The recent decision by the US to impose higher tariffs on select Indian exports, from steel pipes to chemical products, is a reminder of the vulnerabilities that accompany overdependence on any single set of global trade relationships. India has long pursued economic diversification, and this moment underscores the value of widening our growth base. Among the sectors that can deliver transformative results is tourism, not just as a showcase of our heritage and soft power, but as an economic engine capable of generating growth, employment, and foreign exchange.Tourism is among the most labour-intensive industries in the world, generating livelihoods across transport, hospitality, food services, handicrafts, wellness and entertainment. Few sectors can create employment on such a scale, spanning highly skilled professionals in urban centres to semi-skilled youth in rural communities.AdvertisementAt present, tourism contributes around 5 per cent to India’s GDP, compared to the global average of 10 per cent. Countries like Spain and the UAE, where tourism accounts for about 12 per cent of GDP, illustrate the potential when the sector is treated as a national growth priority.In 2024, tourism generated $28 billion or Rs 2,45,000 crore in foreign exchange earnings for India. This is only a fraction of our potential. Improving the inbound share of tourism GDP will not only strengthen our external account but also provide a steady buffer against fluctuations in merchandise trade. At the same time, outbound travel is growing rapidly. In 2024, over 28 million Indians travelled abroad, spending an estimated $28-31 billion. Indian travellers are among the highest spenders globally, with a growing appetite for luxury, leisure, and immersive experiences. This presents both a challenge and an opportunity: Unless we offer comparable or superior experiences within India, much of this spending will continue to flow outward.If we can raise tourism’s GDP contribution from 5 per cent to 10 per cent over the next decade, the results would be transformative — an additional $516 billion to the economy each year, 40 million new jobs, and foreign exchange earnings rising to $130-140 billion. Achieving this will require addressing capacity constraints. India currently has about 1,80,000 branded hotel rooms and 1.5 million unbranded rooms. Industry estimates indicate that we need to triple our capacity in both categories to meet demand, remain price-competitive, and position ourselves to host major global events and conventions.AdvertisementUnlike goods exports, it is shaped primarily by perception, infrastructure, and facilitation — all of which can be directly enhanced. There are some strategic pathways for this growth.The Union Budget’s announcement on developing 50 destinations in partnership with states is an important step. A world-class destination in each state, blending infrastructure, sustainability, and brand, can shift India’s positioning from a “place to see” to a “place to experience.”Two, simplifying e-visas, reducing immigration queues and delivering a seamless arrival experience are vital. With India’s airlines set to expand their fleet by 1,000 aircraft, improved connectivity can give a decisive boost to tourism. Three, the future lies in content-led promotion, influencer engagement and strategic digital storytelling. Millions of creators already showcase India to the world; the task now is to amplify this through AI-enabled curation and partnerships with global platforms.Four, it is important to unlock private investment. Expanding the tourism sector’s inclusion in the Harmonised Master List of Infrastructure can catalyse investments, including PPP projects like hotels, ropeways, wayside amenities, and convention centres.Five, the Dekho Apna Desh campaign can evolve into a national movement. Domestic tourism, accounting for 86 per cent of sector revenues, fosters cultural exchange, economic redistribution, and national integration. Making interstate travel more affordable and convenient will amplify these benefits.Tourism has one of the highest economic multipliers of any sector. Every rupee spent flows through transport, crafts, food services and community enterprises. When developed sustainably, tourism is also a green growth driver, creating livelihoods without large-scale environmental costs.Moreover, the rise of wellness tourism, spiritual journeys, medical value travel, and immersive cultural experiences aligns perfectly with India’s civilisational strengths. We do not need to reinvent ourselves; we simply need to present the India that already exists more effectively, more consistently and with world-class standards.most readIn today’s world, resilience lies not only in securing foreign markets but in building domestic capacity that can withstand shocks. Tourism offers exactly this: Inward-looking in development, outward-facing in benefits. It generates demand that cannot be taxed at foreign borders, creates jobs that cannot be offshored, and builds national pride alongside prosperity.If adversity is the spur, let us seize this moment to frame a tourism strategy that is bold, ambitious, and executed with purpose. Tariffs may be beyond our control, but the warmth of our welcome is entirely in our hands.The writer is additional secretary & director general, Ministry of Tourism. Views are personal