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FDI In Tourism & Hospitality Sectors

The Indian tourism and hospitality industry has emerged as one of the critical 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.

In the World Economic Forum's Travel and Tourism Competitive Index (TTCI), India rose from 52nd place in 2015 to 40th place in 2017. India is now rated 34th in the world, up to six positions from last year.

Despite the epidemic, investments in Indian tourism increased by 174.7 percent, from $1.07 billion in FY 2019 to $2.94 billion in FY 2020.

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 drive the 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 hotels, resorts, and recreational facilities.

  • 1.5 %

    Share in World Tourist Arrivals (2022)

  • 1.3 %

    Share in International Tourist Receipts (2022)

  • $7 Bn

    Foreign Exchange Earnings (FEEs) (2022)

  • 1

    8th largest tourism economy in the world

  • 2

    9th largest in cultural resources and business travel in the world

  • 3

    14.62 million jobs created by tourism in last 4 years (between 2014 – 2018)

  • India is the most digitally advanced traveler nation in digital tools used for planning, booking, and experiencing a journey.
  • Contribution to India's GDP of $460 billion by 2028.
  • With profits of $29.962 billion from January to December 2019, the industry has become one of India's major Foreign Exchange Earners, representing a 4.8 percent increase over the previous year.
  • Tourism contributed $194 billion, or 6.8% of India's GDP, in 2019 and supported 39.80 million jobs, or 8% of total employment, according to the World Travel and Tourism Council (WTTC).
  • In 2016, the global medical tourism market was valued at 19.7 billion dollars, with a CAGR of 18.8% expected to reach 46.6 billion dollars by 2021.
  • Incredible India campaign

    Extending international tourism business in India
  • E-Tourist VISA facility

    e-Tourist VISA, e-Business VISA & e-Medical VISA (currently, 163 countries have e-tourist visa facility)
  • Special Tourism Zones (STZ)

    5 STZs in partnership with states to boost tourism in India
  • Medical tourism

    Economical treatment, quality healthcare infra & highly skilled doctors
  • Coastal tourism

    Promote intra-regional trade among Indian Ocean Rim (IOR) countries
  • May 21- The Andhra Pradesh Council of Ministers has authorized several new development projects, including the INR 1,000 crore Vizag Beach Corridor, to make Visakhapatnam the major tourism destination in the state.
  • April 21- Westin Hotels & Resorts, a Marriott International-owned premium wellness hotel group, has announced its first location in Goa on April 26, 2021.
  • February 21- NEC has received six bids totaling INR 132 crore to develop the tourism sector in the North-Eastern Region in 2020-21.
  • January 21- The Maharashtra government signed MoUs worth INR 2,905 crore with various hospitality companies to promote tourism in the state, resulting in more than 6,750 employment.
  • November 20- Ministry of Tourism has inaugurated a tourist facilitation center in Guruvayur, Kerala, under the PRASHAD scheme.
  • October 20- Hilton opens the first DoubleTree hotel in Rajasthan.

  • $15.65 bn FDI inflows in the hospitality industry (in USD) in Hotel & Tourism during April 2000 – March 2021
  • $25.2 bn Foreign direct investment in the tourism sector during 2017-18 (growth of 17% over the same period of the previous year)

Data of Map

Passenger Traffic


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