Union Budget 2025 boosts India’s tourism with top 50 destination development, Buddhist and medical tourism, and MUDRA loans for homestays.
On February 1, Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025, infusing fresh optimism into India’s tourism industry. Prioritizing expansion, job creation, and infrastructure enhancement, the sector is poised for a promising year ahead. Let’s examine the significant announcements in the budget that are set to shape the future of tourism in India.
Key Highlights of Budget 2025 for the Tourism Sector
1. Developing Top 50 Tourist Destinations
In a move to bolster India’s reputation as a top travel hotspot, the government outlined a plan to develop 50 key tourist sites in collaboration with state authorities. This initiative will involve substantial infrastructure enhancements to enrich the visitor experience and attract a greater influx of travelers.
2. Strengthening Destination Development through Partnerships
Furthering its commitment to tourism infrastructure, the government has earmarked 22 locations across the country for development in conjunction with state governments. The emphasis will be on increasing the accessibility and attractiveness of these destinations, making them more appealing to both domestic and international tourists.
3. Dedicated Efforts to Promote Buddhist Tourism
Recognizing the cultural and spiritual significance of Buddhist heritage sites, the budget has introduced targeted initiatives to develop locations connected to the life and teachings of Lord Buddha. This plan aims to boost spiritual tourism, drawing both global and local visitors while reinforcing India’s position as a key spiritual travel destination.
4. Expanding Medical Tourism with the ‘Heal in India’ Initiative
Positioning India as a leader in global healthcare tourism, the government is set to enhance medical tourism by streamlining visa procedures and fostering private sector partnerships. The “Heal in India” initiative will further solidify the country’s status as a preferred healthcare destination by ensuring seamless access to top-tier medical facilities for international patients.
5. Enhancing Connectivity through PM Gatishakti
A major step towards improving travel infrastructure, the budget introduced provisions under the PM Gatishakti initiative that will grant private players access to critical data and mapping resources. This move is expected to facilitate better connectivity, streamline logistics, and simplify transportation, ultimately making tourist destinations more accessible.
6. Financial Support for Hospitality Sector and Homestays
To uplift the hospitality industry, Finance Minister Sitharaman proposed a harmonized scheme for hotels, ensuring standardized services across establishments. Additionally, MUDRA loans will be extended to homestays, empowering small businesses and local entrepreneurs to participate in the tourism sector. This initiative aligns with the government’s broader vision of fostering decentralized tourism and boosting grassroots entrepreneurship.
Visa Exemptions for Select International Tourist Groups
To encourage a higher influx of overseas visitors, the government has announced visa exemptions for specific foreign tourist groups. This measure is designed to streamline entry procedures, enhancing India’s appeal as a travel destination. By making international travel to India more convenient, the initiative aims to leverage the country’s diverse cultural and natural attractions, ultimately driving growth in the tourism sector.
Expanded UDAN Scheme to Boost Regional Connectivity
The government is set to roll out an upgraded UDAN scheme aimed at strengthening regional air connectivity by adding 120 new destinations. Over the next decade, the initiative is expected to facilitate travel for 4 crore passengers. Finance Minister Nirmala Sitharaman highlighted that the scheme will extend support to helipads and smaller airports, particularly in hilly, aspirational, and northeastern districts, improving accessibility in these regions. Additionally, greenfield airports will be developed in Bihar to cater to the state’s growing aviation needs. So far, the UDAN initiative has successfully launched operations on 619 routes, linking 88 airports, including two water aerodromes and 13 heliports, benefiting 1.4 crore travelers.
With these strategic initiatives, the Union Budget 2025 paves the way for a transformative phase in Indian tourism, creating a robust framework for growth, sustainability, and global competitiveness.
India’s tourism sector is currently valued at $256 billion, reflecting a 10% growth since 2019. According to the World Travel & Tourism Council, the industry employs 45 million people, with domestic travel leading the market, driving a 15% increase in visitor spending. Tourism contributes 5% to India’s GDP, with direct contributions at 2.6% and indirect impact at 2.4%, as per the 2024 National Account Statistics report.
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