India's tourism sector set to grow by 20% CAGR, says Union Minister Gajendra Singh Shekhawat

India’s tourism industry is poised for significant expansion, with annual growth expected to exceed 20%, Union Minister Gajendra Singh Shekhawat said on November 28. Speaking to reporters during FICCI’s 98th Annual General Meeting in New Delhi.

He attributed the positive outlook to the country’s strengthening economy, rising disposable incomes, expanding middle class, and major improvements in infrastructure, while speaking at a panel discussion at FICCI AGM 2025 hosted by CNBC-TV18's Shereen Bhan. "I am sure that tourism in India is going to grow by more than 20% CAGR annually,”  he said and added that measures such as exempting income tax up to ₹12 lakh supported travel demand. "With growing economy, the Indian middle class has increased, which leveraged the tourism sector. Exempting income tax up to

₹

12 lakh for individuals supported tourism,” he explained.

The Minister celebrated Ahmedabad securing the 2030 Commonwealth Games, saying the event would enhance the state's global tourism appeal and generate long-lasting momentum.

“I believe with this big event, India's tourism potential will rise further till 2030, and also beyond. That is going to create a multiplier effect. In tourism, there is nothing called individual initiativethe government's actions ultimately 'benefit the people at large, boost the economy, and raise disposable income, which together act as a booster dose for our tourism sector,” the Tourism Minister said.

“Infrastructure status has been announced for 50 destinations… So practically, infrastructure status has been given across the country,” he said. Addressing the industry earlier, he called for ambitious private investment to steer the next phase of growth, he stressed.

“India needs bold private investment to reimagine hospitality models, develop innovative experiential tourism products, establish globally benchmarked service excellence, and build strong community linkages. The government has created an enabling environment; now it is the industry's moment to lead, shape, and elevate India's tourism brand globally,” the Minister added.