India has vast tourism potential, but the sector is being held back by strict regulations, procedural delays and slow decision-making, NITI Aayog has said. The policy body has urged the Centre to simplify approvals and make tourism a more profitable, growth-oriented industry.
NITI Aayog released a 104-page report titled on unlocking opportunities for tourism and hospitality, listing key bottlenecks. Union Tourism Minister Gajendra Singh Shekhawat, speaking at the release, said starting a hotel often requires 30 to 35 licences, no-objection certificates and permissions, which can take a long time even after large investments.
Among its recommendations, NITI Aayog called for scrapping the Tourism Ministry’s initial, project-stage approval. It also proposed a single-window system for plan approvals and licences, replacing multiple permits for services such as restaurants, laundry and salons with one consolidated health-trade licence for the entire premises.
The report further suggested a single liquor licence for serving alcohol across different areas within the same hotel campus. For homestays, it sought relaxation of requirements, raising the current cap from six rooms to nine and removing the rule that requires an NOC from local bodies at the time of registration.
It also recommended easing the Motor Vehicles Act provision that triggers re-taxation if an out-of-state vehicle stays beyond 60 days, and removing minimum capital requirements and educational conditions for registering as a travel agent in some states.
