Foreign Direct Investment: An Exploration of Opportunities in Indian Tourism

Abstract

Travel and tourism is the largest industry in the world in terms of employment in almost every country of the world. The employment, investment, revenue and value addition to the society is much more than any industry in the world in virtually any country (UNWTO). FDI is one of the routes through which developing countries can carry out tourism, but the dynamics of FDI in this dynamic sector, and its implications, have been relatively little studied. There is very little empirical information about the extent of tourism-related FDI in the global economy or its overall impact. The main aim of this article is to analyse the foreign investment in India’s tourism sector. The central questions which will be addressed are what is meant by foreign investment in tourism sector, what are the dimensions of such investment and further the investment opportunities in Indian tourism.