India's Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, is being hailed as promising for the nation's healthcare and tourism industries. With ambitious plans and strategic allocations, the budget aims not only to uplift India's global standing as a medical tourism hub but also facilitate greater access and appeal for international travelers.
Sitharaman announced the allocation of Rs 20,000 crore to implement the private sector-driven research initiative, reinforcing the government's commitment to advancing healthcare innovation. A significant aspect of the budget is the introduction of the 'Heal-in-India' initiative, aimed at fostering the growth of medical tourism by enhancing the healthcare facilities across the country. Sameer Bhati, Director of Star Imaging and Path Lab, emphasizes the potential marked growth of medical tourism due to India's legacy of providing quality healthcare at affordable pricing. 'The Budget’s focus on upgrading healthcare facilities will attract more patients,' he stated.
While the budget does not lack ambition, Bhati noted the necessity for expanded support, including tax breaks for hotels and facilitating easier international tourist access, to achieve maximum impact. Besides direct medical tourism incentives, the budget also highlights the importance of India's rich cultural heritage. It earmarks resources for projects centered around places of religious and historical significance, especially those associated with the life of Lord Buddha, indicating the government's nuanced perspective on tourism.
Maesh Iyer, Managing Director and CEO of Thomas Cook (India) Limited, shared insights on how these measures would benefit the overall tourism sector. 'The development of 50 key tourist destinations through state partnerships will enlarge India's tourism footprint globally, creating long-term employment opportunities,' he commented. This strategic approach, focusing on infrastructure development and enhancing visitors' experiences through improved connectivity, aligns with the growing need for sustainable and responsible tourism.
Industry leaders have voiced support for these initiatives and their potential to invigorate various sectors. The expansion of air connectivity under the UDAN initiative, covering 120 new routes and the establishment of greenfield airports, is expected to democratize travel and bolster tier-2 and tier-3 cities as viable tourist and business destinations.
K.B. Kachru, President of the Hotel Association of India, describes the budget as progressive, noting the emphasis on tourism job creation and infrastructural improvements. 'The budget highlights the importance of promoting both medical and religious tourism, improving visa processes, and enhancing international travel,' Kachru stated.
The Economic Survey 2024-25 identified Swadesh Darshan as one of the government's significant programs aimed at promoting integrated tourism development with sustainable practices. This initiative, now rebranded as Swadesh Darshan Scheme 2.0 (SD 2.0), is rooted in the vision of crafting responsible tourism destinations within India’s fabric.
Rajesh Magow, co-founder and Group CEO of MakeMyTrip, echoed sentiments of optimism pertaining to the budget measures. He remarked on the reformist shift focusing on infrastructure and accessibility, stating, 'Strengthening regional connectivity through the modified UDAN scheme will open new corridors of travel, incorporating uncharted territories of India.
Moving beyond iconic established tourist hubs, the government's approach encourages states to innovate and compete for tourism management, spurred by performance-linked incentives. Efforts to bolster the hospitality sector include incorporating hotels within the harmonized infrastructure list, paving the way for substantial long-term investments.
Vishal Suri, Managing Director and CEO of SOTC Travel, underscored how the budget's emphasis on Mudra loans for small enterprises and homestays can stimulate grassroots entrepreneurship, signifying access to beneficial funding for local services.
Several experts have pointed out the notable uptick in interest for domestic religious tourism. Aloke Bajpai, Group CEO of ixigo, shared recent statistics highlighting growth patterns for trips to renowned destinations such as Varanasi and Haridwar, showing bookings increased significantly year-over-year.
Atlys Founder and CEO Mohak Nahta celebrated the budget decisions, asserting, 'Streamlining visa access is fundamental to driving tourism growth. These measures will help attract travelers globally.' The emphasis on simplifying travel for tourists aligns with the broader goal of boosting employment and invigorate local economies.
Other experts praised the holistic strategy of partnering public and private sectors to reshape the tourism ecosystem. Shikhar Aggarwal, JMD of BLS International, posited, 'The government's approach is forward-thinking, promoting initiatives to convert tourism potential to actual economic empowerment.'
Overall, the Union Budget 2025-26 presents a broad strategy aimed at propelling India's healthcare and tourism sectors onto the international stage, focusing on innovation, investment, accessibility, and sustainable growth. With inputs from various industry leaders, the success of these measures is contingent on execution, resulting in improved facilities and services and attracting global visitors intrigued by India’s multifaceted offerings.