The Government has taken several steps to attract private investment in the Tourism sector. The steps taken include the following major initiatives:
In order to attract foreign investment in the tourism sector, 100% Foreign Direct Investment (FDI) is allowed under the automatic route in the Tourism and Hospitality industry in India, subject to applicable regulations and laws. 100% FDI is allowed in tourism construction projects, including the development of hotels, resorts and recreational facilities.
Further, based on the inputs received from the industry and stakeholders, the Government has taken steps to give fillip to private investment through declaration of status of tourism infrastructure for (i) three-star or higher category classified hotels located outside cities with population of more than 1 million, (ii) ropeways and cable cars which are included in the Harmonized Master List. In addition, Exhibition-cum-Convention Centre Projects with minimum built-up floor area of 100,000 square meters of exclusively exhibition space or convention space or both combined have also been included in the Harmonized Master List.
The setup of portals of National Single Window System (NSWS) and Foreign Investment Facilitation (FIF) by the Department for Promotion of Industry & Internal Trade (DPIIT) under the Ministry of Commerce and Industry the Government is ensuring the Ease-of-doing-business.
This information was given by Union Minister for Tourism and Culture Shri Gajendra Singh Shekhawat in a written reply in Lok Sabha today.
