HBI Staff | Hyderabad 
The Union Budget 2025 has placed tourism and hospitality at the forefront of its growth strategy, introducing several transformative measures that promise to reshape the industry and boost its global competitiveness.
One of the most significant announcements is the development of 50 top tourist destinations under challenge mode. This initiative, coupled with streamlined e-visas and visa-free access for select international tourists, is expected to significantly increase inbound travel, enhancing India’s appeal as a global tourism hub. The inclusion of new hotels in these destinations under the infrastructure harmonized list (HML), where land is provided by state governments, marks another crucial step. Hospitality investors can now avail infrastructure lending at more favorable terms, with enhanced limits and access to larger funds via External Commercial Borrowings (ECBs).
Connectivity also takes center stage in this year’s budget, with a modified UDAN scheme aimed at connecting 120 additional destinations. This initiative, alongside the development of helipads in the Northeastern region, will open up remote but picturesque destinations to travelers. These measures are expected to drive significant growth in tourist footfall, particularly in underexplored regions of the country.
The government’s focus on the Buddhist Circuit is another noteworthy highlight. By investing in infrastructure and promoting these culturally significant sites, the plan creates a lucrative opportunity for the hospitality sector to develop premium accommodations and curated travel experiences. This will cater to both domestic and international travelers, further strengthening India’s position as a spiritual and cultural tourism hotspot.
Moreover, the budget addresses the need for skill development and community involvement in tourism. With enhanced initiatives through Institutes of Hotel Management (IHMs) and financial support for homestay businesses via Mudra loans, the government aims to foster high-quality services while empowering local communities to play an active role in the tourism ecosystem.
Industry leaders have lauded these initiatives.
K Syama Raju, President, FHRAI
“I am happy to see the Union Budget 2025 focus on growing India’s tourism sector. The plan to develop the top 50 tourism destinations in partnership with state governments is a major initiative. This collaboration will not only improve infrastructure but also help spread tourism across the country, attracting more visitors and benefiting local communities. Additionally, the inclusion of hotels in the harmonious master list and the granting of infrastructure status to the hospitality sector is a significant move. This aligns with our long-standing request for granting of Infrastructure Status to the hospitality industry. This will facilitate access to cheaper, long-term financing, enabling hotels in these newly developed destinations to upgrade their facilities and offer world-class services, further boosting the sector.
The focus on medical and wellness tourism through the ‘Heal-in-India’ initiative in the Union Budget 2025 is a forward-thinking move that will strengthen India’s position as a global leader in healthcare. India has already earned a reputation for providing world-class medical treatments at a fraction of the cost found in developed countries. By promoting ‘Heal-in-India,’ the government aims to further capitalize on this strength, attracting international patients seeking affordable, high-quality healthcare services. This initiative will not only boost medical and wellness tourism but will also create a platform for India’s healthcare industry to expand its global footprint. With the support of the government, healthcare facilities across the country will be encouraged to offer specialized treatments and services, making India an attractive destination for patients from both developed and developing nations.
The introduction of visa fee waivers and e-visa options for certain tourist groups will make India an even more attractive destination. Simplifying the visa process will encourage more international visitors, boosting tourism and further contributing to the economy.
The government’s focus on promoting religious tourism is also noteworthy. India’s rich spiritual and cultural heritage is a major draw for both domestic and international tourists, and the efforts to enhance infrastructure at key religious sites will create more organized, accessible, and enjoyable experiences for pilgrims and travelers alike. This will help further establish India as a leading destination for religious tourism, driving both tourism revenue and cultural exchange.
The modified UDAN scheme, aimed at enhancing regional connectivity to 120 new destinations and carrying an additional 4 crore passengers over the next 10 years, is another important initiative. This will make travel more accessible to a larger number of people, driving tourism to both popular and emerging destinations and improving economic opportunities for local communities.
The introduction of Mudra loans for homestay businesses is another positive step. It will give local entrepreneurs the chance to start and grow small tourism businesses, especially in lesser-known areas. This will help create more jobs and encourage tourism in these regions.
