U.S. Companies Bullish on India Investments
India’s tourism industry is on a strong upward trajectory, contributing approximately 5 percent to the nation’s GDP, with projections to reach 10 percent by 2030
The U.S.-India Strategic Partnership Forum (USISPF) convened a high-level CEO roundtable with Hon’ble Union Minister of Culture and Tourism, Shri Gajendra Singh Shekhawat, in New Delhi, bringing together senior leaders from the U.S.–India tourism ecosystem to explore avenues for deeper collaboration in this rapidly growing sector.
Speaking at the roundtable, Union Minister Shri Gajendra Singh Shekhawat said: “India’s cultural diversity, history, cuisine, and traditions make it one of the world’s most vibrant destinations. 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. Our focus is on unlocking Bharat’s cultural richness, boosting tourism, and creating new opportunities for growth towards realising Prime Minister Shri Narendra Modi’s vision of Vikas Abhi, Virasat Bhi.”
Dr. Mukesh Aghi, President & CEO of USISPF, added, “Industry–government collaboration is essential to fully realize the potential of India’s tourism sector. 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.”
The roundtable featured participation from leading U.S.-based companies, including Booking.com, Agoda, Expedia, VFS Global, American Express, Mastercard, Visa, Netflix, Airbnb, and Marriott International, alongside global financial institutions such as HSBC.
The companies in the sector are experiencing double-digit growth in India and are actively exploring new opportunities to expand and invest in the country. The discussions emphasized opportunities to unlock India’s diverse tourism potential, from spiritual and cultural circuits to wellness, heritage, and new destination tourism. Both sides underscored the importance of ease of doing business, targeted incentives, infrastructure development, and public–private collaboration. A joint working group will be established to advance actionable initiatives and sustain momentum in strengthening India’s tourism ecosystem.
India’s tourism industry is on a strong upward trajectory, contributing approximately 5 percent to the nation’s GDP, with projections to reach 10 percent by 2030. The sector sustains more than 76 million jobs across hospitality, transport, and communications. The sector is also witnessing strong investor confidence, with a 216 percent surge in foreign direct investment (FDI) from the United States in hospitality and hotels 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 US $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 US $199.6 billion in GDP and remains central to India’s services-led growth story.
It may be noted that USISPF is a non-profit, non-governmental, and non-partisan organization with offices in Washington, D.C. and New Delhi. USISPF’s members include global companies with a combined market valuation of over $10 trillion and more than 6 million employees. USISPF bridges the gap between business and government by fostering closer public-private partnerships across the two countries.
