India’s homestay sector is emerging as a powerful driver of tourism, culture, and community-led growth. According to NITI Aayog’s report ‘Rethinking Homestays: Navigating Policy Pathways’, the market reached ₹4,722 crore in 2024, growing at 11% CAGR. Key trends reveal that 69% of Indian travellers prefer offbeat destinations and 72% actively support local communities, while digital nomads fuel long-term stays.

Despite this promise, challenges, such as complex registration, fragmented policies, and limited incentives, persist. With streamlined single-window systems, tax relief, and capacity-building measures, the sector could unlock massive potential in women-led entrepreneurship, cultural revival, and sustainable tourism.