With the Union Budget 2025 on the horizon, the travel and hospitality sectors are optimistic about government initiatives to drive growth and recovery. Industry leaders are calling for focused measures to unlock the potential of a sector that contributes 7% to India’s GDP and supports over 39 million jobs.

Yogesh Mudras, Managing Director of Informa Markets in India, highlighted the sector’s immense potential, stating, “With India projected to reach a $125 billion tourism market by FY27, targeted measures are crucial. Investments in infrastructure such as airports, roads, railways, and public transportation can enhance connectivity and accessibility for both domestic and international travellers.” He further emphasized the need for simplifying GST for hospitality and aviation, financial support for MSMEs, and streamlined visa processes to attract digital nomads.

Mudras also underscored the importance of technological advancements and sustainability in shaping the industry’s future. He suggested incentivizing smart tourism and encouraging the adoption of AI, blockchain, and IoT to enhance traveler experiences and operational efficiency. Sustainability initiatives, such as eco-friendly infrastructure and waste management, are also crucial for long-term growth.

The upcoming Mahakumbh 2025 in Prayagraj presents a unique opportunity for the sector. With a proposed budget of ₹6,990 crore, the event is expected to generate approximately ₹25,000 crore in revenue and attract around 400 million visitors. The tourism and accommodation sectors are anticipated to benefit significantly, potentially contributing ₹40,000 crore to the economy.

Ambika Saxena, Group CEO of TWH Hospitality, echoed the sentiment, emphasizing the need for increased budgetary allocation to support tourism in emerging destinations. She remarked, “Strengthening domestic tourism initiatives and introducing policies to attract international tourists will not only boost employment but also attract investments and contribute significantly to India’s GDP.”

The industry sees Budget 2025 as a pivotal moment to position India as a global tourism leader. With domestic tourism witnessing a 14.8% revenue growth and a long-term vision of establishing a $4 trillion tourism economy by 2047, stakeholders are hopeful for progressive policies and strategic investments that will ensure a thriving and sustainable future for the sector.