India’s Tourism & Hospitality Sector Headed for $60 Billion Boost by 2028

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India’s tourism and hospitality sector is on track to more than double its value, aiming for a $60 billion revenue milestone by 2028, fueled by surging domestic and international travel demand.

This forecast reflects growing confidence in the country’s infrastructure enhancements, rising discretionary incomes, and a rebounding global travel ecosystem. According to IBEF estimates, the sector’s contribution to GDP could rise significantly, supported by a strong recovery in foreign exchange earnings and guest volumes.

Key indicators signal robust growth momentum: premium hotel occupancy rates are projected to remain above 70% through FY25–26, with hotel revenues expected to grow by 7–9% in FY25 and 6–8% in FY26.

Further evidence of optimism comes from infrastructure data: India recorded the highest number of new hotel projects in the Asia-Pacific region during Q1 2025, with over 88,800 rooms under development, a 27% increase year-over-year.

These insights illustrate how increased investment and consumer demand are converging—delivering a powerful tailwind for India’s travel economy. As new hotels open, infrastructure expands, and consumer interest climbs, the hospitality sector’s trajectory toward the $60 billion benchmark appears both credible and well-supported by national momentum.