India's tourism sector is set for substantial growth following the announcements made during the Union Budget 2025-26, presented by Union Finance Minister Nirmala Sitharaman on February 1, 2025. This year’s budget emphasizes the enhancement of travel and tourism across the nation with several strategic initiatives focused on infrastructure development, skill enhancement, and financial support, clearly indicating the government’s push to make India a global tourism hub.
One of the major plans involves the development of the top 50 tourist sites across India. These sites will be upgraded through partnerships with state governments, utilizing a challenge model to promote competitive selection for funding. "The top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode. Land for building key infrastructure will have to be provided by states. Hotels in those destinations will be included in the infrastructure HML," said Sitharaman, underlining the collaborative effort needed to uplift these key attractions.
Alongside the development of tourist sites, the government announced several key initiatives aimed at providing significant support to the tourism sector. Among these initiatives is the expansion of financial backing for homestay operations. The government will provide MUDRA loans to homestay owners, fostering local entrepreneurship and community-driven tourism. This move not only promotes jobs but also enhances the experience for tourists seeking authentic stays.
Another focal point of the budget is skill development. Sitharaman noted, "To facilitate employment-led growth, we will organise intensive skill-development programs for our youth, particularly in Institutes of Hospitality Management." Special training programs will be conducted to equip young people with the necessary skills to excel in the competitive tourism and hospitality sectors, ensuring the industry can meet its growing demands.
Connectivity also plays a pivotal role in tourism growth, and the government pledges to improve transport and logistics infrastructure. An emphasis on simplifying visa processes was highlighted by the introduction of a streamlined e-visa system along with visa-fee waivers for certain tourist groups, aimed at enhancing the experience for international travellers.
Spiritual and heritage tourism will receive special attention, particularly with regards to destinations linked to Lord Buddha’s life. "Continuing with the emphasis on places of religious and historical significance, there will be a special focus on destinations related to the life and times of Lord Buddha," Sitharaman announced. This focus is expected to reinforce India’s status as a key Buddhist pilgrimage destination, attracting both domestic and international tourists.
Recognizing India’s vast potential in medical and wellness tourism, the budget also proposed initiatives under the ‘Heal in India’ program, where the government will collaborate with private partners to bolster medical tourism. Sitharaman emphasized, "Medical Tourism and Heal in India will be promoted in partnership with the private sector along with capacity building and easier visa norms." This is aimed at drawing foreign patients for treatment and enhancing India's reputation as a globally recognized medical destination.
The industry’s stakeholders have reacted positively to the budgetary measures. Rikant Pittie, CEO of EaseMyTrip, remarked, "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." This mindset reflects the broader agreement among industry leaders about the budget’s capacity to fuel growth and bolster India's tourism economy, which is integral for job creation and economic resilience.
Experts have also indicated the potential for reduced costs and improved access to credit for hotels involved at these top tourist destinations. The classification of hotels under the harmonized infrastructure list will help them secure financing at lower rates, as noted by Rajiv Mehra, president of the International Association of Tour Operators.
Overall, the initiatives announced as part of the Budget 2025-26 signify the government's commitment to advancing the travel and tourism sector as one of the major components of India's economic development strategy. With strategic investments aimed at enhancing infrastructure, improving skills, and promoting heritage and medical tourism, there is optimism about the invigorated growth prospects for this industry. The roadmap laid out for tourism initiatives is poised to strengthen India's place as a must-visit destination on the global tourism map, promising to create significant employment opportunities and drive substantial economic growth.