The country’s growing economy has led to a rise in corporate MICE spending, including international events. As Indian companies expand globally, outbound MICE travel is increasing to accommodate overseas meetings, networking opportunities, and collaborations.

India’s outbound market is set to reach USD 18,817.72 million in 2024 and grow at a CAGR of 11.4% over the following decade, reaching approximately USD 55,388.41 million by 2034, fuelling global business ventures, according to a recent FICCI-Nangia knowledge paper.

With 27 million outbound travellers in 2024, India’s demand for international travel is stronger than ever. Projections are even more optimistic. Rahul Pandit, Managing Director Valor Estate estimates, “India’s airlift will grow 200% in 5 years, adding 1,400 aircraft to the existing 771. This portends sustainable travel and RevPARs for hotels. 34% of India is in its cities, which will be 50% by 2047. Per capita, $2,600 will reach $18,000 by then. These macros of uprooted urbanisation and increased income will boost travel. Elections in 40 countries this year will unlock business expansion CapEx. This will spur inbound travel, and yield strong MICE demand FY27 onwards.”

India is the second fastest-growing outbound travel market globally

India is the second fastest-growing outbound travel market globally, following China, driven by its rapidly expanding younger and educated population, rising middle class, and increasing disposable income. A key factor behind this growth is India’s youthful demographic, with the 15-54 age group currently comprising 47% of the population. This segment is expected to grow, making up 60% of the population by 2025 and 56% by 2050, fueling outbound travel in the years to come as per The International Trade Administration.

According to a report from Booking.com, produced in collaboration with knowledge partners McKinsey & Company, travel spending by Indians is projected to rise from $150 billion in 2019 to $410 billion by 2030. Although outbound trips make up only 1% of the total trips, they account for 25% of the overall expenditure—a figure that is expected to grow to 35% within the next decade. Additionally, the total number of trips is forecasted to double, increasing from 2.3 billion in 2019 to an estimated 5 billion by 2030, as per Indian tourism statistics.

Reiterating the outbound boom is an FMI report that states that India’s outbound tourism market is expected to reach USD 18,817.72 million by 2024 and grow at a CAGR of 11.4% from 2024 to 2034. This growth is largely fueled by the growing interest of Indians, particularly millennials, in travelling to international destinations. By 2034, the market value is projected to rise to USD 55,388.41 million.

Spending on outbound tourism is expected to grow from USD 18.82 billion in 2024 to USD 55.39 billion in 2034, the ‘Navigating Horizons’ report jointly prepared by Nangia NXT and FICCI said. Indian travelers are willing to spend up to $7,000 on international trips, making a significant economic impact on the destinations they visit.

There have also been measurable benefits to allied industries such as aviation and hospitality. Outward foreign exchange remittances have surged to an average of $1.42 billion per month in 2023-24, a significant rise from $400 million in 2018-19. Overseas tourist spending is projected to reach $55 billion by 2034 as per this report.

Understanding Indian Travellers: Key trends in India’s outbound tourism market

According to FMI, key trends in India’s outbound tourism market include a rising interest in culinary experiences, such as food tours, cooking classes, and global gastronomic adventures. Technology is playing an increasingly important role in trip planning, booking, and offering personalized experiences, with virtual reality tours and AI-driven recommendations growing in popularity.

Solo travel is becoming more accepted, particularly among millennials and Gen Z travellers. Adventure tourism is also gaining traction, with activities like trekking, camping, wildlife safaris, and water sports attracting more interest. Additionally, wellness tourism is on the rise, as health-conscious travellers seek yoga retreats, meditation centres, and spa resorts for relaxation and rejuvenation.

The U.S. Travel Association’s 2019 report highlights that Indian visitors to the United States primarily engage in activities such as shopping, sightseeing, visiting national parks, exploring art galleries and museums, enjoying fine dining, and exploring small towns and historical sites. Key motivators for Indians to travel to the U.S. include adventure, visiting friends and family, shopping, experiencing diverse food and cuisine, and connecting with nature.