The National Geospatial Mission to improve mapping and spatial data will aid in better planning and development of tourism infrastructure. Overall, these measures show that the government is committed to making India a top global tourism destination and creating new opportunities for growth, jobs, and innovation in the sector.”
Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts
“The Union Budget’s strategic emphasis on tourism is a welcome move that will significantly boost India’s hospitality industry. The development of 50 key destinations under challenge mode, along with streamlined e-visas and visa-free access for select tourist groups, will drive international footfall and enhance India’s global appeal. The government’s initiative to include new hotels coming up in 50 key destinations in the infrastructure harmonized list (HML) for projects where land will be provided by the state governments is a welcome step. This will help hospitality investors to avail infrastructure lending at easier terms with enhanced limits and offer access to larger amounts of funds as External Commercial Borrowings (ECBs).
The government’s plan to introduce a modified UDAN scheme for strengthening connectivity to additional 120 destinations and supporting helipads development in northeastern region will help to connect potential tourist destinations in the region.
Particularly, the focus on the Buddhist Circuit presents immense opportunities for hospitality expansion. With greater infrastructure and promotion around these culturally significant sites, we see strong potential to develop quality accommodations and travel experiences in these regions, catering to both domestic and international travelers.
Additionally, skill development initiatives through IHMs and financial support for homestays via Mudra loans will strengthen the sector, ensuring high-quality service and deeper community involvement in tourism growth. Cygnett Hotels is keen to align with these initiatives, expanding our footprint in high-growth destinations and playing a pivotal role in India’s tourism success story.”
Simranjeet Singh, Director, CYK Hospitality
“The Union Budget 2025 marks the beginning of substantial financial reforms that are going to reshape the F&B consultancy and hospitality sectors. The expansion of credit guarantee coverage will provide better financial support for startups and small enterprises, reducing risks while paving the way for innovation. The strengthening of the role played by financial institutions will provide much-needed support toward funding early ventures to scale up quickly in the hospitality and food businesses.
The establishment of a dedicated startup credit ecosystem is a game changer, particularly for first-time women entrepreneurs and businesses from SC and backward communities, creating a larger scope of participation in the industry. In addition, simplifying access to credit could be a boon in itself, particularly with schemes such as the ₹2 crore loan initiative for women entrepreneurs that would encourage newer ventures and diversify and promote inclusivity in the F&B space.
It is in this context that the sector expects accelerated growth, decked in furtherance of enhancement of supply chains, going into the promotion of regional cuisines, and the development of the agriculture sector, all of which pave the way. “
Harsh Sharma, Director, Mayfair Spring Valley resort Guwahati
The government’s renewed focus on infrastructure, connectivity, and spiritual tourism aligns with our commitment to providing world-class hospitality in one of India’s most scenic and culturally significant locations—Northeast’s Assam. The emphasis on developing top destinations and the inclusion of hotels in the harmonized infrastructure list will further strengthen the hospitality sector. Additionally, the promotion of medical tourism and the ‘Heal in India’ initiative will position India as a global wellness hub, attracting travelers seeking rejuvenation and holistic healing. We are excited about the potential tourism growth, especially with the focus on seamless travel experiences, destination-led employment generation, and a growing interest in wellness retreats and medical tourism.
Ritwik Khare, Founder and CEO, ELIVAAS
The Union Budget 2025 provides a significant boost to tourism and hospitality, with plans for the development of 50 top destinations and enhanced infrastructure. This presents exciting opportunities for us to redefine luxury villa experiences, not only in popular tourist hotspots but also in offbeat and emerging destinations across India and the world. The government’s focus on improving connectivity through the Udaan scheme and easing visa facilitation will help elevate India’s position as a top global travel destination, ensuring seamless travel experiences for high-end tourists. The Budget’s emphasis on supporting startups through simplified regulations and increased access to funding will further enable our growth. As a startup in the luxury hospitality sector, these initiatives will strengthen our ability to innovate and offer exceptional vacation rentals in both renowned and hidden gems. We support the government’s push for local employment and the development of hyper-local tourism to tap into the rich diversity of India, boosting local economies while offering travelers unique cultural experiences. We welcome these initiatives and look forward to curating exceptional stays that align with India’s growing appeal on the global tourism map.
