Globally, the world is still reeling under the impact of the COVID-19 pandemic, and as we look towards the future, people rethink the need to travel and unwind from their hectic lives, and these developments will boost the global tourism industry.
Post the pandemic, the tourism industry is playing catch-up, and as per the UNWTO estimates, it is believed to have a major recovery towards global tourism in 2023, where the international arrivals reached 1,300 million, which was a 33.3 percent increase from 2022. The reason for this upward development has been because of the economic development, which inevitably helps in the creation of jobs, helping stabilize the post-pandemic economies. The Travel and Tourism Development Index (TTDI) 2024 highlighted the sectors of travel and tourism to continuously grow in the post-pandemic scenario. It has been observed that 71 out of the 119 countries’ scores increased as per the 2024 index, and the reason for this increase in its ranking has been due to the focus on areas of safety and security and aims at greater emphasis on health and hygiene domains. Furthermore, the Travel and Tourism Development Index 2024 mentioned that India ranked at the 39th position in the category of Asia-Pacific economies but has the largest travel and tourism industry in the region of South Asia. Furthermore, it tops the lower-middle-income economy category. For the United States of America, it has ranked first in the 2024 Travel and Tourism Development Index, and the reasons for the first position, as per the Travel and Tourism Development Index 2024, have been due to several factors, such as the highly conducive business environment, highly skilled and qualified labor force, and readiness towards information and communication technology (ICT). Apart from these characteristics, the 2024 Index also observed that the reason for countries like the United States of America and others to have gained the top positions has been due to the brilliant provisions of transport and infrastructure associated with tourism and its services.
India-US Contours of the Tourism Industry
Joseph Nye, the pioneer of soft power, opined that “a country which has a strong global influence is more successful in attracting tourism, and that would increase the economic development, investment, and abundant skilled labor force, which would do proper justice towards the use of soft power.” Tourism is one of the tools of soft power, and in the present global situation, the countries are collaborating and cooperating with one another.
One of the fastest growing domains of exchanges that can be witnessed has been the sector covering the people-to-people connections and exchanges. The relationship between India and the US has been evolving constantly, and both countries have many people-to-people interactions and a tourism industry, which has led this partnership to be stronger and more robust. In fact, the Travel and Tourism Development Index 2024 observed 9.24 million foreign tourist arrivals, and this depicted a 43.5 percent increase as compared to 2022, as it brought in foreign exchange earnings of Rs 2.3 lakh crores from countries like the United States of America, Bangladesh, the United Kingdom, Australia, and Canada, to name a few. This data clearly explained the opportunities in the domain of tourism and related sectors for growth.
Given India’s growth story and becoming globally influential, India can lead another growth story in the domain of tourism in the coming times. According to the Ministry of Tourism’s report titled “India Tourism Data Compendium 2024,” the tourism industry in India has great potential, as there are 43 UNESCO World Heritage Sites. India’s rich culture and heritage experiences not only open up the world to visiting a beautiful cultural experience, but they also open up the opportunity to learn and invest in the handicraft and textile industry in India. Apart from handicrafts and the textile industry, there are several other products that India is abundant in, and so, as of 31st March 2025, there are 658 geographical indicator tag applications registered, which clearly shows the richness and diversity of Indian products. Furthermore, given India’s rich flora and fauna, India offers diverse nations locations like the various national parks open for safaris, which also helps in gaining safari tourism like the Rhino Safari in Kaziranga in Assam and the Tiger Safari in Pench and Bandhavgarh in Madhya Pradesh. There are other locations like Ladakh, Spiti Valley, and Rishikesh known for adventure tourism, and this domain is popular among the younger generation. For a couple of years, the wellness and medical tourism industry has made India the global destination for Ayurveda, yoga, and healthcare facilities, which provided provisions for affordable and reliable services. It was observed that in 2023, 6.9 percent of foreign visitors visited India for medical tourism. Another sector of tourism that is emerging is the Meetings, Incentives, Conferences, and Exhibitions (MICE) industry, which caters to the business sector, and in 2023, it brought in 10.3 percent of foreign visitors to India to Indian infrastructural marvels like Yashobhoomi and Bharat Mandapam.