A range of destinations benefit from Indian outbound Travel

According to a McKinsey report, the most popular outbound destinations for Indian travellers include the UAE, Thailand, Singapore, Indonesia, Maldives, Hong Kong, the US, Nepal, the UK, Canada, and Vietnam.

The U.S. Department of Commerce’s National Travel & Tourism Office (NTTO), shares in its report that the number of Indians visiting the United States rose by 190% from 2021 to 2022. In 2022, 1,256,915 Indian travellers visited the U.S., making India the 6th largest source of international arrivals. The value of U.S. tourism exports to India reached $13.3 billion that year.

As travel between India and the U.S. continues to grow, industry experts predict that by 2024, the number of Indian visitors will surpass pre-pandemic levels, reaching around 1,556,000 travellers. This steady increase in visitations reflects the strong demand for travel to the U.S. from India, positioning India as a key player in the U.S. tourism market.

New Zealand, another long-haul destination, has reported a record high of 70,100 visitor arrivals from India in the year ending August 2023, according to data released by Stats NZ. India now ranks as the fifth-largest source of overseas visitors to New Zealand, following Australia, the United States, the United Kingdom, and China.

India is the largest source market for destinations like Dubai and Singapore. According to the Dubai Department of Economy and Tourism (DET), India was Dubai’s top source market, with 1.9 million visitors in the first 10 months of 2023. Meanwhile, Saudi Arabia is targeting 7.5 million visitors by 2030. Highlighting the vast potential of India’s outbound travel market, Indians took 26.9 million overseas trips in 2019, before the pandemic. This number is expected to rise to 50 million departures by 2030.

Danielle Curtis, Exhibition Director ME at Arabian Travel Market, noted, “India’s outbound travel surge is largely driven by its expanding middle class. In 2020, only 37 million households had an annual income between $10,000 and $35,000, but with India’s rapid economic growth, that figure is projected to soar to 177 million households by 2030. Additionally, households earning over $35,000 annually will increase from two million in 2020 to 13 million by 2030—an impressive sixfold growth!”

In 2023, Singapore saw a footfall of 1.07 million visitors from India, which is 76 per cent of the pre-Covid era. During January-March, 2024 over 2,45,380 Indians have already visited Singapore, which is an 81.8 per cent recovery from the pre-Covid period.

As an example according to a report by the German National Tourism Board: In 2023, Indian travellers undertook 15.25 million outbound trips, with 2.8 million heading to Europe, including 311,000 to Germany which ranked as the 3rd most popular European destination.

Japan has emerged as a popular destination for Indian travellers, with a 53% rise in visitors since 2019. Vietnam has also captured the attention of Indian tourists, as new direct flights have more than tripled passenger traffic to the Southeast Asian nation.

Hong Kong welcomed 21 million visitors, including 181,000 from India, reflecting a 155% year-on-year increase (January to June 2024). The MICE segment accounted for 700,000 of these visitors, making it the fastest-recovering category.

India’s MICE travel saw a 117% increase in H1 2024 compared to H1 2018. Among Indian travellers, 20% visited for business, while 31% travelled for leisure. The majority of Indian tourists were aged 26-35 (24%) and 36-45 (29%). Delhi contributed the most visitors at 38%, while 15% of tourists came from tier 2 cities.

Strong MICE demand and a significant rise in corporate spending

With a significant rise in corporate spending on international events and the country’s growing economy, India’s outbound tourism market is expected to reach USD 13.4 billion by 2031.

According to a report by HITEX, India’s outbound Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism market is projected to reach a substantial value of US$ 13.4 billion by 2031. This growth is attributed to India’s expanding economy, which has driven corporate spending on international MICE events, as highlighted in the 2023 study.