Pardeep Kumar Siwach, DGM- Mayfair Spring Valley Resort
The government’s renewed focus on infrastructure, connectivity, and spiritual tourism aligns with our commitment to providing world-class hospitality in one of India’s most scenic and culturally significant locations—Northeast’s Assam. The emphasis on developing top destinations and the inclusion of hotels in the harmonized infrastructure list will further strengthen the hospitality sector. Additionally, the promotion of medical tourism and the ‘Heal in India’ initiative will position India as a global wellness hub, attracting travelers seeking rejuvenation and holistic healing. We are excited about the potential tourism growth, especially with the focus on seamless travel experiences, destination-led employment generation, and a growing interest in wellness retreats and medical tourism.
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.
Krishna Rathi, Senior Country Director, India Subcontinent and MEA , Agoda
“Agoda acknowledges and celebrates India’s exciting potential as a top travel destination and is enthusiastic about the tourism plans announced in this year’s Union Budget. The investment in recent years in infrastructure enhancements and destination marketing is undeniably paying off. At Agoda, we see this reflected in a 22% year-on-year increase in inbound accommodation searches to India. With this year’s announced investments in the expansion of the UDAN scheme to connect 120 new destinations, enhanced support for homestays, and the development of top tourist destinations in collaboration with state governments, we’re hopeful that India will be able to sustain this momentum. Especially as this comes on top of continuing positive trends like visa easements and inspirational destination marketing campaigns promoting India’s diverse experiences and attractions.”
“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 planned development of 50 key tourist destinations in collaboration with state governments is a game-changer, ensuring better infrastructure, improved connectivity, and world-class amenities. This will not only elevate India’s global tourism competitiveness but also encourage private sector investment in the hospitality ecosystem.
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.”
Dharamveer Singh Chouhan, Co-founder & CEO, Zostel
Pranav Dangi, Founder and CEO, The Hosteller
“The Union Budget 2025 presents a robust vision for India’s tourism sector. The emphasis on infrastructure development, support for homestays through Mudra loans, and the inclusion of hotels in the harmonized scheme will strengthen the industry’s foundation. Additionally, developing 50 tourist destinations will definitely enhance India’s position as a global travel hub. Being in the travel and hospitality space for more than a decade, I see these initiatives as the required push for accessibility, affordability, and innovation in travel setting the stage for India to emerge as a top global destination.”
Aditya Sanghi, CEO, Hotelogix
“I welcome the government’s commitment to enhancing tourism across 50 destinations linked to Lord Buddha’s journey. The expected influx of visitors will spur the development of new hotels and infrastructure. It will significantly support India’s growing religious tourism, which is set to generate a revenue of about 59 billion by 2028 and create 140 million temporary and permanent jobs by 2030. Also, the proposed streamlined e-visa system and Visa fee waiver for tourists from select countries will promote inbound tourism as the country is getting ready to host 3%-5% more foreign tourists in 2025 vs. last year.”
Manju Sharma, Managing Director, Jaypee Hotels & Resorts
“We at Jaypee Hotels and Resorts commend the Government of India for the visionary ‘Heal in India’ initiative in the Union Budget 2025-26. This program, supported by a 20,000 crore rupee allocation by government, focuses on medical tourism and aligns perfectly with our wellness offerings at Tamaya Spa at Jaypee Greens Golf & Spa Resort, Greater Noida. Our specialized treatments, including traditional Ayurvedic treatment, varioud kind of yogas, aqua based treatments and modern wellness services, position us to serve the growing medical tourism sector. The government’s emphasis on employment-led growth, improved amenities, and infrastructure harmonization will enhance the experience for medical tourists. We are actively developing partnerships to create comprehensive wellness packages, combining medical treatments like naturopathy combining with allopathy by a registered doctor with rejuvenating spa experiences. This holistic approach sets the stage for India to become a global leader in healthcare and wellness tourism.
In addition, the government’s plans to develop the top 50 tourist destinations across the country, with states providing land for hotel development, will significantly boost the hospitality sector. The focus on improving ease of travel, giving streamlined facilities, and potential visa fee waivers for select tourist groups will incentivize travel. The special emphasis on spiritual and religious tourism, particularly destinations related to Lord Buddha, will attract more visitors. These comprehensive measures will drive India’s growth as a premier tourism destination.”
