The Cost of Queer Exclusion in Indian Economy

Too often, conversations around LGBTQIA+ rights are framed as social debates, legal questions, or matters of culture. They are all of those things. But they are also questions related to the economy, workforce and tourism. Ultimately, they are questions about whether India is prepared to unlock its full potential or continue paying the price of exclusion. 

India's LGBTQIA+ community is estimated to comprise between 135-140 million people – nearly 10% of the population. Together, they represent an estimated purchasing power of more than $168 billion. Yet millions continue to face barriers to education, employment, entrepreneurship, healthcare, housing, and public life. Think about that for a moment. 

We speak endlessly about demographic dividends, economic growth, and becoming a global powerhouse. Yet, we continue to place obstacles in front of millions of people simply because of who they are. 

Imagine telling 140 million Indians: You can contribute, but first you must explain yourself. Validate yourself. Prove yourself. 

That is not inclusion. That is inefficiency. 

The World Bank estimates that exclusion based on sexual orientation and gender identity costs India between USD 1.9 billion and USD 30.8 billion every year in lost economic output—up to 1.7% of GDP. Behind those figures are talented students who leave classrooms because bullying became unbearable, professionals who walk away from workplaces where they do not feel safe, entrepreneurs denied opportunities because they do not fit expectations, and employees who spend more energy hiding who they are than contributing what they know. 

The cost of homophobia and transphobia is not borne by LGBTQIA+ people alone. It is borne by every business struggling to retain talent, every industry searching for innovation, and every economy wondering why it is not growing faster. 

No one does their best work while defending their right to exist. 

For employers, the consequences are immediate. When people feel compelled to conceal their identity, productivity declines, engagement suffers, innovation slows, and attrition rises. Businesses lose talent not because individuals lack capability, but because the system fails to create belonging. 

In hospitality and tourism, the impact is impossible to ignore. Research shows that 91% of Indian LGBTQIA+ travellers consider safety over convenience and price when choosing destinations. 

What happens when inclusion is not treated like charity

However, we have seen what happens when people are welcomed instead of tolerated, empowered instead of scrutinised, and invested in instead of ignored. At The LaLiT, transgender and queer professionals today work across hospitality operations, front office, housekeeping, culinary, finance, human resources, and leadership functions; not as symbols of inclusion, but as valued contributors driving business outcomes. Their success is proof that talent flourishes when given an opportunity. 

Through the Keshav Suri Foundation, we have supported LGBTQIA+ individuals through scholarships, skilling programmes, livelihood initiatives, entrepreneurship support, legal awareness, and healthcare access. Time and again, we have seen individuals who were once excluded from education, employment, and mainstream opportunities go on to become professionals, business owners, community leaders, and changemakers. 

We have spent over a decade doing something many institutions were hesitant to do – providing queer artists, performers, musicians, drag artists, and creators a stage, an audience, and most importantly, economic opportunity. 

Long before inclusion became fashionable, our venture at Kitty Su proved that queer talent was not only culturally valuable but commercially viable. Today, many artists who first found visibility on our stage have built successful careers, brands, and communities of their own. 

The same philosophy inspired our other intiatives, like Kitty Su Beauty, which has created opportunities for queer creators, makeup artists, influencers, and entrepreneurs to participate in an industry that has historically profited from diversity without always including it. 

The lesson across all of this is remarkably consistent: when barriers fall, talent rises. When people are given access, they create value. When they are respected, they contribute. And when they belong, they thrive. 

That is why inclusion should never be viewed as charity, compliance, or corporate goodwill. It is an investment with measurable returns – in talent, innovation, productivity, creativity, tourism, entrepreneurship and economic growth.

Who commands tomorrow's purchasing power?

Gen Z and Gen Alpha are growing up in a world where identity is not hidden but celebrated; they are, by the largest measure, the most accepting and LGBTQIA+-allied generations in history, and they vote with their wallets. For businesses, this is not a question of values alone; it is a question of survival. A generation that commands tomorrow's purchasing power, and that considers inclusion a baseline, will simply not patronise brands that exclude. The Pink Economy is most definitely the mainstream market of the future. For any business that intends to remain relevant, embracing this is not a progressive choice, it is an economic imperative. 

This is why policies that make identity harder to recognise deserve careful scrutiny. The question is not only whether they affect rights. The question is whether they deepen exclusion at a time when India should be removing barriers to participation, productivity, innovation, and growth. 

Because exclusion is expensive. And no nation aspiring to global leadership can afford to leave this much talent and economic value on the sidelines. 

Keshav Suri is as the Executive Director at The Lalit Suri Hospitality Group.

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