According to industry experts, the Union Budget has introduced several initiatives to boost tourism, create new growth opportunities, and foster a more inclusive ecosystem. Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman, announced plans to develop the top 50 tourist destinations in partnership with states through a "challenge mode", emphasising outcome-driven execution and performance-linked incentives. This approach is expected to encourage states to innovate and compete in destination management. Additionally, states will provide land for building infrastructure. At the same time, hotels at these destinations will be included in the harmonised master list (HML) of infrastructure.
To support smaller enterprises and local economic growth, the government also revealed plans to expand homestays through Mudra loans, which will help entrepreneurs grow their businesses. She further outlined measures to streamline e-visa facilities to increase foreign tourist arrivals (FTAs), which have only slowly recovered to pre-pandemic levels. In response to the Economic Survey's concerns, the government is focusing on spiritual tourism, particularly destinations linked to the life of Lord Buddha, and promoting medical tourism in collaboration with private players. To encourage local tourism, the tourism ministry's allocation increased to Rs. 2,534.93 crore (US$ 290.80 million) in the Budget, up from Rs. 2,479.62 crore (US$ 284.46 million) the previous year. Industry leaders believe these initiatives will drive investment, create jobs, and strengthen India's position as a premier tourism hub. The emphasis on tax exemptions and rationalisation of tax collection further boosts the sector’s potential.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.