Vishal Puri, Co-Founder, Spalba
“The Union Budget 2025 has made promising steps forward for India’s startup and hospitality sectors. Heartening to see that some concrete steps have been taken to foster innovation, sustainability, and infrastructure development. Investments in tourism infrastructure and connectivity enhancements, like the development of greenfield airports and the modified UDAN scheme, should boost domestic and international travel. However, the quality of services at these airports, specifically with respect to the large number of cancellations needs to be controlled for these measures to be effective.
Dhimant Bakshi the CEO of Imagicaaworld
“In the recent Union Budget 2025, the government has made key strides to positively influence both consumption and the entertainment sector. With the introduction of changes in direct taxation, there is an increase in disposable income for middle and lower-income groups, which is expected to result in a boost in overall consumption. This shift is an encouraging signal for industries like entertainment, where a stronger consumer spending power is crucial.
However, to truly amplify the growth of outdoor and indoor recreational entertainment, including theme parks, water parks, amusement parks, and family entertainment centers (FECs), it is essential that the government reconsiders the Goods and Services Tax (GST) structure. Currently, these sectors are taxed under higher GST slabs, which can inhibit affordability and limit access, particularly for middle and lower-middle-class families who would benefit the most from these experiences.
Reducing the GST rate for these sectors to lower slabs would not only make these recreational activities more affordable but would also allow for increased participation, especially among the mass consumer base. More importantly, it would directly support mental well-being by promoting stress relief and overall happiness—two significant factors contributing to public health and productivity.
This shift in taxation aligns with the government’s goal of fostering social well-being and economic inclusion, ensuring that access to entertainment becomes a viable option for a larger segment of society. By bringing down taxes on recreational services, we can stimulate economic growth, improve happiness, and reduce stress, benefiting individuals, families, and the economy as a whole.”
Ayu Tripathi, Director, Aahana Resort
Mayank Prasad, Founder, Curated Catering by Design
The push to enhance tourism by developing 50 key destinations is a welcome move that will directly boost demand for premium catering services. Additionally, government support for hospitality training programs will help bridge the skill gap, ensuring a well-trained workforce for the sector. These measures collectively create a strong foundation for growth, allowing the catering industry to innovate, scale, and contribute more significantly to India’s evolving culinary landscape.”
Kush Kapoor, CEO, Roseate Hotels & Resorts
“The Union Budget 2025 presents a forward-thinking approach that is bound to benefit the hospitality and tourism sector significantly. The announcement of visa waivers for select foreign tourist groups will undoubtedly make India a more accessible and attractive destination for global travelers. The provision of Mudra loans to support homestays is a commendable step toward boosting grassroots tourism and encouraging local entrepreneurship. These measures will not only enhance travel experiences but also strengthen community-driven hospitality ventures.
Moreover, the tax exemption for upto Rs 12 lakh income, and the resulting relief for a large section of the population are game changers for the industry. With higher disposable incomes, people are likely to increase their spending on travel, dining, and leisure experiences. This boost in discretionary spending will drive demand across hotels, restaurants, and other tourism-related businesses. The government’s thoughtful initiatives will contribute to bolstering consumer confidence and ultimately play a significant role in the growth of the hospitality sector and the nation’s economy as a whole.”
Rajesh Ghanshani, Director of Partnerships, STAAH
We are glad to learn that the Union Budget 2025-26 presents a promising outlook for the hospitality space. The government’s focus on providing infrastructure status to hotels in select tourist destinations will undoubtedly ease access to financial resources and enable much-needed development in key regions. Additionally, the introduction of initiatives like the promotion of medical tourism and the provision of Mudra loans for homestays will create avenues for rural tourism within the hospitality sector. This budget aligns well with the industry’s need for support in expanding its reach, fostering local businesses, and driving sustainable growth in 50 select destinations. With these measures, we look forward to seeing a more vibrant hospitality ecosystem that will benefit both businesses and the communities they serve.
