Fuelled by growing economy, robust infrastructure and corporate tax reforms, India’s MICE outbound tourism is on a remarkable growth trajectory.
Janice Alyosius
India’s outbound tourism and MICE sector is witnessing an unprecedented boom, fuelled by rapid economic growth and evolving travel trends. Naveen Kundu, Managing Director, Ebix Travel, shed light on India’s rising prominence in global tourism and its significant impact on the MICE industry.
Economic power driving tourism
Kundu emphasised that India’s transformation into a global economic powerhouse is a key driver of tourism growth. “India is currently the 5th largest economy in the world, and we are set to become the third largest between 2027 and 2030. While the official GDP growth rate is stated as 6.5 per cent, in reality, India is growing at 7 to 8 per cent annually, supported by a robust parallel economy,” he explained.
India’s foreign exchange reserves have grown from less than US$30 billion in 1998 to a staggering US$638.2 billion today, with remittances, IT exports and manufacturing playing crucial roles, Kundu said, noting, “Every third company in the world is led by an Indian CEO and India is the largest exporter of pharmaceuticals and IT services. This economic strength translates into increased travel and higher MICE spending.”
Rapid infra development
Kundu also highlighted India’s fast-paced infrastructure development, which is bolstering MICE opportunities. “We are constructing 38 kilometres of roads and laying 1.9 kilometres of railway tracks every day. The government has also announced 50 new airports under the UDAN scheme. All of this makes travel more accessible and convenient,” he ascertained.
Besides, he praised India’s digital revolution, particularly the Unified Payments Interface (UPI), which has transformed financial transactions. “With this system, Indian travellers can seamlessly make payments worldwide, eliminating the need for foreign exchange and boosting travel,” he said.
Promising future
Looking ahead, Kundu projected that India’s upper middle class will reach 50 million by 2030, with a significant chunk travelling globally. He averred, “MICE is the fastest-growing segment in India. Companies are investing more in rewards and recognition programmes, influencing MICE spending. The corporate tax reduction from 35 to 25 per cent has allowed businesses to allocate more funds for incentives.”
Kundu further added, “Currently, the potential for outbound MICE travel from India is growing exponentially. Travel agents and service providers must be prepared to meet the increasing demand from Indian corporate and leisure travellers.”
Sectors driving India’s outbound
Banking
Banking industry’s net income was US$331 billion in
FY 2023 and is expected to reach US$338 billion by 2024.
Insurance
India’s insurance market is projected to reach US$222 billion
by 2026, making it the world’s 6th largest.
Real Estate
Contributing 70% to GDP, this sector is booming, with India’s cement capacity set to hit 850 million tonnes by 2030.
Pharma
Currently valued at US$50 billion, India’s pharma industry
is projected to reach US$130 billion by 2030.
FMCG
As India’s 4th largest employer, this sector is growing at
4.5% CAGR and is projected to grow at 6.5% by 2030.
Consumer Durable
With a US$13.6 billion market size, this sector is growing
at 5.5% CAGR, expected to reach 10% CAGR by 2030.
IT
Generating US$253 million in revenues, the IT sector is growing at 3.8% and is expected to reach US$275 million by 2026.
“Companies are investing more in rewards and recognition programmes, influencing MICE spending.” – Naveen Kundu, Managing Director, Ebix Travel
