Government’s Tourism Push Gains Momentum as Centre Considers Infrastructure Status for Hotel Industry

The Indian government has intensified its focus on transforming tourism into one of the country’s most powerful economic engines, with the Union Tourism and Culture Minister Gajendra Singh Shekhawat confirming that the Centre is actively considering granting harmonised infrastructure status to the hotel industry. Speaking at the 98th AGM and annual convention of FICCI, the minister described this move as a long-standing demand that could unlock significant capital inflows and give India a stronger competitive edge in the global tourism market.

Industry leaders have repeatedly highlighted that infrastructure status can ease access to long-term financing, reduce borrowing costs and encourage large-scale private investments. Shekhawat noted that these factors are essential for expanding India’s room inventory and strengthening price competitiveness against major tourism markets around the world.

The minister’s remarks came as part of a detailed address presenting the government’s long-term vision to build a USD 1 trillion tourism economy by 2047, a goal that would generate millions of new jobs across the country. He also emphasised the need for modern hospitality models and a new wave of private sector participation to compete with regional peers.

According to FICCI President Harsha Vardhan Agarwal, the tourism sector currently contributes 5.2 percent directly to India’s GDP and supports over 84 million livelihoods. With strong policy support, he believes the industry could evolve into a USD 250 billion opportunity by 2030.

India has already launched one of the largest tourism infrastructure programmes in the world, with more than Rs 12,000 crore invested in developing destinations under a challenge-based model. The government is creating 50 world-class destinations while improving overall connectivity through new airports, cruise terminals, extensive highways, inland waterways, and metro networks across major cities.

Shekhawat also highlighted the rapid rejuvenation of temple corridors such as Kashi, Mahakal, Kedarnath, Puri and Ayodhya, calling them among the most transformative tourism initiatives in modern India.

Despite its cultural depth, India currently attracts only 10 million international visitors, far behind global leaders. Industry bodies believe this gap represents a massive untapped opportunity that infrastructure status can help unlock.