Hospitality policy in India

With a view to stimulating domestic and international investments in Hospitality sector in India, the government has implemented the following policy initiatives:

100% FDI under the automatic route is now permitted in all construction development projects including construction of hotels and resorts, recreational facilities and city and regional level infrastructure.

100% FDI is now permitted in all airport development projects subject to the condition that FDI for upgradation of existing airports requires FIPB approval beyond 74%.

A five year tax holiday has been extended to Companies that set up hotels, resorts and convention centers at specified destinations, subject to compliance with the prescribed conditions.

Plans for substantial upgradation of 35 regional airports in smaller towns and the privatization and expansion of Delhi and Mumbai airports

The aforementioned initiatives have resulted in increasing FDI inflows
being witnessed by this industry.