India Considers Infrastructure Status for Hotels to Boost Tourism Investment, ETTravelWorld

The central government is actively considering extending harmonised infrastructure status to the hotel industry, a policy step expected to attract significant capital investment and strengthen India’s global tourism competitiveness, according to Union Tourism and Culture Minister Gajendra Singh Shekhawat.

Speaking at the 98th Annual General Meeting and Convention of the Federation of Indian Chambers of Commerce and Industry (FICCI), Shekhawat described the proposal as “a long-standing demand that will unlock capital, expand rooms inventory and strengthen our global price competitiveness.”

The minister outlined a broad government vision to transform tourism into a $1 trillion sector by 2047, when India marks 100 years of independence. He emphasised that achieving this milestone would require large-scale private investment and innovation in hospitality models to match the performance of regional tourism leaders.

The consideration of infrastructure status forms part of a wider national effort to position tourism as a structural growth engine. According to FICCI President Harsha Vardhan Agarwal, the sector currently contributes 5.2 per cent directly to India’s GDP and supports 84 million livelihoods. With appropriate policy interventions, it could grow into a $250 billion industry by 2030.

India has already initiated what Shekhawat described as “one of the largest tourism infrastructure programmes in the world,” with over Rs 12,000 crore invested in destination development. The government is developing 50 world-class destinations under a challenge-mode framework, encouraging states to compete on infrastructure quality, visitor experience, and sustainability.

Shekhawat pointed to India’s connectivity expansion, noting that operational airports have risen from fewer than 75 to 127 in the past decade. The network now includes 10 international-standard cruise terminals, 150,000 kilometres of new highways, 38 inland waterways for river cruises, and over 10,000 kilometres of metro lines across 23 tier I and II cities. The redevelopment of key temple corridors such as Kashi, Mahakal, Kedarnath, Puri, and Ayodhya was cited as “one of the most transformative tourism initiatives in modern India.”

He also underlined India’s growing leadership in wellness tourism, medical travel, and concert tourism, and noted the country’s upcoming role as host of the 2030 Commonwealth Games in Gujarat.

Despite these advances, FICCI’s Harsha Vardhan Agarwal noted that India welcomes just 10 million international visitors annually, compared with France’s 90 million and Spain’s 84 million. “This shows not a gap in potential, but a vast opportunity waiting to be unlocked,” he said.

FICCI President-elect Anant Goenka commended government initiatives such as Swadesh Darshan 2.0 and PRASHAD, noting that they reflect a focus on global benchmarks, visitor experience, and sustainable tourism asset creation.