According to the Global Business Travel Association (GBTA), business travel spending in India is expected to reach $38 billion this year, with a full recovery to pre-2019 levels anticipated by 2025. The rise in outbound MICE travel is largely fueled by Indian companies’ increasing global footprint, requiring more overseas meetings, networking opportunities, and collaborations. Additionally, increased consumer spending, visa reforms, social media visibility and commercial marketing efforts have also played a role in facilitating outbound MICE tourism from India.

MICE tourism has become a major revenue generator for the travel and tourism industry today. The UNWTO acknowledges the strong potential of the MICE sector and has played a key role in identifying and promoting top MICE destinations globally.

India is set to become the fastest-growing outbound MICE tourism market globally, projected to surpass $45 billion by 2025 as per the International Trade Administration. Collaboration between the travel and MICE sectors has been a critical factor in the market’s expansion, underscoring the vibrant growth potential of India’s outbound MICE tourism industry.

MICE groups are regarded as high spenders, as their travel and on-ground arrangements are typically funded by employers. These groups usually stay in premium hotels, with group sizes ranging from 30 to 700 participants. Their itineraries often span 6-7 days, covering 2-3 destinations, and include outdoor activities, soft adventure experiences, gala evenings, and shopping excursions as estimated by the International Trade Administration.

Key sectors like IT, pharmaceuticals, finance, and manufacturing are fueling growth through international trade exhibitions and conferences. Improved air connections, visa liberalization, and technological advancements like virtual meetings are making overseas MICE destinations more accessible, further boosting the industry.

Top MICE Destinations for India’s Outbound Travellers: Long-Haul No Barrier

Indian MICE travellers are exploring a wider range of destinations, broadening the industry’s scope. India’s MICE with the United States is an excellent example of long-haul MICE, demonstrating to other long-haul destinations that Indians do not mind long hours of travel when considering business or leisure activities.

Indian businesses are leading global optimism, with 72% expecting to increase spending on travel and entertainment, according to the Trendex: B2B edition survey commissioned by American Express and the Centre for Economics and Business Research (Cebr). This surge in corporate-led travel presents a significant opportunity for countries aiming to attract larger groups from India, not only for business travel but also for destination weddings.

The United States remains a highly sought-after destination for MICE travellers from India, with the potential for significant spending growth. MICE groups are considered high spenders as travel and on-ground arrangements are most often paid for by employers. Such groups mostly use high-end hotels with an average group size consisting of 30-700 pax. Typically, itineraries consist of 2-3 destinations spread across 6-7 days, with outdoor activities, soft adventure activities, gala evenings, and shopping trips. The most popular destinations in the U.S. for MICE tourism are Los Angeles, San Francisco, Las Vegas, New York, Washington DC, Niagara Falls, Miami, and Orlando.

In the long-haul destination category, Australia is a major recipient of Indian MICE travellers, with significant tourism receipts attributed to this segment. The Australian government estimates that business visitors contribute approximately AUD 7 billion annually to its economy, with a substantial portion coming from MICE activities. Sydney remains a key destination for incentive groups, especially from across Asia. While the insurance, financial, and health and beauty sectors have traditionally led the MICE market, there has been substantial growth in MICE activity from India, particularly from clients in the manufacturing and automotive industries.

Another long-haul destination seeing good MICE arrivals and corresponding receipts, South Africa has seen a marked increase in Indian corporate travellers, with around 46% of Indian visitors motivated by business travel. This sector is expected to contribute significantly to South Africa’s tourism revenue, which was projected at over USD 8 billion in 2023. South African Tourism aimed for a 35% increase in MICE travellers from India in 2023. The expectation is that this growth will continue, potentially exceeding 100,000 Indian visitors by 2024, given the rising interest in South Africa as a destination for corporate MICE.

Tourism New Zealand, a long haul destination has observed substantial growth in MICE travel from India, with multiple incentive groups already confirmed. According to the organization, attracting high-quality visitors is a priority, and this is defined by several factors: the diversity of activities they participate in, their travel across various seasons and regions, their engagement with local culture and communities, and their environmental consciousness. Indian MICE travellers fit these criteria well, as they tend to engage in numerous activities during their visits, reflecting their strong interest in experiencing all that New Zealand has to offer.

