The Union Budget 2025 has set the stage for a transformative phase in India’s travel and tourism industry, with key initiatives focused on infrastructure development, regional connectivity, and sustainable tourism. Industry leaders have shared their perspectives on how the budget will impact various sectors of tourism and what it means for future growth.

Strengthening India's Tourism Ecosystem

Aditya Pande, Group Chief Executive Officer, InterGlobe Enterprises, sees the budget as a crucial step toward India's vision for "Viksit Bharat." He highlights the budget’s positive impact on economic growth and the tourism industry:

"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.”

Boosting Adventure Tourism and Regional Connectivity

Rama Mahendru, Country General Manager – India, Intrepid Travel, applauds the government’s focus on infrastructure growth, visa reforms, and sustainable tourism. She emphasizes the role of budgetary measures in making India more accessible to global travelers:

"It's encouraging to see the Hon'ble Finance Minister's announcements take a progressive approach, aligning with the goal of growing India's infrastructure and tourism industry. Streamlined e-visa facilities and visa-fee waivers for certain tourist groups will boost inbound tourism.

The development of the top 50 tourist destinations through state partnerships will create local employment and spread tourism across the country. Additionally, the UDAN scheme will make travel more accessible, promoting both popular and emerging destinations. These initiatives are key to strengthening India's global appeal, benefiting stakeholders and enriching the travel experience.

This budget lays the foundation for a transformative path that combines infrastructure growth, sustainable tourism, and economic dynamism, with a particular focus on boosting adventure tourism in India."

Skilling and Infrastructure: A Win for the Industry

Jyoti Mayal, Chairperson of the Tourism and Hospitality Skill Council (THSC), highlights the budget’s commitment to regional connectivity and workforce development while addressing concerns about taxation policies and international tourism promotion:

"The 2025 Union Budget lays a strong foundation for India's travel and tourism industry, with some much-needed initiatives that will shape its future. Expanding the UDAN RCS scheme to 120 destinations and targeting 4 crore travellers is a crucial step in making regional connectivity more seamless, bringing previously overlooked destinations into the tourism mainstream. Developing 50 key tourism sites in partnership with states, along with granting infrastructure status to hotels in these destinations, is a progressive move that will boost investment, create jobs, and elevate the overall travel experience.

The focus on medical tourism under the 'Heal in India' initiative, along with streamlined visa norms and private sector collaboration, is another strong push in positioning India as a global hub for wellness and healthcare tourism. Similarly, incentives such as MUDRA loans for homestays, performance-linked incentives for states, and e-visa fee waivers for select groups will support local businesses, enhance accessibility, and attract a wider spectrum of travelers.

The announcement of five National Centres of Excellence for Skilling, including dedicated support for hotel management training, is a major win for the industry. Tourism thrives on people, and ensuring our workforce is equipped with world-class skills in hospitality, digital innovation, and sustainable tourism practices will significantly enhance service standards while creating more employment opportunities.

However, given the strides being made, it is a setback that critical concerns raised by travel service providers — such as restoring GST input credit, abolishing TCS, and granting industry status to tourism for tax benefits, have not been addressed. These measures are essential for improving ease of business, boosting liquidity, and ensuring the long-term sustainability of the sector.

The ₹33 crore allocation for international tourism marketing, while a significant jump from last year's ₹3 crore, still pales in comparison to the ₹177 crore allocated for domestic tourism promotion. If we truly want to position India as a premier global travel destination, we need a stronger push in international branding and outreach.

This budget is undoubtedly a step in the right direction, reinforcing tourism's role as a key economic driver. But to truly unlock its potential, there is a need for more industry-centric reforms that provide long-term support and financial ease for businesses across the ecosystem."

Final Thoughts

The Union Budget 2025 has laid out a strategic framework for India's travel and tourism industry, with significant investments in regional connectivity, sustainable tourism, and workforce development. While industry leaders welcome these initiatives, they also emphasize the need for further reforms to enhance ease of doing business and global tourism branding. As India continues to position itself as a leading travel destination, sustained government support will be key to unlocking its full potential.

As the Union Budget 2025 concludes with major announcements across various industries, key figures from India's Food and Beverage sector share their reactions on the budget's impact on their businesses and the industry at large.

Nidhi Singh, Co-Founder, Samosa Singh

"A Prospect for Inclusivity and Sustainable Growth"

The budget takes a progressive stance in promoting sustainability and growth in multiple industries, including the food and beverage sector. Investments in education, digital literacy, and skill development will foster a resilient workforce ready to meet evolving industry demands. Strengthened supply chains, streamlined regulations, and support for rural and agricultural development will benefit businesses reliant on fresh, locally sourced ingredients.

