India&rsquo;s growing middle class and its younger, travel-loving population are set to play a major role in shaping the future of global leisure travel, a new report said on Wednesday.&nbsp;
As more Indians explore new destinations, the country is emerging as a key contributor to what is projected to be a $15 trillion global leisure travel industry by 2040, according to data compiled by the Boston Consulting Group (BCG).
The report highlights that annual global consumer spending on leisure travel is expected to triple from $5 trillion in 2024 to $15 trillion by 2040, making it a larger industry than pharmaceuticals and fashion.
This dramatic growth will be driven by rising incomes in developing economies and a growing preference for experiences over material goods.
India&rsquo;s domestic leisure travel has already shown a strong recovery after the pandemic, with spending between 2019 and 2024 registering moderate to strong growth.
BCG projects this momentum to continue, with domestic travel spending rising by 12% annually, regional spending by 8 % and international spending by 10%.
Overnight trips are also expected to grow steadily &mdash; 3% domestically, 4% regionally, and 6% internationally.
Millennials and Gen Z are at the forefront of this travel surge, with their enthusiasm for travel outpacing older generations by up to 26 percentage points.
In India, even Gen X remains a powerful travel segment, unlike in many developed countries where their influence is waning.
Globally, leisure travel overnights are expected to grow 4% annually through 2029 and then slow to 3% per year until 2040.
Domestic travel will continue to dominate, growing from a value of $4.1 trillion in 2024 to $11.7 trillion by 2040, as per the report.
Regional travel is forecast to increase from $710 billion to over $2 trillion, while international leisure travel will more than triple to $1.4 trillion, according to the report.
&mdash;IANS
(Except for the headline, this article has&nbsp;not been edited by the Benefit News&nbsp;editorial team and is published directly&nbsp;from the IANS news feed.)

Indian families travel more as income rises

Rising middle class income set to fuel major travel and tourism boom across India

India’s Middle Class To Boost Travel Boom

Rising middle class income set to fuel major travel and tourism boom across India

July 2, 2025 | 17:53 IST