As a long-haul destination, Korea is seeing a recovery in tourism from India, with the Korea Tourism Organisation (KTO) India reporting a post-COVID recovery rate nearing 70%. By December 2023, they aim to reach 90% of pre-COVID levels, with a target of over 130,000 arrivals from India this year. Notably, MICE travel from India accounts for nearly 70% of the total inbound numbers, underscoring the significance of corporate and incentive travel in driving tourism growth.

Dubai remains a favoured destination for Indian MICE tourists due to its luxury infrastructure and services tailored for business events. The UAE’s tourism sector anticipates that MICE tourism will contribute around USD 4 billion annually, with India being one of the top source markets.

Dubai Business Events highlighted Dubai’s commitment to the Indian MICE market with the launch of its latest program. In 2023, India ranked as the top source of visitors to Dubai, underscoring the city’s appeal for business events. Additionally, Dubai has introduced a five-year multiple-entry visa for Indian travellers.

“As a key market for Dubai, India will continue to play a vital role in helping us achieve the goals of the D33 Agenda, further strengthening Dubai’s position as a hub for business, investment, and tourism,” said Bader Ali Habib, Regional Head of Proximity Markets at Dubai’s Department of Economy and Tourism.

Indonesia serves as a prime example of developing MICE arrivals with Indian tourists ranking sixth among international arrivals in Indonesia and second in Bali. Indian arrivals are largely driven by weddings, honeymoons, and MICE groups, prompting the Indonesian MoTCE to focus on these key segments. The ministry has responded to the rising MICE demand by enhancing promotions and collaborations to further develop this sector.

Indonesia has experienced a remarkable 28% growth in Indian tourist arrivals from January to July this year, welcoming 4.18 lakh visitors out of a target of 6.71 lakh. Based on current trends, the Indonesian government is confident of exceeding this target and is gearing up to host one million Indian tourists by December 2024. The government is focusing on attracting Gen Z travellers, wedding groups, educational tours from schools and colleges, as well as business professionals.

This surge underscores Indonesia’s growing appeal, particularly destinations like Bali, among Indian travellers. The increase is largely due to improved connectivity, with direct flights now operating from Delhi, Mumbai, Bangalore, and other major cities to popular Indonesian hotspots.

In recent years, Thailand has also seen a surge in Indian MICE arrivals, contributing significantly to its tourism revenue.

An emerging destination for corporate MICE travel, particularly for incentive groups, thanks to its strategic location and diverse offerings is Malaysia. According to Tourism Malaysia, the duration of stays for incentive groups has increased from three to four nights to four to five nights, highlighting the growing interest in the country. Additionally, FIT travellers are now extending their stays to seven to eight nights. MICE travel plays a crucial role in Malaysia’s tourism growth, with the country poised to attract more corporate events and incentive programs in the coming years.

Singapore has established itself as a leading MICE destination, with India being one of its top five markets for both leisure and corporate travel. The country was the first to launch its MICE programs in India, recognizing the rise in incentive travel from the region. Singapore‘s appeal as a MICE hub stems from its structured business environment, strict regulations, and status as a global financial centre, making it an ideal location for business meetings, conferences, and product launches. While Indian cuisine remains a key consideration for MICE groups, from India, there is a growing interest in exploring local cuisines during these trips.

The recent easing of visa regulations in countries like Thailand, Vietnam, Malaysia, and Kenya is anticipated to increase interest among Indian MICE travellers.

Key criteria for Indian MICE Planners when choosing destinations

In a fine analysis of the Indian MICE and corporate travel mindset, a recent Switzerland Convention and Incentive Bureau (SCIB Market Situation – India, March 2024) report suggests that while MICE is the biggest segment of the Indian outbound travel market, and has also been amongst the fastest to grow in 2022, it is important to understand what factors influence MICE decision making.

