Union Budget 2025: Key Benefits for the Tourism Industry
Union Finance Minister Nirmala Sitharaman, in her Budget 2025-26, announced several key initiatives to strengthen India’s travel and tourism industry. These measures focus on developing destinations, improving skills, enhancing connectivity, and promoting medical tourism. The government aims to make India a globally competitive tourism hub through employment-led growth. The budget introduces strategic reforms that will enhance infrastructure, boost regional connectivity, and attract both domestic and international travelers.
>> Top 50 Tourist Sites Revamp
- Upgradation of top 50 tourist destinations in partnership with states through a challenge-based selection process.
- Inclusion of hotels in these destinations under the infrastructure HML scheme.
>> Tourism Growth Initiatives
- Skill Development – Training programs in hospitality management institutes for youth employment.
- Financial Support for Homestays – MUDRA loans for homestay owners to boost local tourism.
- Better Connectivity – Enhanced transport and logistics infrastructure for seamless travel.
- State-Level Incentives – Performance-linked incentives (PLI) for states improving tourism facilities.
- Simplified Visa Process – Streamlined e-visa system and visa-fee waivers for select tourist groups.
>> Promoting Spiritual & Heritage Tourism
- Special focus on destinations linked to Lord Buddha’s life and other religious heritage sites.
>> Medical Tourism & 'Heal in India' Initiative
- Promotion of medical and wellness tourism with private sector partnerships.
- Enhanced healthcare infrastructure and simplified medical visa processes.
>> UDAN – Regional Connectivity Scheme
- Expansion of UDAN to connect 120 new destinations over the next 10 years.
- Improved connectivity for hilly, aspirational, and North-East region districts.
>> New Greenfield Airport in Bihar
- New airport announced in Bihar along with Patna airport expansion and a brownfield airport at Bihta.
These initiatives aim to boost tourism investments, create jobs, and position India as a world-class travel destination.
Industry View on Union Budget --
Yogesh Mudras, Managing Director of Informa Markets in India - “The Union Budget 2025 presented a progressive roadmap that prioritises infrastructure, economic growth, and regional connectivity. The government’s continued emphasis on regional development and tourism-friendly policies will have a far-reaching impact on multiple sectors, including travel and tourism. The modified Udaan scheme, in particular, is a landmark initiative that will strengthen India’s position as a global tourism hub. The scheme has already benefited 1.5 crore middle-class travellers, and the expansion of the scheme to include 120 new destinations is a game-changer for regional connectivity. With increased accessibility, we anticipate a surge in domestic tourism and business travel, providing a major boost to the tourism industry.”
Mr. Rajiv Mehra, President, IATO – "Developing 50 Tourist Destinations to enhance India’s global standing as a premier tourist destination in partnership with state governments. This will include infrastructure development to improve the overall visitor experience. The focus will be on enhancing the appeal and accessibility of these locations to attract more visitors. Special focus on destinations associated with the Buddha Sector. These sites will be developed to promote spiritual tourism, aiming to attract both domestic and international visitors to elevate India’s status as a spiritual tourism hub. To encourage local tourism, mudra loans will be available to homestay businesses; to promote medial tourism to attract foreign patients under “Heal-in-India” campaigns; to introduce funds-of-funds to support technological innovation and startups in the sector. There is also mention of adding new sector under Udaan Scheme and most important is Visa fee waivers and e-visa options that will be introduced for certain tourist groups to attract more visitors. Mr. Mehra further added that there is no mention of rationalization of taxes and giving export industry status to Tourism industry in the union budget, which is a long pending demand of IATO based on the foreign exchange earnings. These are old pending demands of IATO and Mr. Mehra is hopeful, these will be considered favourably by the GST Council.
