Hospitality sector FDI spurts to $2.23 billion in April

NEW DELHI: Reflecting increased interest of foreign players in the country's hospitality industry, the hotel and tourism sector witnessed a sudden spurt in FDI in April, attracting $ 2.32 billion.

According to the data from the Department of Industrial Policy and Promotion (DIPP), the hospitality industry had received $ 3.25 billion in 2012-13, second only to the services sector in getting foreign direct investment (FDI).

The FDI in the hotel and tourism sector in April compares with $ 6.63 billion received during the 13 years ended March 2013, according to the DIPP, an arm of the Commerce and Industry Ministry. Foreign inflows in the sector did not figure in the DIPP's list of top 10 recipients of FDI prior to September 2012.

"Opportunities are increasing in Indian hotel and tourism. 100 per cent FDI is allowed in the sector and further opening up of civil aviation sector for foreign airlines would help in attracting foreign players," a DIPP official said.

FDI into India increased 24.2 per cent year-on-year to $ 3.95 billion in April-May of the current financial year.

The government is taking several steps to attract foreign investment. It has liberalised the FDI regime in as many as 12 sectors, including retail, power exchanges and telecom.