Sanjana Desai, Executive Director of Mother’s Recipe
“The Union Budget 2025-26 outlines a progressive vision for the food processing industry, particularly in strengthening MSME support, export growth and agricultural innovation. The introduction of a National Institute of Food Technology and expanded credit facilities for micro and small enterprises will empower businesses like ours to enhance efficiency, foster innovation and scale globally.
With an increased focus on agri-processing and improved access to credit, this budget reinforces the government’s commitment to creating a robust ecosystem where brands rooted in authenticity like Mother’s Recipe can continue to deliver high-quality products while supporting Indian farmers and strengthening local supply chains. These efforts will further bolster India’s position as a global food supplier. At Mother’s Recipe, we are proud to bring the rich heritage of Indian flavors to over 45 countries, and these policy measures will play a vital role in making Indian cuisine more accessible and celebrated worldwide”.
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.”
Chander Mansharamani, Vice Chairperson, ICPB,
The Union Budget 2025 is a commendable step towards strengthening India’s tourism industry, with the development of 52 new destinations, improved connectivity under UDAN, and a strong focus on Buddhist, medical, and wellness tourism. These initiatives will not only enhance India’s appeal as a global travel destination but also open new avenues for the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry.
As India continues to invest in tourism infrastructure and simplify travel procedures, it is crucial to recognize the economic and social impact of the MICE sector. The industry contributes significantly to business tourism, employment generation, and overall economic growth. We at ICPB (India Convention Promotion Bureau) urge the government to prioritize the MICE industry within the tourism framework, ensuring policies and incentives that position India as a leading global MICE destination. With strategic initiatives, India has the potential to become a preferred hub for international conferences, exhibitions, and corporate events, driving long-term growth and positioning the country as a powerhouse in the global meetings industry.
Davinder Juj, General Manager, Eros Hotel,New Delhi, Nehru Place
“The provisions outlined by our esteemed Finance Minister in the Union Budget 2025 are encouraging. Her emphasis on positioning India as a spiritual destination is likely to generate increased interest among international travelers, thereby becoming a crucial driver for the growth of the travel and hospitality sectors and the broader Indian economy. The initiative to promote India as the land of Lord Buddha and Lord Ram is expected to attract Non-Resident Indians, which will promote tourism. Additionally, the focus on land acquisitions for hotel development is anticipated to draw foreign investments, further fostering growth and advancement in the sector. The reduction in visa fees to promote medical tourism is a noteworthy measure that will directly benefit hotels financially. Furthermore, an allocation of Rs 20,000 crore aimed at enhancing tourism-related employment will assist various states with prominent tourist attractions in developing infrastructure and improving connectivity. Overall the budget represents a significant impetus for attracting foreign tourists, which will, in turn, stimulate the growth of the hospitality, travel and tourism industries.”
Vidip Jatia, Managing Director, Supreme Holdings & Hospitality India Limited
The Union Budget 2025 takes a bold step toward boosting consumption-driven growth, making homeownership more attainable than ever. Increased tax incentives, housing subsidies, and enhanced credit access are set to turn dreams into reality for aspiring homeowners. The government’s strong push for infrastructure development—with higher allocations for roads, railways, and urban expansion—will not only enhance connectivity but also fuel the rise of new micro-marketsacross the country, unlocking fresh economic opportunities. This budget paves the way for a resilient, self-reliant, and growth-oriented India!
Rahul Taneja, Head of Operations, Dharana at Shillim
Key initiatives including promoting spiritual and medical tourism, along with the Heal in Indiainitiative, will be a game-changer. By collaborating with the private sector and simplifying visa norms, the budget paves the way for India to become a premier destination for holistic wellbeing, integrating Preventative Medicine, Physical Restoration, Healing Nutrition, Emotional Balance, Spiritual Harmony and Ayurveda into a unified growth strategy. This aligns perfectly with Dharana at Shillim’s holistic pathways.
The implementation of streamlined e-visa facilities and visa-fee waivers for select groups will encourage inbound travel, positioning India as a more accessible and desirable destination for global tourists.