The report highlights that when shortlisting destinations for MICE travel, corporates or their MICE agencies consider several key criteria. These include essential factors such as adequate infrastructure for MICE activities, suitable event venues and high-quality hotels in the vicinity, as well as the range of activities available for the group post-business meetings.

Other equally important factors include budget considerations, flight connectivity, travel time, and ease of accessibility, particularly in terms of visa requirements. Corporates do prefer destinations that either do not require visas for Indians or offer e-visas or visas on arrival.

Currently, 50 countries offer visa-on-arrival and e-visa options to Indian citizens, while 27 nations, including Kenya, Tanzania, Myanmar, Thailand, Saint Lucia, Vietnam, Sri Lanka, Cambodia, and Tajikistan, permit visa-free entry. Over 30% of Indian travelers are choosing Middle Eastern destinations, with Dubai being a key market. This trend aligns with the fact that 70% of Indian travelers prefer destinations within a four-hour flight and with a notable Indian diaspora. South Asian destinations also remain popular.

According to a McKinsey report, Indian travellers consider flight fare, food, local experiences, and distance when choosing a destination.

The SCIB Market Situation reports that most destinations from around the world are keen to get a slice of this exciting market. Many countries are wooing the Indian market constantly. From Azerbaijan and Kazakhstan in the Eurasian region to Bahrain and Qatar in the Gulf, the list of the countries is immense. Most of the new players are pitching their novelty, ease of travel as well as cost competitiveness as their USPs to attract Indian travellers. Several destinations also flaunt their experience in handling large-scale events and their modern event spaces as well as large, luxurious hotels able to handle any kind of demand volume and cater to a global audience.

Beyond traditional tourist destinations, Indian travellers are now on a quest for novelty, craving authentic and immersive experiences, as highlighted in Booking.com’s report released in collaboration with knowledge partners McKinsey & Company. Indian travellers are largely influenced by social media platforms, TV shows and Indian cinema. That explains why travel brands engage in celebrity endorsements and partnerships. Mega events like sporting tournaments (ICC Men’s Cricket World Cup 2023), diplomatic meetings (G20 Summit 2023), music concerts (Lollapalooza) and many more also influence travel decisions. YouTube is the go-to platform among social media platforms for travel inspiration, followed by Instagram.

A key insight into India’s outbound MICE preferences can be drawn from Thomas Cook’s MICE Team, which was recognized for its exceptional performance in managing mid to large corporate MICE groups, ranging from 100 to over 2000 delegates, across diverse destinations. Popular locations for Indian MICE travellers included Iceland, Switzerland, France, Italy, Dubai, Denmark, Australia, Spain, Portugal, Abu Dhabi, Malaysia, Japan, Türkiye, Thailand, Africa, and Kenya. This reflects India’s growing demand for a wide array of international MICE destinations.

The Corporate MICE travel purchasers’ mindset

Corporate MICE travel purchasers play a pivotal role in orchestrating large-scale corporate events, often managing substantial budgets with high expectations for quality and efficiency. Drawing on insights from OptiMICE Events, a leading organizer of the MTM and LLTM Travel Exhibitions, now in its 26th edition, this report shares the mindset of these expert travel managers.

By understanding their mindset and addressing these pain points, suppliers and service providers can better cater to the needs of corporate MICE travel purchasers, ensuring long-term partnerships and successful events.

Key Characteristics of Corporate MICE Travel Purchasers

Corporate MICE travel purchasers are seasoned professionals, often referred to as expert travel managers due to their extensive experience in curating events for their organizations. Their expertise extends beyond basic travel logistics to encompass:

• Emerging Destination Awareness: They possess a keen awareness of new and trending destination hotspots, carefully selecting locations that offer value, appeal, and convenience for corporate events.
• Expert Negotiation Skills: With significant budgets to manage, these purchasers are skilled in negotiating competitive rates and squeezing margins, ensuring they receive the maximum return on investment for every dollar spent.
• High Expectations for Quality and Efficiency: Corporate purchasers demand fast responses and expect optimal service delivery, from accommodations to event planning, transportation, and catering.