In the Union Budget 2025-2026, Rs. 2541.06 crore has been allocated for employment-led development, which would cater to different aspects like infrastructure building, skill development, and travel facilities, paving the way to promote the tourism industry of India globally. The budget also includes the need to develop 50 top tourist destinations, which would help offer MUDRA loans for homestays, enhance connectivity, and introduce e-visa facilities. Furthermore, the budget also aims to support areas of sustainable tourism through Swadesh Darshan Scheme 2.0, Heal in India, and Gyan Bharatam Mission, and these schemes will not only incentivize employment opportunities but also create a possible growth model. The famous tagline ‘Incredible India’ has gained a strong fan following and has been gaining immense traction in the last couple of years. According to the India Brand Equity Foundation (IBEF), it has been observed that the Indian sector of tourism and hospitality is expected to exceed Rs. 5,12,356 crore by 2028, and it is suggested that travel and tourism are the largest industries in India, with states like Uttar Pradesh, Uttarakhand, and West Bengal working to develop the tourism circuits and enhance infrastructure for pilgrims.
As per the industry of tourism in the United States of America, it has been observed that according to the 2018 US Travel Association’s report titled “International Visitations to the US from International Inbound Travel Market Profile,” travel is the largest industry export to India, as Indian students spend up to 52 percent of travel exports and 36 percent is by the Indian tourists. The tourism industry in the US caters to students who study there and make their family visit, and this helps in the domain of leisure tourism in cities like Orlando and Las Vegas, as they provide world-class luxury and entertainment experiences.
Another sector that the US works on is the business and Meetings, Incentives, Conferences, and Exhibitions (MICE) industry, which helps attract many business travelers. Globally, the US has always been the most sought-after choice for tourism, as it offers a combination of landscapes, cultural attractions, and luxurious experiences, and many also visit America to live the ‘American dream through a short holiday.’ From the perspective of the US economy, the tourism industry not only helps in supporting people through employment but also helps equip them with the opportunity to have purchasing power. Furthermore, the domain of infrastructure and hospitality services also experiences a boom in growth.
Since both the countries are looking to expand their relationship with one another. The tourism industry seems to be the most viable sector for greater opportunities of cooperation and exchange.
Challenges
One of the key challenges has been the issuing of visas for Indian citizens to go to America. Though the tourist visas are available, the high costs and the wait time for attaining a visa for many Indians make them rethink their need to visit the great American dream through a short holiday, and so they end up choosing places in Southeast Asia like Vietnam, Thailand, and Singapore, where the attainment of a visa is not just convenient but visas are available on arrival. Furthermore, the cost of travelling, hotels, and food is far cheaper, which makes it more lucrative for budget-friendly travellers. A challenge that the US faces with regard to travelling in India is the safety issue, especially for the female solo travellers, which has been a major cause of concern. Another issue that has been a concern
RN for American travellers to India, the cleanliness issue is a big one, and so most of the foreign travellers prefer staying in five-star hotels, which cater to them with their luxurious hospitality and services. This is a problem for budget-friendly travelers, as not everyone can afford a five-star hotel and pay for luxury travel in India, which also economically deters many from coming to India.
Possibilities
It has also been observed that about 92 percent of Americans will be travelling in 2025. With this growth data, there is a major possibility of attracting American international travelers to visit India. If American tourists visit India, they normally visit India for its cultural extravaganza and spirituality retreats, but there is a need to develop other sectors like visits to natural habitats and safaris, which would also attract a lot of tourism in this domain. In fact, India can also learn from the US about its culture of amusement parks and fairs, which would also help boost tourism and employment opportunities. Another aspect is that India and the US venture into student-led tourist groups, and in these groups, students connected to universities can not only interact with one another in their respective academic fields but also show them their understanding of their country, and this way there will be greater interactions among the youth of the two countries and help cement future relations. Business meetings can also be held in cultural hubs, which would give the businesses a chance at working along with travelling and enjoying their leisure time in exploring cultural hubs, and so the governments need to also promote and provide business convention centers in cultural hubs.
All in all, one aspect that India and the US can work on is the people-to-people connections, as they are guiding lights for the future.