U.S. firms eye expanding investments in India’s tourism sector

India allows 100% FDI in hotel, resort, and tourism infrastructure construction and development, emphasizing tourism as a key economic driver.

Dignitaries at the roundtable / USISPF

Confidence in India’s fast-growing tourism sector is surging, with leading U.S. companies pledging deeper investments and collaboration following a high-level roundtable hosted by the U.S.-India Strategic Partnership Forum (USISPF) in New Delhi on Aug. 29.

The event brought together senior executives from global firms such as Booking.com, Agoda, Expedia, Airbnb, Marriott International, American Express, Mastercard, Visa, Netflix, and VFS Global, alongside major financial institutions including HSBC, to discuss opportunities in India’s tourism ecosystem.

Also read: USISPF strengthens India executive leadership board

Union Minister of Culture and Tourism Gajendra Singh Shekhawat, addressing the roundtable, highlighted India’s cultural heritage as a key driver of growth. “With 100 percent FDI permitted in the tourism sector, we have opened the door wide for investment and inbound tourism. The United States remains a critical partner in our growth story, and together we will create the right environment to make India a global tourism leader.”

Mukesh Aghi, president and CEO of USISPF, emphasized the importance of public–private collaboration. “With India’s rich cultural heritage, expanding hospitality infrastructure, and supportive policy framework, tourism can become a central pillar of India’s services economy and a powerful driver of jobs and growth,” he noted.

USISPF held a roundtable in New Delhi with @gssjodhpur, the Hon. Union Minister of Culture and Tourism (@tourismgoi).

Discussions and dialogue with industry leaders on strengthening tourism and the hospitality sector, in line with strengthening the strategic relationship… pic.twitter.com/RvKzK7n3uM
— US-India Strategic Partnership Forum (@USISPForum) August 28, 2025

The discussions underscored opportunities in spiritual tourism, wellness, cultural circuits, heritage destinations, and new emerging hubs, while stressing the need for ease of doing business, targeted incentives, and infrastructure development. A joint working group will be formed to translate dialogue into concrete initiatives.

India’s tourism industry currently contributes about 5 percent of GDP, projected to reach 10 percent by 2030. The sector supports over 76 million jobs and recorded a 216 percent surge in U.S. foreign direct investment (FDI) in hospitality, rising from $43.8 million in 2023 to $138.4 million in 2024.

With India permitting 100 percent FDI in the construction and development of hotels, resorts, and tourism infrastructure, the government has underscored its commitment to positioning tourism as a key driver of economic growth. In FY 2024–25, India recorded $9.8 billion in total FDI inflows, a 14 percent increase year-on-year, with tourism and hospitality emerging as a major contributor. Overall, the sector now generates over $199.6 billion in GDP and remains central to India’s services-led growth story.

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