Information Sharing and Market Intelligence

A distinguishing feature of corporate MICE travel purchasers is their extensive network of peers and their willingness to share insights. According to OptiMICE Events, these professionals routinely exchange notes on service providers, rates, and vendor recommendations, including:

• Vendor Performance: Corporate purchasers share their experiences with service providers, including positive recommendations and warnings about underperforming vendors.
• Logistics and Destination Challenges: Information about destination-specific issues such as visa difficulties, vegetarian food availability, and safety concerns are widely shared, enhancing the collective knowledge of the group.
• Market Intelligence: This collaborative approach ensures that corporate purchasers maintain a high level of market intelligence regarding current trends, prevailing rates for flights, hotels, and event planners, as well as safety and health considerations.

Adaptability and Decision-Making

Corporate MICE travel purchasers are known for their openness to new ideas and innovative solutions. They are quick to embrace suggestions that can enhance the quality and success of their events. This adaptability, coupled with their fast decision-making capabilities, makes them efficient managers who are always updated on the latest industry trends and developments.

The Reverse Marketplace organized by OptiMICE Events showcases this decisiveness, where suppliers are often surprised by the speed and clarity with which corporate purchasers assess options and make decisions. This quick turnaround is a key aspect of their operational mindset.

Challenges Faced by Corporate MICE Travel Purchasers

Despite their expertise, corporate MICE travel purchasers face several challenges that can complicate event planning and execution. The most common concerns include:

• Flight Duration and Visa Delays: Long flying hours to destinations and visa processing delays are significant pain points that can disrupt event timelines and cause logistical headaches.
• Currency Fluctuations: Exchange rates that fluctuate unpredictably can lead to overspending, affecting the overall budget of a MICE event.
• Budget Overruns: Staying within budget is a critical concern, and purchasers are meticulous in tracking expenses to avoid overshooting the allocated funds.
• Event Execution: Poor execution of MICE events, whether due to vendor shortcomings or mismanagement, is a major frustration. This impacts not only the success of the event but also the reputation of the corporate purchaser within their organization.

Corporate MICE travel purchasers are highly skilled, knowledgeable, and well-connected professionals who play an essential role in the success of large-scale corporate events. Their ability to negotiate, share intelligence, and make quick decisions is complemented by their openness to innovation and adaptability in managing complex logistics. However, they continue to face challenges related to travel logistics, budgeting, and vendor reliability.

India’s Corporate Travel Market: Understanding Market Dynamics

Deloitte’s latest report titled ‘Exploring India’s Corporate Travel Market: Understanding Market Dynamics, TMCs, and User Preferences’. The report underlines how India’s corporate travel sector, is valued at over US$10.6 billion and how this market is rapidly evolving, with businesses leveraging new technologies to streamline travel management and improve cost efficiency and the growing role of AI-powered, personalized, and sustainable travel solutions.

Key Highlights from the Report:

• India’s corporate travel market to double to USD 20.8 billion by FY2030.
• AI-powered chatbots and real-time data analytics are enhancing traveller experiences.
• Nearly 50% of business travellers now prioritize eco-friendly travel practices.
• SMEs account for 30% of the corporate travel market in India.
• 37% of business travellers extend trips for leisure, reflecting a rise in “B-leisure” trends.
• Top industries driving travel spending include IT, BFSI, pharma, and engineering.

Industries like IT services, banking and financial services (BFSI), engineering, aviation, oil and gas, pharmaceuticals, diversified sectors, metals, fast-moving consumer goods (FMCG), and automotive have emerged as the leading contributors to travel spending. Together, these sectors account for 86% of the total travel expenditure among the top 100 companies. Notably, industries that allocate more than 1% of their net income to corporate travel include IT services, pharmaceuticals, aviation, and engineering.

