One of the most striking developments during the last two decades is the spectacular growth of FDI in the global economic landscape. This unprecedented growth of global FDI in 1990 around the world make FDI an important and vital component of development strategy in both developed and developing nations and policies are designed in order to stimulate inward flows.
Tourism is one of the most rapid growing industries in the world. Many developing countries consider it as possibility for raising foreign exchange earnings. This study aims to analyze the impact of change in Government FDI policy in early 2000s on inbound foreign direct investment in Indian tourism industry. The study focuses on the need of FDI in Indian tourism sector and growth in inbound FDI in tourism industry.