Additionally, skill-development programs, particularly in Institutes of Hospitality Management, will equip the youth with world-class training, fostering individual growth and raising the overall standard of hospitality services. These efforts will enhance customer experiences and strengthen India’s reputation in the global travel industry.
Saurabh Gahoi, Senior Vice president of Ramee Group of hotels
“The Union Budget announcement by FM Sitharaman marks a significant milestone, driving growth while empowering citizens, particularly the middle class. A notable highlight is the emphasis on the travel and hospitality industry, which promises transformative changes.
Key measures include enhancing connectivity to major tourist destinations, offering performance-linked incentives to states for better destination management, and improving tourist amenities and cleanliness. Additionally, the introduction of streamlined e-visa facilities and visa-fee waivers for select groups is set to boost inbound travel.
Additionally, domestic and spiritual tourism is set to flourish, supported by revised income tax reforms that encourage travel within the country. A major boost comes from intensive skill-development programs, particularly in Institutes of Hospitality Management, ensuring world-class training for the youth. By prioritizing individual growth, these initiatives will lead to superior customer experiences, elevating India’s hospitality standards globally.
This budget serves as a catalyst for long-term industry growth, creating new business opportunities and employment. With a focus on infrastructure, workforce development, and seamless travel experiences, FM Sitharaman’s budget is a game-changer, strengthening India’s position as a premier travel and hospitality hub.”
Rajan Sethi , Managing Director of Bright Hospitality
“The Union Budget 2025 presents a promising roadmap for India’s hospitality and tourism sector, with a strong focus on infrastructure development, skill enhancement, and connectivity. The emphasis on developing the top 50 tourist destinations, along with streamlined visa policies and Mudra loans for homestays, will significantly boost domestic and international tourism. Initiatives like performance-linked incentives for states and skill development programs in hospitality will help elevate service standards and create new employment opportunities.
Furthermore, the expansion of the Udaan scheme and the development of Greenfield airports will enhance accessibility, making travel more seamless for tourists. At Bright Hospitality, we see these measures as a catalyst for growth, allowing us to expand our footprint and continue delivering exceptional culinary and hospitality experiences. We look forward to leveraging these opportunities to contribute to India’s evolving hospitality landscape.”
Navneet Nagpal, Princpal Consultant and Director, Spectra Hospitality Services
“This year’s Union Budget marks a significant turning point for India’s tourism sector, particularly in attracting foreigntravelerss—a segment that has long needed greater focus. The introduction of visa-free access for select countries and streamlined e-visa processes will play a crucial role in enhancing inbound tourism, positioning India as a more accessible and attractive global destination.
The announcement of 50 key destinations to be developed under the challenge mode is a transformative step. By curating world-class experiences and investing in infrastructure, India can strengthen its appeal as a premier hub for leisure, heritage, and experiential tourism. Additionally, the renewed emphasis on Buddhist Circuit tourism is a strategic move to boost footfall from Southeast Asian countries, tapping into an underutilized yet high-potential market.
Equally important is the government’s focus on skill development through IHMs and financial support for homestays via Mudra loans. These initiatives will not only elevate service standards but also create meaningful economic opportunities at the grassroots level, fostering a more inclusive tourism ecosystem.
With this renewed strategic push for foreign tourism, India’s hospitality sector is poised for accelerated growth, increased revenue generation, and a stronger presence on the global tourism map. The emphasis on public-private partnerships (PPP) and incentive-linked support for tourism infrastructure further strengthens the industry’s long-term sustainability and competitiveness.”
Kahraman Yigit, Co-founder & CEO of Olive
“The Union Budget 2025-26 recognizes tourism as a key driver of employment-led growth and extending infrastructure benefits to hotels in 50 select destinations is a welcome move. The sector anticipated infrastructure status, GST reforms, tourism incentives, and increased investment in travel infrastructure to drive growth and ease financial access. The focus on spiritual and medical tourism, visa waivers, and regional connectivity through the UDAN scheme will further boost domestic and international travel, unlocking new opportunities for the hospitality sector. At Olive by Embassy, we see these initiatives as a step toward creating a more vibrant, accessible, and investment-friendly ecosystem for hospitality in India.”
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.”
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.”