Ambika Saxena, CEO, TWH Hospitality - "This year, the government has presented a well-balanced and growth-oriented budget, specifically supporting the tourism and hospitality sectors. The modified Udaan scheme will open doors for the hospitality sector by bringing new tourist destinations into the spotlight. Hotels, resorts, and homestays in unexplored regions will see a surge in demand, encouraging further investment and development. With the government’s push for connectivity and including new 120 destinations, we expect a stronger pipeline in the hospitality sector, catering to both business and leisure travellers in emerging tourism hotspots."
Rajesh Magow, Co-founder & Group CEO, MakeMyTrip - “The Finance Minister’s announcements reflect a clear intent to harness the potential of travel and tourism sector by prioritizing infrastructure, improving access, incentivizing investment, and expanding its reach beyond established hubs. The 50-year interest-free loan to state governments will drive infrastructure development at the destination level, thereby contributing to the tourism growth story. Equally important is the structured push for hospitality. Including hotels in the harmonized infrastructure list across 50 destinations will unlock long-term financing and drive investment, while extending Mudra loans to homestays ensures that smaller entrepreneurs and local communities are equally part of this growth story.”
Dr. Sanjay Sethi, Managing Director & Chief Executive Officer, Chalet Hotels Limited - "The Union Budget 2025 has outlined a set of impactful initiatives that will play a pivotal role in boosting India’s tourism sector, underscoring the government's dedication to advancing the travel and hospitality industry. Key measures, includian visa-free access for specific foreign groups, simplified e-visa procedures, and the expansion of the UDAN scheme to 120 new destinations, will greatly improve connectivity and ease of travel, benefiting both domestic and international tourists. The government’s focus on medical tourism is another welcome move that positions India as a leading global hub for high-quality healthcare and wellness services, driving demand for hospitality and allied sectors. More Importantly, putting extra disposable income in the hands of the consumer will boost overall consumption, as well as help in accelerating domestic tourism and increase demand for hotels and travel services. With tourism playing a critical role for employment generation and economic contribution, these measures will act as strong enablers for sustained growth.”
Mr. Aditya Pande, Group Chief Executive Officer, InterGlobe Enterprises- "This budget outlines a compelling roadmap for a Viksit Bharat. The focus on boosting consumption through targeted tax relief for the middle class, coupled with the government's commitment to streamlining tax procedures, will significantly improve ease of doing business and unlock further economic potential. At InterGlobe Enterprises, we are particularly encouraged by the strategic investments and vision for strengthening the holistic tourism ecosystem in the country, with the development of infrastructure and focus on skilled workforce. These initiatives lay a solid foundation for sustained economic progress and a brighter future for the country.”
Mr K.B. Kachru, Chairman, Radisson Hotel Group South Asia & President – Hotel Association of India (HAI) - “Budget is progressive, especially with its focus on tourism and job creation. The government’s commitment to developing 50 new destinations, and improving infrastructure, is promising. This year’s budget very well highlights the importance of promoting spiritual and medical tourism with neighbouring countries and simplifying visa processes to enhance international travel. Overall, the initiatives taken by the government in this year’s budget are the steps in the right direction for the industry.”
Mr. Shikhar Aggarwal, JMD of BLS International- "The government’s focus on transforming India’s tourism landscape through strategic partnerships and policy reforms is a visionary leap forward. The development of 50 iconic tourist sites in collaboration with states will significantly enhance India’s global appeal as a premier travel destination. At BLS International, we are particularly encouraged by the emphasis on streamlining visa processes and expanding medical tourism through the ‘Heal in India’ initiative, which aligns with our expertise in delivering seamless visa and consular services worldwide. The extension of MUDRA loans to homestays and the harmonized scheme for hotels will empower local entrepreneurs while ensuring standardized, high-quality hospitality infrastructure is a critical step to support inbound and domestic tourism growth. Furthermore, the special focus on Buddhist circuits and spiritual tourism opens new avenues for niche travel experiences, which we are well-positioned to facilitate through our expanded visa service networks. We commend the government’s holistic approach to fostering public-private partnerships and creating an ecosystem where tourism becomes a catalyst for economic empowerment. These measures will not only attract global travelers but also strengthen India’s position as a hub for cultural, medical, and sustainable tourism. BLS International remains committed to supporting this transformative agenda by enhancing accessibility and connectivity for travelers through innovative, tech-driven solutions.
