Investment In Hospitality Industry

The Tourism and Hospitality industry is one of the largest service industries in India. Tourism is an integral pillar of the Make in India programme. Tourism plays a role of significant economic multiplier and becomes critical since India has to grow at rapid rates and create jobs.

India offers geographical diversity, world heritage sites and niche tourism products like cruises, adventure, medical, eco-tourism, etc. Incredible India has spurred growth in Tourists Arrivals and Employment.

India has moved 13 positions ahead from 65th to 52nd rank in Tourism and Travel Competitive Index (WEF); UNWTO Tourism Barometer (2016) currently ranks India at #40 in terms of global tourist footfalls.

Tourism tends to encourage the development of multiple-use infrastructure including hotels, resorts & restaurants, transport infrastructure (aviation, roads, shipping & railways) and healthcare facilities. Five tourism mega economic zones were announced in the previous budget to attract global tourism players to India and also drive tourism sector's contribution to GDP.

  • By 2028, Tourism & Hospitality is forecasted to earn $ 50.9 bn as visitor exports compared to $ 27.3 bn earned in 2017
  • By 2028, direct contribution to employment is expected to grow to 5.3% of the total employment from the current contribution of 4.9% in 2017
  • By 2030, India is expected to be among the top five business travel market
  • 100% FDI allowed under automatic route
  • 100% FDI allowed in tourism construction projects, including the development of hotels, resorts, and recreational facilities
  • For further details, please refer FDI Policy
  • 1.20 % Share in World Tourist Arrivals
  • 1.90 % Share in World Tourism Receipts
  • 13.40 % Growth in Foreign Tourist Arrival
  • 10.20 % Foreign Exchange Earnings growth rate