India's tourism sector has immense potential, but its development remains fragmented due to the absence of a streamlined national strategy. While the Union budget’s proposal to develop 50 tourist destinations is a step in the right direction, Anand Ramanathan, partner & consumer industry leader at Deloitte India, argues that a more effective approach would have been to identify and develop entire tourism circuits rather than isolated destinations. Most travelers, especially those from outside the region, plan multi-day itineraries that cover multiple attractions, making it essential to develop tourism in a holistic manner rather than focusing on individual sites. By creating well-defined circuits, India could offer more cohesive travel experiences, ensuring that tourists not only visit a single landmark but explore entire regions, thus generating greater economic benefits for local communities.
The budget does acknowledge the importance of collaboration with states, recognizing that infrastructure, safety, cleanliness, and law enforcement are all managed at the local level. However, the execution of tourism plans still relies heavily on state governments, and without a dedicated central initiative to drive integrated development, progress could remain uneven across different regions. Many states face challenges such as lack of adequate funding, inefficient coordination between various departments, and slow project execution, which often lead to delays in tourism infrastructure development. For a truly robust tourism ecosystem, both the central and state governments must work in tandem, with clear responsibilities and well-defined timelines to implement reforms effectively.
Ramanathan suggests that a Tourism Challenge Fund, similar to the Urban Challenge Fund of ₹1 lakh crore, could have been introduced to encourage municipal corporations to improve infrastructure and train tourism professionals for better destination management. Such a fund could provide incentives for local authorities to enhance visitor experiences, making tourist destinations more accessible and enjoyable. By allocating specific grants for tourism-related projects, the government could encourage cities and towns to develop better transport facilities, upgrade public amenities, and preserve historical and cultural heritage sites. Additionally, funding could be directed towards training programs for hospitality professionals, guides, and local businesses to ensure that tourists receive high-quality services, thereby improving India’s global reputation as a tourist-friendly country.
Another significant gap in India’s tourism ecosystem is the lack of local tourism agencies that can provide on-ground support. Many countries have dedicated airport helpdesks and centralized tourism-enabling organizations that assist visitors in navigating their destinations. India, however, lacks such integrated services, leading to fragmented efforts across multiple agencies. Tourists, especially international visitors, often struggle with obtaining reliable information, booking inter-city transport, or understanding local customs, which can deter them from returning or recommending India as a preferred travel destination. By establishing centralized tourist information centers at major airports, railway stations, and bus terminals, the government could provide seamless support to travelers and enhance their overall experience.
Additionally, leveraging digital platforms to promote tourism could significantly boost visitor numbers. Countries like Singapore and Japan have invested heavily in technology-driven tourism solutions, such as interactive apps, virtual guides, and AI-powered assistants that provide real-time information to travelers. India could adopt similar innovations, integrating them with state and national tourism portals to offer personalized itineraries, ticket bookings, and live updates on local attractions. By embracing technology, India can cater to the evolving needs of modern travelers who rely heavily on digital platforms for planning their trips.
For India to fully capitalize on its diverse tourism potential, a more structured and integrated approach is required. By developing tourism circuits instead of standalone sites, providing financial incentives for local tourism development, and establishing centralized tourism-support agencies, the country can create a more cohesive and attractive tourism ecosystem. Additionally, by investing in digital infrastructure and improving coordination between the public and private sectors, India can transform its tourism sector into a significant driver of economic growth. With a rich cultural heritage, diverse landscapes, and a growing global interest in experiential travel, India has the opportunity to position itself as a world-class tourist destination—provided it takes a more strategic and forward-thinking approach.
