India is rapidly emerging as one of the most influential forces in global tourism, thanks to its expanding middle class, digitally connected youth, and increasing appetite for experiential spending. According to a recent report by the Boston Consulting Group (BCG), global leisure travel spending is poised to triple from Rs. 4,28,20,000 crore (US$ 5 trillion) in 2024 to Rs. 12,84,60,000 crore (US$ 15 trillion) by 2040, positioning it as one of the world’s most lucrative economic sectors—outpacing both the pharmaceutical and fashion industries.

Among the nations driving this seismic growth, India stands tall alongside China and Saudi Arabia, forming the next frontiers of outbound and domestic tourism. With rising incomes, shifting consumer values, and better mobility infrastructure, Indians are travelling farther, more frequently, and spending significantly more—transforming the country into a powerhouse of global travel demand.

India’s Middle Class: The New Global Traveller

India’s middle class, estimated to grow to over 800 million people by 2030, is the core demographic fueling this travel revolution. Rising from a consumption pattern once centered around material goods, this group is now prioritising experiences—weekend getaways, spiritual pilgrimages, beach vacations, and even international adventures.

The travel aspirations of Indian families are evolving rapidly. BCG’s projections suggest:

• Domestic overnight travel will grow at 3% annually,

• Regional travel (within Asia and nearby countries) will grow at 4%, and

• International overnights will see 6% annual growth.

Corresponding expenditure is forecast to increase at even more impressive rates—12% for domestic, 8% for regional, and 10% for international travel—highlighting a sharp rise in per-trip spending among Indian tourists.

Millennials and Gen-Z Lead the Charge

Indian Millennials and Gen-Z consumers, who form the majority of the country’s population, are now at the forefront of this boom. Digitally native, globally aware, and emotionally invested in purposeful travel, these young Indians prefer:

• Weekend escapes over retail therapy,

• Cultural immersion over luxury materialism,

• And wellness retreats over traditional vacations.

Gen-Z is particularly drawn to Instagram-worthy destinations, spiritual circuits, culinary experiences, and remote working getaways, often combining business with leisure—mirroring a broader global trend in emerging markets where 70% of leisure travel also includes business elements.

Changing Preferences: From Relaxation to Purpose-Driven Travel

While conventional motivations such as relaxation, exploration, and family time remain core to travel decisions, a noticeable trend is the shift toward purpose-driven travel. According to BCG, today's tourists—especially those from Asia and emerging economies—are looking for meaning and lifestyle alignment.

This includes:

• Wellness retreats focused on yoga, meditation, and healing therapies,

• Spiritual tourism to places like Rishikesh, Varanasi, Bodh Gaya, or even Ayodhya,

• Food-focused itineraries covering India’s diverse culinary belts—from Lucknowi kebabs to Kerala’s Sadya, and

• Eco-conscious or sustainable tourism experiences that align with personal and social values.

This evolving mindset has led to a redefinition of tourism experiences, increasingly focused on self-discovery, cultural depth, and lifestyle exploration.

The Resilience of Wanderlust Amid Global Risks

Despite geopolitical uncertainties, immigration hurdles, and macroeconomic volatility, BCG’s report underscores the resilience of the global travel market. Wanderlust, it says, has emerged as a powerful, emotional force, especially among populations seeking recovery from the COVID-19 era’s social isolation and economic dislocation.

Indians, especially, are embracing this resurgence with renewed enthusiasm:

• Airlines have expanded routes to Europe, Southeast Asia, and the Middle East,

• Travel-tech platforms have seen 30–40% spikes in bookings, and

• Tier-2 and Tier-3 cities are showing double-digit growth in outbound travel.

Travel influencers, digital apps, and visa relaxation policies are also driving this surge, democratizing travel access beyond just the urban elite.

Strategic Implications for India’s Tourism Industry

To capture this opportunity, India’s travel ecosystem—government and private—needs to act fast and smart. Key interventions may include:

1. Expanding infrastructure: Developing better road, rail, and airport connectivity in tourism hubs.

2. Digital facilitation: Promoting online travel clearances, e-visas, and real-time destination content.

3. Domestic campaign amplification: Leveraging campaigns like ‘Dekho Apna Desh’ or ‘Incredible India 2.0’ to nudge people toward local explorations.

4. International positioning: Positioning India not just as a destination, but also as a leading source of high-value global tourists.

5. Visa agreements: Signing reciprocal or simplified visa agreements with regions like ASEAN, the EU, and the Gulf, to make cross-border travel easier.

Conclusion: A Trillion-Dollar Travel Aspirant

The Rs. 12,84,60,000 crore (US$ 15 trillion) global travel economy is no longer a distant dream but a real, actionable opportunity—and India’s rising middle class is central to it. As travel becomes an aspirational currency, shaping identity, wellbeing, and social connections, India is poised not just to explore the world—but to shape how the world travels.

With strong policy support, digital innovation, and an empowered, youthful population, India is set to be both a global tourist hub and a global traveller hub by 2040.

Indeed, the next 15 years could very well belong to the Indian traveller.

The Upcoming IPOs in this week and coming weeks are CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India, Meta Infotech.

The Current active IPO are Happy Square Outsourcing Services, Cryogenic OGS, Crizac.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.