February 4, 2025
The Budget 2025-26 announced the development of 50 top tourist sites in partnership with states, with land and infrastructure support from local governments
Plans to promote medical tourism under the ‘Heal in India’ initiative include private-sector collaboration and accessible visa regulations
An INR 20,000 crore allocation was announced for private sector-driven research, innovation, and a potential Deep Tech Fund of Funds
Industry leaders highlighted the need for tax breaks, viability gap funding, and holistic tourism strategies to maximise growth
The Union Budget 2025-26 has outlined several measures to boost India’s tourism sector, focusing on employment-led growth and infrastructure development. Union Finance Minister Nirmala Sitharaman announced plans to develop 50 top tourist destinations in partnership with states. State governments will provide land for key infrastructure projects, including hotels, to enhance tourism offerings.
The Budget also promotes medical tourism through the ‘Heal in India’ initiative, supported by private sector collaboration, capacity building, and streamlined visa regulations. Sitharaman allocated INR 20,000 crore for private sector-driven research, innovation, and development, with the possibility of establishing a Deep Tech Fund of Funds to catalyse start-ups.
Industry stakeholders welcomed the focus on healthcare tourism but called for further incentives. Experts believe the upgraded healthcare facilities will position India as a global healthcare destination. However, he suggested tax breaks for hotels and eco-friendly tourism could further boost revenue.
The sector’s long-standing demand for industry status remains unmet and expanded viability gap funding is needed to encourage private sector involvement in tourism projects, especially in underutilised regions. Experts also highlighted India’s potential as a holistic healthcare destination, integrating modern medical services with wellness tourism.
The government’s continued focus on spiritual tourism includes destinations linked to the life and times of Lord Buddha. Skill development programmes in hospitality, Mudra loans for homestays, and performance-linked incentives for states are key initiatives to support the sector. Enhanced e-visa facilities and visa-fee waivers for select groups are also in the pipeline.
Various experts also praised the Budget’s emphasis on connectivity and infrastructure. He noted that developing 50 key destinations through state partnerships will bolster India’s global tourism footprint and create employment opportunities. Expanding air connectivity through 120 new routes under the UDAN initiative and greenfield airport development will position tier-2 and tier-3 cities as emerging tourist and business hubs.
The Economic Survey 2024-25 underscored the significance of the Swadesh Darshan Scheme 2.0, which aims to develop sustainable and responsible tourism destinations. These initiatives and policy reforms are expected to strengthen India’s travel and tourism sector while fostering employment-led growth.
Source: Economic Times