FHRAI Urges Key Reforms in Budget 2025-26 to Boost Hospitality

FHRAI Urges Key Reforms in Budget 2025-26 to Boost Hospitality

By Nishang Narayan

Published on January 19, 2025

The Federation of Hotel & Restaurant Associations of India (FHRAI), one of the world’s largest hospitality associations, has outlined a series of reforms it hopes to see in the Union Budget 2025-26. Representing over 60,000 hotels and 500,000 restaurants nationwide, FHRAI emphasized that these changes are critical for bolstering investment, creating jobs, and driving the growth of India's hospitality and tourism sector—a significant contributor to the national economy.

Key Recommendations by FHRAI

  1. Infrastructure Status for Smaller Projects
    FHRAI proposes granting infrastructure status to hotel and convention center projects costing ₹10 crore or more. Currently, this status is limited to projects exceeding ₹200 crore for hotels and ₹300 crore for convention centers, along with a requirement for the city population to exceed one million. FHRAI highlights that these restrictions exclude smaller, tourism-rich towns, preventing their access to financing and infrastructure benefits.

    “India’s tourism sector has immense untapped potential in historically significant towns and emerging destinations,” said K Syama Raju, President of FHRAI. “Infrastructure status for smaller projects will unlock growth opportunities in these regions.”

  2. Simplified Licensing and Single-Window Clearance
    FHRAI calls for a single-window clearance system to streamline the complex and time-consuming licensing and approval processes. Simplified regulations would encourage investments and ease operations for hospitality businesses.

  3. GST Rationalization
    The association advocates for rationalizing GST rates to make India more competitive internationally. FHRAI recommends:

    • Delinking GST on restaurants from room tariffs.
    • Revising GST rates for restaurants, banquets, and events.
    • Revisiting GST’s "place of supply" rules to allow input tax credits for services sourced across states, thereby reducing operational costs.
  4. Excise and Liquor Licensing Reforms
    FHRAI emphasizes the need for simplified excise and liquor licensing processes. Drawing inspiration from the FSSAI registration system, the association suggests nominal fees and easier compliance to promote the growth of leisure and entertainment services.

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Addressing Industry Challenges

India’s hospitality sector, known for generating substantial employment and foreign exchange earnings, faces multiple challenges due to restrictive policies. FHRAI asserts that reforms in licensing, taxation, and infrastructure will enhance India’s competitiveness as a global tourism destination.

“Our hospitality and tourism sector is vital to economic growth, yet it operates under significant regulatory burdens,” Raju added. “Budget 2025-26 presents an opportunity for the government to align policies with industry needs, fostering sustainable growth and positioning India as a leader in global tourism.”

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Vision 2047: A $1 Trillion Tourism Economy

By addressing these critical reforms, FHRAI believes India can advance its vision of becoming a $1 trillion tourism economy by 2047. Simplifying regulations, fostering investments, and reducing operational barriers will create jobs, increase foreign exchange earnings, and drive the sector's long-term growth.

About FHRAI

Established in 1955, the Federation of Hotel & Restaurant Associations of India (FHRAI) is the apex body of the hospitality industry in India. Representing over 60,000 hotels and 500,000 restaurants, FHRAI serves as a voice for the sector, collaborating with government bodies and international organizations to support the growth of India’s hospitality and tourism industries.


IHCL Signs Taj Safaris Lodge in Satpura, Expands Wildlife Portfolio

IHCL Signs Taj Safaris Lodge in Satpura, Expands Wildlife Portfolio

By Hariharan U

Published on March 30, 2026

Indian Hotels Company Limited (IHCL) has announced the signing of a new Taj Safaris property in Satpura, marking a strategic expansion in India’s wildlife and eco-tourism segment. This greenfield project further strengthens IHCL’s footprint in Madhya Pradesh, where it already operates lodges across key national parks.

Commenting on the development, Suma Venkatesh, Executive Vice PresidentReal Estate & Development, IHCL, said, “India offers a significant opportunity to expand the wildlife and eco-tourism segment. The signing of Taj Safaris, Satpura reflects this potential and strengthens our presence in Madhya Pradesh.”

Developed in partnership with Sarvapratham Hospitality Private Limited, the upcoming lodge will be located approximately two hours from Bhopal Airport. Spread across 30 acres, the 20-key property will offer an immersive nature-led experience, complete with an all-day dining restaurant and bar.

Set amidst dense forests and undulating terrain, the lodge is positioned to offer curated wildlife experiences led by trained naturalists. The region, part of Satpura National Park, is known for its rich biodiversity and frequent wildlife sightings, especially during the summer months.

