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.