Mr Jatinder Paul Singh, CEO and Co founder, Viacation - The Union Budget 2025’s focus on enhancing tourism infrastructure, improving connectivity, and supporting adventure tourism provides a promising outlook for experiential travel in India. The Budget’s dedication to supporting startups through access to funding, ease of doing business, and the promotion of innovation aligns perfectly with our mission to democratize adventure travel. The government’s renewed focus on local employment through tourism and the development of new destinations further supports our goal of making adventure tourism more sustainable and inclusive. The promotion of medical tourism and the ‘Heal in India’ initiative positions India as a global wellness hub, attracting travelers seeking rejuvenation and holistic healing. We are particularly excited about the potential for growth in the tourism sector, with a strong emphasis on seamless travel experiences and the creation of destination-led employment. We look forward to expanding our reach, offering responsible tourism, and providing unique adventure-filled journeys in some of India’s most scenic and culturally significant locations, aligned with the growing interest in wellness retreats and medical tourism
Mr. Amit Goyal, Regional Managing Director, South Asia – Project Management Institute - “The Union Budget for 2025-26, presented by the Finance Minister, lays a visionary roadmap for India's growth and resilience, embodying the spirit of Atmanirbharta (self-reliance). With a strong emphasis on education and skill development, the budget aims to achieve 100% literacy and enhance the quality of education. Initiatives such as the expansion of the PM Research Fellowship program, and the establishment of three AI Centres of Excellence with an allocation of ₹500 crore. The enhanced allocation to medical education reflects a robust focus on strengthening India’s healthcare infrastructure, addressing both immediate needs and long-term capacity building and also highlights India’s investment in its human capital. The budget also prioritizes infrastructure development, aviation expansion, and innovation, positioning India as a global hub for large-scale projects. This creates significant demand for skilled project management professionals who will be pivotal in executing these ambitious ventures, especially critical ones like the advancement of foundational geospatial infra and data under the PM Gati Shakti Scheme. Moreover, the emphasis on sustainability, through initiatives like Clean Tech, ensures that India’s growth trajectory aligns with global environmental goals, fostering a greener and more sustainable future. In essence, the 2025-26 budget is a forward-looking blueprint that empowers the youth, strengthens the nation's infrastructure, and champions innovation, laying the groundwork for a prosperous and self-reliant Viksit Bharat.”
Arun K Chittilappilly, Executive Chairman and MD, Wonderla Holidays Ltd. - "The Union Budget 2025’s focus on tourism is a visionary step toward strengthening India’s travel landscape. Developing 50 top destinations with state collaboration, enabling land and hotel projects, and introducing MUDRA loans for homestays will boost infrastructure, employment, and sustainable tourism. E-visa extensions and visa fee waivers further enhance accessibility for global travelers. Additionally, tax reforms, including TDS rationalization and higher income exemptions, will increase disposable income, encouraging greater discretionary spending—especially among Gen Z. These measures position India as a global tourism hub while driving economic growth."
Lucas Ramos, Senior Director, Travel & Membership – Asia, Pacific & India, RCI -"Budget 2025 underscores the Indian government’s commitment to positioning tourism as a key pillar of economic growth, job creation, and global engagement. By developing top destinations in partnership with states, enhancing medical tourism through the ‘Heal in India’ initiative, and introducing visa reforms, India is strengthening its appeal as a world-class travel and healthcare hub. The inclusion of hotels in the harmonized scheme and visa waivers for select foreign tourists further reinforce a comprehensive, future-ready travel ecosystem. With strategic policy alignment and private sector collaboration, this budget paves the way for India to become a more accessible, competitive, and thriving global destination."
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