Abstract:Indian Tourism has catapulted into the limelight in recent years for all the right reasons. From being voted the No. 1 destination in the world by Conde’ Nast Traveler Readers’ Survey to being the partner country at the ITB Berlin last year to its most famous monument the Taj Mahal topping the ‘Seven Wonders of the World’ poll, India has garnered enough attention thereby increasing its chances of featuring on the itinerary of every tourist. Leading tourism organizations including the World Tourism Organization (WTO) and the World Travel and Tourism Council (WTTC) have forecasts’ India to be one of the most dynamically growing countries within the tourism world in the next 10-15 years. The question now is –what is India doing to sustain and capitalize on this newly acquired attention and opportunity? With a plethora of tourism products varied enough to make the tourist experience something new everyday, attraction-wise the country is in a league of its own. But the popularity of a destination does not depend solely on the attractions it offers. A multitude of factors governs its ascent or descent on the popularity chart. Having identified the service providers at the grass root level (unorganized sector) like the taxi drivers, railway porters, tourist guides etc., to be one of the major wheel on which Indian tourism operates, this paper discusses the need for organizing Capacity building programmes for enhancing their servicing skills. The capacity building programmes conducted by the Indian Institute of Tourism and Travel Management (IITTM) as part of the main ‘Capacity Building for Service Providers (CBSP)’ Scheme of the Indian Ministry of Tourism is being discussed in detail.