishment of an “India Tourism Board” under the Prime Minister’s leadership. According to IATO, these measures are essential as the peak inbound tourism season approaches and could help India boost foreign tourist arrivals in the current financial year.
Ravi Gosain, President of IATO, emphasised the significance of inbound tourism in the country’s economy. “When global trade is facing unprecedented disruptions due to tariff wars and geopolitical shifts, tourism exports remain unaffected by such constraints. Unlike goods, India’s tourism export, foreign tourists’ spending in India, is non-tariff-based and brings direct foreign exchange earnings into the country. This positions inbound tourism as a stable, sustainable, and immediate contributor to India’s current account, providing valuable foreign exchange, employment generation, and balancing of the forex trade deficit. Yet, regretfully, the country is lagging in its efforts to attract foreign tourists,” said Gosain.
Gosain highlighted the broader impacts of tourism, noting that every foreign visitor becomes an ambassador for Indian culture, heritage, and values, creating a substantial multiplier effect in employment generation and revenue. He added that the sector has the potential to contribute 1–2 per cent to the GDP if prioritised and strengthened.
“To enhance FTA numbers, in addition to budgetary support and the formation of the India Tourism Board, we need simplified visa facilitation, an expanded scope of e-Visas, fast-tracked group tourist visas, and the exploration of visa fee waivers for select countries. Further, incentivising international airlines and air charters to improve connectivity to key tourism circuits, particularly in tier-2 and tier-3 destinations, will be critical to unlocking the true potential of India’s inbound tourism,” Gosain said.