The park is home to species such as the Bengal tiger, leopards, sloth bears, Indian bison, along with over 300 bird species and numerous reptiles, making it a key destination for wildlife enthusiasts.

Representing the owning company, Kunal Giani, Vishal Premchandani, and Kapil Premchandani said, “We are pleased to partner with IHCL to bring Taj Safaris to Satpura. This development aligns with our vision of celebrating the region’s unique ecological character.”

With this addition, IHCL will expand its Taj Safaris portfolio in Madhya Pradesh to five lodges, including one under development, reinforcing its leadership in India’s luxury wildlife hospitality space.


Vivanta Debuts in Vrindavan, Strengthening IHCL’s Spiritual Tourism Portfolio

Vivanta Debuts in Vrindavan, Strengthening IHCL’s Spiritual Tourism Portfolio

By Hariharan U

Published on March 29, 2026

Indian Hotels Company Limited has announced the opening of Vivanta Vrindavan, marking the brand’s debut in one of India’s most revered spiritual hubs, Vrindavan. The launch reinforces IHCL’s continued focus on expanding its presence across key pilgrimage and spiritual destinations in the country.

Strategically located close to major temples and cultural landmarks, the 135-key property has been designed to offer a calm and immersive stay experience, reflecting the spiritual essence of the destination while maintaining Vivanta’s contemporary hospitality approach.

Speaking on the launch, Deepika Rao noted that spiritual destinations in India continue to witness sustained and diverse travel demand, with Vrindavan remaining central to this journey. She added that the hotel aims to deliver a stay experience rooted in the ethos of the destination.

The property features multiple dining and lifestyle offerings including Mynt, an all-day vegetarian restaurant with global and regional influences; Swirl, a lobby café; Wink, a poolside bar; and Tease, an alfresco dining space. Guests can also access wellness facilities such as a spa, fitness centre, and an open-to-sky infinity pool.

Highlighting the operational vision, Saurabh Mitra shared that the hotel has been thoughtfully designed to reflect the vibrant character of Vrindavan, with a focus on delivering meaningful and personalised guest experiences.

The opening aligns with IHCL’s broader strategy of tapping into India’s growing spiritual tourism segment, where destinations like Shri Banke Bihari Mandir and Prem Mandir continue to attract both domestic and international travellers.

With this addition, IHCL further strengthens its position in the experiential hospitality space, blending cultural authenticity with modern comfort to cater to evolving traveller preferences.


LOYA at Taj West End Bengaluru Hosts an Intimate Storytelling Afternoon

LOYA at Taj West End Bengaluru Hosts an Intimate Storytelling Afternoon

By Manu Vardhan Kannan

Published on March 29, 2026

LOYA at Taj West End, Bengaluru marked World Storytelling Day with a calm and thoughtfully curated afternoon that brought people together over stories and shared experiences.

The gathering was designed as a space for open conversations around storytelling, seen as a way to preserve meaning and capture the beauty and emotion of everyday life. Much like food, which often brings people closer, storytelling became the centre of the afternoon’s experience.

The session featured a diverse group of voices, including writer and journalist Ruth D’Souza Prabhu, wine expert and writer Ruma Singh, hospitality connoisseur Aslam Gafoor, and sensory artist Indu Antony, known for capturing the unique scents of Karnataka.

As the conversation unfolded, it became clear that despite their different backgrounds, storytelling connected them all. Rooted in Indian culture and heritage, food emerged as a shared theme, bringing together memories, perspectives, and personal journeys, reflecting what LOYA aims to celebrate.

The menu added another layer to the experience, featuring dishes with strong cultural roots and stories of their own. Guests were served selections such as Dal ki Chaat, Dahi Kraal, Gola Paratha, Tudkiya Bhaat, and Kala Moti Gucchi Pulao, each offering a glimpse into traditional flavours.

Set against the serene backdrop of Taj West End, Bengaluru, the afternoon carried a sense of quiet elegance. Conversations flowed naturally, supported by a thoughtfully planned culinary experience.

Through such initiatives, LOYA continues to create a space where food, culture, and storytelling come together in a meaningful way, offering guests an experience that goes beyond dining.

LOYA, operated by IHCL, is the brand’s flagship North Indian concept that celebrates the culinary traditions of the region. With a focus on time-honoured recipes, slow cooking methods, and heirloom ingredients, the restaurant presents flavours that are both authentic and refined. With a seating capacity of 117, LOYA at Taj West End, Bengaluru offers an experience where every detail, from the interiors to the music, is designed to reflect India’s rich food heritage while blending it with a modern touch.

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