The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country.
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.
100% FDI in tourism industries is allowed under automatic route.
100% FDI in tourism and hospitality sectors is allowed including tourism construction projects like the development of hotels, resorts, and recreational facilities.
7th largest tourism economy in the world
9th largest in cultural resources and business travel in the world
14.62 million jobs created by tourism in last 4 years (between 2014 – 2018)
India is the most digitally-advanced traveller nation in terms of digital tools being used for planning, booking and experiencing a journey
During 2018, foreign tourist arrivals (FTAs) in India stood at 10.56 million, achieving a growth rate of 5.20% year-on-year. FTAs in January 2019 stood at 1.10 million, up 5.30% compared to 1.05 million year-on-year
The travel & tourism sector in India accounted for 8% of the total employment opportunities generated in the country in 2017, providing employment to around 41.6 million people during the same year
International hotel chains are increasing their presence in the country, as it will account for around 47% share in the Tourism & Hospitality sector of India by 2020 & 50% by 2022
Will changes in FDI norms lead to more employment??
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