FDI In Tourism & Hospitality Sectors

The rich culture, historical heritage, variety in ecology, terrains and places of natural beauty spread across the country has led India to be a popular tourist destination. Tourism acts as a significant source of foreign exchange for the country. FDI in tourism, hospitality, and health industries in India is encouraged. The country has successfully moved 12 places up from 52nd to the 40th position in the Travel and Tourism Competitive Index of World Economic Forum (released on 5th April 2017).

By 2030, India is expected to be ranked among the top five business travel market and an increased inflow in FDI in the tourism industries can be expected.


Industry Scenario

India ranks first in world in terms of direct contribution to employment (2016) by travel and tourism. Around 40.3 mn jobs were supported by travel and tourism in 2016 which accounted for 9.3% of the country's total jobs.

In 2016, foreign tourist arrival (FTAs) in India stood at 8.8 mn while domestic tourist visits to States/UTs stood at 1.6 bn. A growth of 8.4% was witnessed in FTAs in January 2018 over January 2017. 58.5% growth in FTAs was recorded for e-Tourist Visa in January 2018 over January 2017. By 2027, international tourist arrivals in India is expected to reach 15 mn, according to the World Economic Forum.


  • 1
    Seventh largest tourism economy in the world
  • 2
    Ninth largest in cultural resources and business travel in the world
  • 3
    58.5% growth in Foreign Tourist Arrivals on e-Tourist Visa in January, 2018 over January, 2017



1. May 2017 Ctrip.com, China's largest travel portal, has bought a stake in India's largest travel portal MakeMyTrip for USD 180 mn via convertible bonds, which allows Ctrip to increase its share in MakeMyTrip up to 26.6%

2. September 2016 - The Central Sanctioning and Monitoring Committee (CSMC) for the Swadesh Darshan Scheme in Ministry of Tourism has approved projects to the tune of USD. 68.89 mn for development of Heritage circuit in Madhya Pradesh and Uttarakhand, Ramayana Circuit in Uttar Pradesh, North East Circuit in Sikkim and Coastal Circuit of Tamil Nadu.

3. January 2016 - Goldman Sachs has invested USD 66 mn for a significant minority stake in Indian hotel investment and development firm Samhi Hotels. Samhi, which operates 10 hotels and is developing 16 more, will use the money to grow its portfolio to about 30 to 35 properties.

4. February 2015 - Thai firm Onyx Hospitality, which runs the Amari brand of hotels, has set up a joint venture with hotel asset management firm Kingsbridge India to set up 7 hotels in the country by 2018 for which the JV will raise USD 100 mn.

FDI Facts

334 mn FDI equity inflows (in USD) during April 2017 - June 2017

10.9 bn FDI inflows (in USD) in hotel & tourism during April 2000 - December 2017

13.2 bn FEE (in USD) from tourism (January - June 2017)