30 Under 30 2025

Budget 2025 focuses on spiritual, medical tourism, and building new travel destinations

The announcements may lead to the emergence of new tourism destinations, an increase in inbound travel, and help hotels get access to credit at lower rates, say stakeholders 

Anubhuti Matta
Published: Feb 1, 2025 05:38:52 PM IST
Updated: Feb 1, 2025 05:51:09 PM IST

Nalanda, an ancient large Buddhist monastery, located near Patna, Bihar, is an UNESCO World Heritage Site. Image: Nicolas Economou/NurPhoto via Getty ImagesNalanda, an ancient large Buddhist monastery, located near Patna, Bihar, is an UNESCO World Heritage Site. Image: Nicolas Economou/NurPhoto via Getty Images

Finance Minister Nirmala Sitharaman made a host of announcements related to the travel and hospitality sector on Saturday as she presented the Union Budget 2025-2026.

Majorly, they included streamlining e-visa facilities along with visa-fee waivers for certain tourist groups, along with developing prominent tourist sites. As part of the plan, 50 tourist destinations will be developed with states expected to provide land for infrastructure.

“To further boost tourism, hotels in the key destinations will be included in the harmonised infrastructure list, ensuring better access to financing and development support," she said.

Rajiv Mehra, president of the International Association of Tour Operators says, “Infrastructure status to hotels in these destinations would help them get access to credit at lower rates thus helping in reducing costs.”

Additionally, states that have demonstrated effective destination management on parameters such as tourist amenities, cleanliness, and marketing efforts are likely to receive performance-linked incentives.

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She said the government will keep continuing to focus on places of religious and spiritual significance, especially on destinations related to the life and times of Lord Buddha. Further, the ‘Heal in India’ initiative will be an effort to boost medical tourism, in partnership with the private sector, she added

.Also read: Union Budget 2025: Legislative climb ahead for nuclear energy; industry optimistic about clean tech

She also announced modifications to the UDAN or the Ude Desh ka Aam Nagrik scheme. Initially launched in 2016, under it, 619 routes connecting 88 airports—including two water aerodromes and 13 heliports—have so far launched operations. To aid enhanced regional connectivity, 120 new destinations will be added in the next decade. The scheme will also be aimed at developing helipads and smaller airports in hilly areas, especially the northeast regional districts. The FM also announced adding greenfield airports in Bihar, in addition to the expansion of the capacity of the Patna airport.

“The Udaan scheme has enabled 1.5 crore middle-class people to meet their aspirations for speedier travel,” she announced in her eighth budget speech.

The hospitality and tourism sector is also set to benefit from the efforts to be dedicated towards intensive skill development programs for the youth, including institutes of hospitality management, to promote "employment-led" growth.

To aid local economic growth, the government also plans to strengthen homestays by offering Mudra loans that don’t require borrowers to offer security against them.

Also read: Push for health care: BCD exemption for lifesaving drugs, additional medical seats and more in Budget 2025

Various stakeholders in the sector have welcomed the budget calling it progressive and beneficial as it could help unlock growth opportunities and boost tourism in India.

“The budget presents a transformative vision for India's travel and tourism sector, reinforcing its role as a key driver of economic growth and employment,” says Rikant Pittie, CEO and co-founder, EaseMyTrip, an online travel aggregator. He adds, "With a focus on seamless travel, enhanced infrastructure, and an enabling policy framework, this budget lays a strong foundation for a new era of tourism-led economic growth, ensuring India remains a top destination for both domestic and international travellers."

The focus on public-private collaboration in developing top destinations is particularly encouraging, say sector experts. “It signals a shift towards structured, long-term growth rather than short-term measures. With the right execution, these initiatives can strengthen India’s position as a leading global tourism destination while creating significant employment opportunities across the sector,” says Karan Agarwal, director of Cox & Kings, a travel brand.

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