Rajiv Gauba, Member, NITI Aayog, said high costs and regulatory overload continue to remain key challenges for the hospitality industry, hurting the competitiveness of Indian hotels against global destinations.
Speaking on the need for reforms, Gauba said excessive Floor Area Ratio (FAR) norms, high parking charges and the requirement for multiple excise licences within the same building significantly increase operational costs for hotels in India.
He said NITI Aayog has recommended an easier compliance framework for the sector with a focus on reducing unnecessary approvals and simplifying regulations.
According to Gauba, the existing regulatory structure makes hospitality projects more expensive and impacts India’s attractiveness as a tourism and business travel destination.
The recommendations are part of the Centre’s larger reform push focused on rationalising compliance, reducing regulatory burden and improving ease of operations for businesses across sectors.
The comments come amid the government’s ongoing efforts to move towards a more trust-based governance framework and remove outdated regulations that add to costs without improving outcomes.
(Edited by : Juviraj Anchil)
First Published: May 12, 2026 2:05 PM IST
