The policy could be announced as early as next week.
Earlier this month, senior officials of the tourism ministry had a meeting with aggregators like Air B&B, Makemytrip, Yatra and Oyo to discuss details and ways to promote homestays.
"Promoting homestays means providing employment to a local family, giving tourists a family experience and also to help turn unproductive real estate productive. We will come out with a national policy by October end," Tourism Secretary Rashmi Verma told PTI.
"The idea is to turn existing establishments and give them a fillip to accommodate tourists without building more real estate," said an official.
The ministry is also exploring if licensing norms and levies on homestay establishments registered under the bed- and-breakfast scheme can be eased to encourage more households to let out rooms for tourists, making up for the shortfall of hotels.
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