The Indian travel industry is projected to maintain its momentum, growing at approximately 9% CAGR to reach around US$97 billion (in constant currency) by FY2030. Within this, the corporate travel segment is anticipated to contribute between US$18 billion and US$23 billion (in constant currency), with the base case estimate being approximately US$20.8 billion, reflecting a CAGR growth of around 10.1%.

The coming decades present a tremendous opportunity for growth in India. If leveraged effectively, the travel sector could contribute approximately US$3 trillion to India’s GDP by 2047. Additionally, the emerging startup ecosystem must harness new technologies like Generative AI, AI/ML, and IoT 4.0 to meet the diverse needs of travelers, suppliers, travel managers, and travel management companies (TMCs). This approach will enhance the corporate travel segment’s ability to drive growth in the broader travel and tourism sector.

What’s Powering the Growth of India’s Outbound MICE Tourism?

According to DPI Research report, key factors influencing India’s Outbound MICE tourism growth:

• Economic Growth: India’s booming economy has led to higher disposable incomes, resulting in increased corporate budgets for international MICE events.
• Globalization of Businesses: As Indian companies grow internationally, the demand for global meetings and networking has surged, driving outbound MICE activity.
• Infrastructure Development: Major investments in convention centres, hotels, and transport infrastructure are making India more attractive for hosting international events.
• Government Support: Policies like the National Strategy for the MICE Industry, easier visa processes, and financial incentives are encouraging outbound MICE travel.
• Rising Education and Skill Development: An increasing interest in global exposure through conferences is fueling MICE tourism, particularly among students and professionals.
• Diverse Business Sectors: Key industries such as IT, pharmaceuticals, and finance frequently participate in global trade shows, adding to MICE growth.
• Corporate Incentive Programs: Companies are using outbound MICE travel as a reward system for employees, increasing participation in international events.
• Increasing Connectivity: Better air travel options and more affordable flights have made international MICE destinations easier to reach.
• Growing Awareness: Businesses are increasingly aware of the value of international MICE events for networking and sharing industry knowledge.
• Technology Advancements: Virtual and hybrid event formats have allowed continued participation in MICE activities, even during disruptions like the COVID-19 pandemic.

India is set to remain the fastest-growing economy among the G20 nations

Over the last decade, India has overcome challenges like demonetization, the pandemic, and global inflation. By focusing on technology, improving manufacturing, and increasing exports, India became a top destination for global investments. Despite tough conditions, the economy stayed strong, attracting $46.03 billion in foreign investment in 2023, while its startup ecosystem grew from 471 in 2016 to over 92,000 in 2023.

India ranks 5th in the world GDP rankings for 2024, showcasing a diverse and rapidly growing economy. Key sectors such as information technology, services, agriculture, and manufacturing drive this expansion. The country leverages its large domestic market, a youthful, tech-savvy workforce, and a growing middle class.

Global rating agency Moody’s has revised India’s GDP growth forecast for 2024 to 6.8%, up from its previous estimate of 6.1%. This adjustment reflects India’s strong economic performance in 2023 and the easing of global economic pressures. Moody’s also highlighted in its Global Macroeconomic Outlook for 2024 that India is set to remain the fastest-growing economy among the G20 nations.

Industry segments investing in MICE. The following industries contribute to global MICE events:

• Government and Development agencies such UN, WHO etc.
• Environment & other SDG Goals
• Food security (iv) Healthcare & Medical
• Information Technology (AI, Big Data, Cloud, IoT)
• Engineering & Modern Manufacturing (4.0. etc.)
• Urban Mobility & Transportation
• Cyber security & Homeland Security
• Defence
• Textiles & Fabrics
• Energy, Power & Electricity
• Chemicals, Plastics & Rubber
• Engineering & Electronics
• Travel & Tourism

India’s economic landscape is transforming rapidly, with key sectors like IT, healthcare, and renewable energy set to grow significantly in 2024. The IT sector alone contributed 7.4% to the GDP in 2022, while fintech, pharmaceuticals, and the automotive industry are also seeing remarkable growth. The pharmaceutical industry, worth $50 billion, is a key global player, exporting to over 200 nations.

