The country's hotel and tourism sector has witnessed a sudden spurt in foreign direct investment (FDI) during the last financial year, reflecting increased interest in the country's hospitality industry.
According to the data of the Department of Industrial Policy and Promotion (DIPP), the sector has attracted FDI worth USD 3.21 billion during April-February 2012-13. DIPP is an arm under the Commerce and Industry Ministry which deals with FDI related matters.
"Now everybody is looking at India. Huge opportunities are there in Indian hotel and tourism sector. FDI climate in the sector has improved a lot in the country," President of Indian Association of Tour Operators (IATO) Subhash Goyal said. He said that 100 per cent FDI is allowed in the sector and further opening up of civil aviation sector for foreign airlines has also helped in attracting foreign players.
However, he asked the government to take more steps to boost investment in the sector.
"There is a need to look at land related problems for the sector besides taxation and human resource related issues," he added.
Further, in India, services sector attracted highest FDI. During April-February 2013, the sector received foreign inflows in the order of USD 4.74 billion. During the period, overall FDI has declined 38 per cent to USD 20.89 billion. Decline in foreign investments could put pressure on the country's balance of payments and may also impact the value of the rupee.