Union Budget 2025-26 has identified tourism as a sector for employment-led growth. In order to achieve this 50 top tourist destination will be developed in partnership with states, a budget boost of Rs. 20,000 crore to help states build infrastructure, especially at their top tourism destination, budgetry allocation of Rs. 2541 crore for Union Ministry of Tourism, three times more than Rs. 850 crore allocated in the previous budget, and more.
Presenting Budget in Parliament on Saturday, Finance Minister Nirmala Sitharaman said that facilitating employment-led growth include organizing intensive skill-development programmes for youth including hospitality management, MUDRA loans for homestays, improving ease of travel and connectivity to tourist destinations, introducing streamlined e-visa facilities and providing performance-linked incentives to states.
She said that top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode. The Budget added that land for building key infrastructure including hotels will have to be provided by states and hotels in those destinations will be included in the infrastructure HML. Minister said that emphasis on places of spiritual and religious significance will be given and there will be a special focus on destinations related to the life and times of Lord Buddha. In her speech, Sitharaman said that medical tourism and Heal in India will be promoted in partnership with the private sector along with capacity building and easier visa norms.
UDAN (Ude Desh ka Aam Naagrik), a regional airport development programme of the Government of India, has received significant attention in the current budget. So far, the scheme has operationalized 619 routes and connected 88 airports across the country. Building on this success, Union Budget 2025 – 26 envisions a revamped UDAN initiative to further enhance regional connectivity, adding 120 new destinations. Additionally, the scheme will focus on supporting helipads and smaller airports in remote, hilly, and aspirational districts, including the North Eastern region.
Welcoming the significant announcements made in the Budget, Union Minister for Civil Aviation, Ram Mohan Naidu while appreciating Budget’s focus on Connectivity and Tourism remarked, “This Budget propels us toward our vision of Viksit Bharat 2047, reinforcing the Government’s commitment to enhancing regional connectivity with the idea of ‘Ease of Travel.’ UDAN, a transformative initiative envisioned by Hon’ble Prime Minister Narendra Modi, has revolutionized air travel, making it more accessible to the middle-class. UDAN is more than just a transportation initiative; it is about bringing aspirations and opportunities closer to people. Having already enabled 1.5 crore passengers to experience affordable air travel, our target is to extend this benefit to 4 crore more in the next decade.”
The number of air passengers annually has surpassed 350 million, positioning India as the third-largest aviation market globally. Over the past ten years, domestic air passenger traffic has been growing at an annual rate of 10-12%, and the number of airports has more than doubled to 159. And we are committed to developing 50 more airports in the next 5 years. To cater to rising passenger demand in the eastern region, Greenfield airports will be facilitated in Bihar to meet the future needs of the State. These will be in addition to the expansion of the capacity of Patna airport and a brownfield airport at Bihta.
Who Said What:
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.
Manoj Chacko, MD and CEO, FLY91:
The Ude Desh ka Aam Naagrik (UDAN) scheme has been a pathbreaking initiative in enhancing regional air connectivity. Union Finance Minister Nirmala Sitharaman’s budgetary announcement to expand it to 120 new destinations marks a significant boost for India’s aviation sector.
Regional aviation has the potential to be a key driver of growth, connecting underserved cities and unlocking their economic potential. As a pure play regional airline focused on Tier 2 and Tier 3 destinations, we at FLY91 see this as a transformative step that will accelerate air travel accessibility and drive growth across India.
Lucas Ramos, Sr. Director, Travel & Membership – Asia, Pacific & India, RCI:
Budget 2025 underscores the Indian government’s commitment to positioning tourism as a key pillar of economic growth, job creation, and global engagement. By developing top destinations in partnership with states, enhancing medical tourism through the ‘Heal in India’ initiative, and introducing visa reforms, India is strengthening its appeal as a world-class travel and healthcare hub.
The inclusion of hotels in the harmonized scheme and visa waivers for select foreign tourists further reinforce a comprehensive, future-ready travel ecosystem. With strategic policy alignment and private sector collaboration, this budget paves the way for India to become a more accessible, competitive, and thriving global destination.
Dr. Sanjay Sethi, MD & CEO, Chalet Hotels Ltd:
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, include 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.
Mohak Nahta, Founder and CEO of Atlys:
The government’s commitment to developing 50 tourist destinations and prioritizing e-visas and visa fee waivers is a significant step toward strengthening India’s position as a global travel hub. Streamlining visa access has consistently been a key driver of tourism growth, and these measures will enhance inbound travel while boosting employment and local economies.
The emphasis on spiritual and medical tourism aligns with India’s unique strengths, catering to global travellers seeking immersive cultural experiences and world-class healthcare. These initiatives will not only attract more visitors but also create new opportunities for businesses in hospitality, wellness, and allied sectors, further driving economic growth.
Rajan Sethi , Managing Director, 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.
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.
Ayu Tripathi, Director, Aahana Resort:
We appreciate the government’s forward-looking vision for India’s tourism sector as outlined in the Budget FY2025-26 presented by Finance Minister Nirmala Sitharaman. The comprehensive measures announced demonstrate a clear commitment to strengthening tourism infrastructure and enhancing the overall visitor experience across the country.
The plans to develop 50 premier tourist destinations, along with the successful air connectivity to 120 new destinations, will enable an additional four crore passengers over the next 10 years to explore India, showcasing promising growth potential. The emphasis on diverse segments, including spiritual, religious, and medical tourism, suggests potential opportunities for varied tourism experiences across India.
As industry stakeholders, we welcome these developments and look forward to contributing to India’s growing hospitality, travel, and tourism landscape.
Mayank Prasad, Founder of Curated Catering by Design:
The 2025 budget brings encouraging developments for the food and beverage industry, particularly for catering and hospitality businesses. The establishment of the National Institute of Food Technology will drive innovation and skill development in food processing, benefiting the entire ecosystem.
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.
Amey Belorkar – Fund Manager – Maharashtra and Aerospace Venture Fund at IDBI Capital Markets & Securities Ltd:
The Budget has focused on strengthening India’s MSME and Startup ecosystem through enhanced credit access by way of expanded fund-of-funds (FOF) of ₹10,000 crores as well as a proposal for setting up a Deep Tech FOF. Further the investment limits for MSME classification have been increased by 2.5 times which means that businesses can now invest significantly more while still qualifying as MSMEs. Also startups are benefited with the increase in Incorporation period by 5 years.
The allocation of ₹500 crore for MRO sector and the establishment of a ₹25,000 crore corpus for shipbuilding shows India’s commitment to promote India’s self-reliance.
Additionally, India is focused to accelerate clean energy to develop at least 100 GW of nuclear power by 2047 and encourage private sector involvement. A dedicated ₹20,000 crore R&D initiative for Small Modular Reactors (SMRs) will be launched, with the goal of having at least five indigenously developed SMRs operational by 2033. The Budget also aims to create self-reliance in EV and mobile phone battery manufacturing.
Dinesh Yadav, Founder and MD of Fine Acers:
The government’s commitment to develop the top 50 tourist sites in collaboration with states is a laudable step directed toward reinforcing India’s hospitality infrastructure. The initiative, along with Mudra loans for homestays, is expected to stimulate private investments and enhance regional tourism.
Further, medical tourism and cultural attractions associated with Lord Buddha’s history will heighten diversity within India’s tourism products. With improved infrastructural support, hospitality industry investors can expect considerable growth and returns, thus making this the start of an opportune period for long-term investments in hotels, resorts, and allied services.