Here's What's Behind a Strong Outlook for Indian Tour Operators - India Report

The revenue of Indian tour and travel operators is expected to increase by 15-17% during the 2025 fiscal year, according to projections by credit ratings agency CRISIL. The growth is driven by rising domestic tourism and increasing propensity to travel overseas, the agency said. 

“Improving infrastructure, rising disposable incomes, a behavioral shift in travel patterns, and the government’s increasing focus on boosting domestic tourism will further support the sector’s revenue growth,” it said. 

Factors Affecting the Tourism Growth: According to CRISIL, the domestic tourism market in India is being driven by quick getaways and weekend staycations, growing spiritual tourism, and improved last-mile connectivity. Gradual increase in inbound travel towards pre-pandemic levels and demand for corporate travel is also leading this market. 

On the other hand, higher disposable income along with visa-free facilities, simplified visa processes, more affordable travel packages and focus of Indian airlines on routes to new destinations in Southeast and Central Asia is spurring overseas travel from India.