Snapshot

Incredible India

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 the 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

  • 1.2 %

    Share in World Tourist Arrivals

  • 1.9 %

    Share in World Tourism Receipts

  • 13.4 %

    Growth in Foreign Tourist Arrival

  • 10.2 %

    Foreign Exchange Earnings growth rate

A

Seventh largest tourism economy in the world

B

Ninth largest in cultural resources and business travel in the world

C

14.62 mn jobs created by tourism in last four years (between 2014-2018)

Industry Scenario

$460 bn contribution to India's GDP by 2028  

Travel and Tourism being the largest service industry in India was worth $234 bn in 2018. The industry has become the third-largest Foreign Exchange Earner in India with a 17.9% growth in Foreign Exchange Earnings (in rupee terms) in March 2018 over March 2017.

According to The World Travel and Tourism Council (WTTC), tourism generated $240 bn or 9.2% of India’s GDP in 2018 and supported 42.67 mn jobs which is 8.1% of its total employment.

The sector is predicted to grow at an annual rate of 6.9% to $460 bn by 2028 which is 9.9% of GDP.

FTAs in April 2019 were 7,71,353 viz-a-viz 7,45,051 in April 2018 registering a growth of 3.5%. Further to this, FTAs during the period January-April 2019 were 39,35,293 viz-a-viz 38,60,871 in January- April 2018 registering a growth of 1.9%. 

During April 2019 total of 2,01,137 tourist arrived on e-Tourist Visa as compared to 1,57,094 during the month of April 2018 registering a growth of 28.0%. Further to this, during January- April 2019, a total of 11,08,665 tourist arrived on e-Tourist Visa as compared to 9,18,792 during January-April 2018, registering a growth of 20.7%.

Growth Drivers

  • 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
  • Open

    Constitution of National Medical & W…

    To tap the potential and advantages that India has in the fi…

  • Open

    Guidelines for Approval of Online Travel…

    The aims and objectives of the scheme for Approval of Online…

  • Open

    National Heritage City Development and A…

    The Scheme aims to preserve and revitalise soul of the herit…

  • Open

    National Tourism Policy

    Objective of the policy is positioning tourism as a major en…

  • Open

    PRASAD-Pilgrimage Rejuvenation And Spiri…

    Mission is to identify and develop pilgrimage tourist destin…

  • Open

    Sikkim Tourism Policy 2018

    To create sustainable tourism in Sikkim

  • Open

    Swadesh Darshan scheme

    Mission is to develop theme based tourist circuits on the pr…

Investible Projects

Investment Opportunities in Tourism & Hospitality

  • Projects

    312

  • Opportunity

    $4.62 bn

  • Promoters

    107

  • District

    129

  • Private Projects

    11

  • Govt. Projects

    301

open

$564.52 mn

Entertainment Park Project [Gorai]

State (s) Maharashtra
open

$492.05 mn

Ski Resorts & Ski Lift Project [Shimla]

State (s) Himachal Pradesh
open

$366.94 mn

Dadasaheb Phalke Film City Project [Mumbai]

State (s) Maharashtra
open

$201.11 mn

Cauvery Statue Project [Mandya]

State (s) Karnataka

Major Investors

Data on Map

  • Hotel Industry in India
  • Indian Hotel Industry
  • Hospitality Industry in India
 
 

Latest in Tourism & Hospitality

FAQ

Frequently
Asked Questions

  • How much FDI is allowed under tourism & hospitality?

    i) 100% FDI is allowed under the automatic route in tourism and hospitality

    ii) 100% FDI allowed in tourism construction projects, including the development of hotels, resorts and recreational facilities.

    For more information, click here.

  • What are the initiatives taken by the Indian government in the cruise tourism sector?

    The following initiatives have been undertaken by GOI:
    1. The government is in process to develop 5 ports as cruise tourism hubs. These are Mumbai, Goa, Mangalore, Chennai and Kochi. These terminals will have facilities such as hospitality, retail, shopping and restaurants.
    2. 200 minor ports to be develop jetties for such cruise vessels.
    3. The cruise tourism policy shall be introduced by government shortly.

  • What rates will be applicable for accommodation in various hotels/ guest houses/ inns in India?

    The GST rates applicable for accommodation in hotels, inns, guest
    houses, clubs, campsites or other commercial places meant for residential or
    lodging purposes will depend upon the tariff per unit per day declared by the
    respective accommodation establishment. The slabs of GST rates applicable
    are given below:
    1. Less than INR 1000-  Nil
    2. INR 1000 and above but less than INR 2500- 12 %
    3. INR 2500 and above but less than INR 7500- 18 %
    4. More than INR 7500- 28 %

  • What are the initiatives taken by the Indian government in the medical tourism sector?

    The following initiatives have been undertaken by GOI:
    1. A new category of visa "Medical Visa" has been introduced by Ministry of Home Affairs, Government of India, which can be given for specific purpose to foreign tourists coming to India for medical treatment
    2. The Ministry of Tourism has included the promotion of Medical Tourism as new initiatives. The Marketing Development Assistance Scheme (MDA), administered by the Ministry of Tourism, Government of India, provides financial support to approved tourism service providers.
    3. To boost medical tourism, the government today announced setting up of the National Medical and Wellness Tourism Board to provide help to those visiting the country for health care need. The Board, besides Ministry officials, will include other stakeholders such as hospitals, hoteliers, medical experts and tour operators.

  • What rates will be applicable for travel by air?

    The GST rates applicable on air tariffs are as below:
    1. Travel by economy class - 5 %
    2. Travel by other than economy class - 12 %

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