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This article deals with the much talked about 100% FDI which the Govt sanctioned in their last Union Budget for tourism sector. First let’s take a look what FDI is all about.

Foreign Direct Investment (abbreviated as FDI) means, direct investment into production or business in a country by an individual or company of another country. Here we talk about FDI in tourism sector in India.

Over the past decade Tourism sector has increased significantly in India, all thanks to the flagship program by Ministry of Tourism’s “Incredible India” campaign. In the year 2005 itself, tourism saw a 16% increase contributing to 5.3% of Indian GDP. Indian Tourism industry is estimated to be around US $32 billion industry here. With this amount increasing to manifolds year by year it’s wise to understand the types of tourism in India.

Some key tourism sectors in which India can get its economy right is listed below.

Medical Toursim:


India has evolved as a destination for medical aids. With Indian hospitals offering medical services at a competitive low rates than the West attracts a lot of people seeking help for their ailment from all across the places, especially Indian subcontinent.

Spiritual Tourism:

sunset yoga

India is known for the varied cultures and diversity. People from all across the globe come here in large number to seek spiritual peace. With India having a number of pilgrimage places and shrines Spiritual tourism plays money churner in Indian Economics.

Rural Tourism:


The only way people of rural areas can be benefitted is by rural tourism. India has a huge potential of handicraft industry across all states. With Rajasthan alone totaling INR 4 million Handicraft exports in 2009, it clearly indicates what good this rural tourism can make to Indian Economics.

Adventure Tourism:


India is blessed with some of the most thrilling and adventurous places on Earth. Paradise for Mountaineers is Himalayas in the North. Coral reefs of Andaman are treating down the south. Goa is a major place to have sea adventures. The opportunities are immense here.



According to World Health Organization there is an increase of 5% yearly, it represents 6% of the GDP and 11.4% of all consumer spending.

There are certain things which have made India a hotspot among foreign investors. The attitude of Indian Govt throwing open its arms for a 100% FDI is going to be a game changer here. In the year 2010 Govt had sanctioned INR 1,000 crore to Depart of Tourism. The days are not far when we would see chains of hospitality majors like Hilton, Accor, Marriot putting a large amount in India.

With this potential World Tourism Organization correctly stated that “India will be a leader in tourism industry of South Asia with 8.9 million arrivals by 2020”.