Tourism Minister to meet Finance Minister for ‘Infrastructure’ Status for Hospitality Sector

Gajendra Singh Shekhawat

Union Tourism Minister Gajendra Singh Shekhawat has urged hospitality sector stakeholders to create a comprehensive proposal seeking infrastructure status for the industry—a long-standing demand that would enable access to lower-cost debt and encourage reinvestment of profits within the sector.

“We are in discussions with Finance Minister Nirmala Sitharaman. However, more groundwork is needed. I have requested the CII and industry representatives to draft detailed documents so that we can present a strong case to the Ministry of Finance,” Shekhawat stated during the 18th CII Annual Tourism Summit.

The push for infrastructure status aligns with the sector’s efforts to recover from the pandemic and address challenges, including a decline in foreign tourist arrivals. India recorded 4.778 million Foreign Tourist Arrivals (FTAs)  during January–June 2024, which remains below pre-pandemic levels.

The government has introduced several initiatives to revive the sector, including e-visas, the Chalo India campaign, and revamped versions of the Incredible India website. Additionally, the summit featured the release of a CII-EY report projecting that the tourism sector will create 6.1 million new jobs by 2036-37, emphasizing its potential for economic and gender-inclusive growth.

Suman Billa, Additional Secretary at the Ministry of Tourism, highlighted a three-pronged strategy to bolster the industry:
1. Advocating for infrastructure status with the Ministry of Finance and RBI.
2. Rationalizing development norms across states, such as **FSI regulations**.
3. Simplifying clearance processes and ensuring time-bound approvals to enhance ease of doing business.

With these measures, Shekhawat expressed optimism about the limitless possibilities for India’s tourism sector, fueled by infrastructure development and digital transformation.

 

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