India’s automotive sector is the world’s second-largest for two-wheelers and is progressing towards becoming a leader in electric vehicles by 2030. The insurance industry is projected to grow at 7.1% annually, outpacing global averages, while the aviation sector is the third-largest domestic market worldwide, with a rising number of airports and increased sustainability efforts. Additionally, India’s cement industry is the second-largest globally, attracting foreign investments and positioned to become a major exporter in the coming years.

Major Indian industries and sectors which contribute to Outbound MICE travel

India’s Aviation Sector:

India’s aviation sector is rapidly growing, driven by high demand and supportive government policies. Now the third-largest domestic aviation market globally, after the USA and China, India has expanded its operational airports from 74 in 2014 to 148 by April 2023, with plans for 190-200 by 2040.

The Indian government’s policies have significantly boosted this sector, with domestic passenger traffic increasing by 19.4% and international traffic by 26.2% during April-October 2023. Sustainability is a key focus, as shown by Delhi and Mumbai airports receiving Level 4+ Carbon Accreditation for their efforts in reducing carbon footprints and promoting eco-friendly aviation practices.

India’s  Pharma Industry:

India holds a significant position in the global pharmaceutical sector, ranking among the top 12 biotechnology destinations worldwide and 3rd in the Asia-Pacific. In 2022, India’s biotechnology industry reached US$ 80.12 billion, a 14% growth from 2021. Indian pharmaceutical exports serve over 200 countries, supplying 50% of global vaccine demand, 40% of US generic drug demand, and 25% of UK medicines.

With over 3,000 drug companies and 10,500 manufacturing units, the industry is projected to reach US$ 65 billion by 2024 and US$ 130 billion by 2030. Leading Indian companies include Sun Pharma, Cipla, and Dr. Reddy’s Laboratories.

India’s  FinTech Industry:

India’s fintech sector is growing rapidly due to the rise of digital payments and smartphone usage. Fintech combines finance and technology to offer innovative financial services, helping businesses work faster and smarter. With around 87% of Indians using fintech products, the adoption rate is 23% higher than the global average, according to the Economic Survey 2022-23.

The industry is expected to reach $141 billion by 2025. Key players in India’s fintech space include Paytm, PhonePe, Razorpay, Mobikwik, PolicyBazaar, and Google Pay, contributing to the sector’s impressive growth.

India’s  Automotive Industry:

India’s automotive industry is a key pillar of the economy, ranking second globally in two-wheeler production, seventh in commercial vehicles, sixth in passenger vehicles, and first in tractors. In FY23, India exported over 4.7 million vehicles and employs around 19 million people. By 2030, India aims to become the largest electric vehicle (EV) market, with 30% of new vehicle sales being electric.

 Key companies include Maruti Suzuki, with 41.6% of the passenger vehicle market, Tata Motors, present in 175 countries, and Hero MotoCorp, the world’s largest two-wheeler manufacturer, active in South Asia, Africa, and Latin America.

India’s Cement Industry:

India is the second-largest cement producer globally, contributing over 8% of the world’s installed capacity. The sector’s growth is driven by abundant raw materials like limestone and coal, as well as rising demand from rural housing and smart city developments. Foreign investments from companies like Lafarge-Holcim and Heidelberg Cement have boosted the industry.

FDI inflows reached $5.50 billion from 2000 to 2023. India is expected to become a leading exporter of clinker and grey cement to the Middle East and Africa. Major Indian companies include UltraTech Cement, ACC, Ambuja, Ramco, Dalmia, Shree, JSW, and JK Cement.

The Indian MICE tourism market is on a strong growth trajectory, driven by a mix of economic factors, government initiatives, infrastructure improvements, and a growing recognition among businesses and individuals of the value of participating in international events. With India’s expanding global business footprint, this upward trend in outbound MICE tourism is expected to continue.

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