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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.

The hospitality and tourism companies have now contributed to a GDP growth of US$ 44.2 billion. By the end of 2025, the contribution of travel and tourism company is likely to grow the GDP account to up to 7.2%, with US$ 88.6 billion monetary value.

The launch of several branding and marketing initiatives by the Government of India such as ‘Incredible India!’ and ‘Atithi Devo Bhava’ have provided a focused impetus to growth. The Indian government has also released a fresh category of visa - the medical visa or M visa, to encourage medical tourism in the country.

As per Ministry of Tourism, foreign tourist arrivals (FTAs) in India increased 19.5 per cent year-on-year to 630,000 in May 2017. FTAs on e-tourist visa increased 55.3 per cent year-on-year to 68,000 in May 2017.

The Government has also been making serious efforts to boost investments in tourism sector. In the hotel and tourism sector, 100 per cent FDI is allowed through the automatic route.

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