A significant move toward financial inclusion and gender equality is the provision of tax exemptions and incentives for new businesses, particularly those led by female entrepreneurs. These initiatives lay the groundwork for long-term resilience and industry expansion. If executed effectively, the budget serves as a roadmap for a more dynamic, sustainable, and inclusive economy, positioning the F&B sector for enduring success.

Simranjeet Singh, Director, CYK Hospitalities

"Transformative Financial Reforms for the F&B and Hospitality Sectors"

The Union Budget 2025 introduces substantial financial reforms set to reshape F&B consultancy and hospitality businesses. The expansion of credit guarantee coverage will offer better financial support to startups and small enterprises, minimizing risks while fostering innovation. Additionally, financial institutions are set to play a more significant role in funding early ventures, enabling rapid scaling within the food and hospitality sectors.

A dedicated startup credit ecosystem is a game changer, particularly for first-time women entrepreneurs and businesses from SC and backward communities, increasing participation in the industry. Simplified credit access—especially with initiatives like the ₹2 crore loan scheme for women entrepreneurs—will encourage new ventures and enhance inclusivity.

The sector anticipates accelerated growth through supply chain advancements, regional cuisine promotion, and agricultural sector development. These measures are expected to propel the F&B space into a new era of expansion and sustainability.

Ankit Chona, Founder, Hocco Ice Creams

"Empowering Growth in the F&B Sector"

The Union Budget 2025 is poised to boost the F&B industry by increasing middle-class disposable income, thereby driving demand for diverse and premium food options. The establishment of the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) in Bihar is a strategic move to equip the state's youth with world-class education and skills in food technology and entrepreneurship.

Furthermore, the reduction in customs duty on essential F&B inputs will lower production costs, benefiting businesses of all sizes. These measures position the industry for sustainable growth while making high-quality food more accessible to consumers.

The Union Budget 2025 has generated significant interest in the hospitality sector, with industry leaders analyzing its potential impact. The budget introduces several strategic measures aimed at enhancing tourism infrastructure, improving accessibility, and fostering investment. Key stakeholders from the hospitality industry weigh in on these developments.

Infrastructure Boost & Global Tourism Push

Mateen Khan, Co-Founder, Monday Hotels, highlighted the government's decision to grant infrastructure status to hotels in 50 destinations, allowing them easier access to financing. This move strengthens India's position as a global tourism hub. Additionally, the focus on developing top tourist spots by upgrading infrastructure and enhancing visitor facilities is expected to attract more domestic and international travelers.

Key hospitality initiatives include:

• Standardized Service Quality: New schemes to ensure consistent hospitality standards.

• Expanded Air Connectivity: UDAN expansion to connect 120 new destinations over the next decade, boosting tourism and hospitality businesses.

• Private Sector Investment: Encouraging collaboration with private enterprises to drive industry growth.

“These initiatives reflect the government’s commitment to making India a top-tier global tourism destination while driving economic growth and job creation,” said Khan.

E-Visa Reforms & Skill Development

Pushpendra Bansal, COO, Lords Hotels & Resorts, acknowledged that while infrastructure status was granted to only 50 destinations, the broader reforms, such as streamlining the e-visa system and visa-free waivers for select countries, are expected to enhance inbound tourism. “These measures make India a more accessible and attractive destination for international travelers,” he noted.

Other significant developments include:

• Hospitality Skill Development: Government-backed programs for youth, particularly in Institutes of Hospitality Management, to create a skilled workforce and improve service standards.

• Medical & Wellness Tourism: The ‘Heal-in-India’ initiative positions India as a leading destination for affordable, high-quality healthcare services.

• State Performance Incentives: Encouraging states to improve infrastructure, cleanliness, and service quality through performance-based initiatives.

Cultural Tourism & Investment Growth

Davinder Juj, General Manager, Eros Hotel, New Delhi, praised the budget’s emphasis on positioning India as a spiritual tourism hub. Promoting India as the land of Lord Buddha and Lord Ram is expected to attract Non-Resident Indians (NRIs) and international tourists.

Key financial allocations and incentives include:

• Land Acquisition for Hotels: Facilitating foreign investments in hotel infrastructure.

• Visa Fee Reductions: Lower fees to boost medical tourism, benefiting the hospitality industry.

• Rs 20,000 Crore Allocation: Enhancing tourism-related employment by improving infrastructure and connectivity.

“These budgetary provisions create a strong foundation for attracting foreign tourists, which will ultimately drive growth in the hospitality, travel, and tourism sectors,” Juj concluded.

With these reforms, the Union Budget 2025 lays the groundwork for a robust and dynamic hospitality sector, poised for long-term growth and global recognition.