The Union Budget 2025 has introduced key measures that promise growth across the hospitality, food & beverage, and startup sectors. Industry leaders see these developments as game-changing, driving innovation, infrastructure enhancement, and workforce development.

Strengthening the Catering Industry

Mayank Prasad, Founder of Curated Catering by Design, sees the budget as a positive step for the catering and hospitality sector.

"The establishment of the National Institute of Food Technology will drive innovation and skill development in food processing, benefiting the entire ecosystem. The push to enhance tourism by developing 50 key destinations is a welcome move that will directly boost demand for premium catering services. Additionally, government support for hospitality training programs will help bridge the skill gap, ensuring a well-trained workforce for the sector," he said. With these measures, the catering industry is poised to scale, innovate, and contribute significantly to India's evolving culinary landscape.

A Vision for Holistic Tourism Growth

Rahul Taneja, Head of Operations at Dharana at Shillim, highlighted the transformative impact of the budget on tourism.

"A standout feature is its strong emphasis on the travel and hospitality industry, with well-structured measures to boost both domestic and international tourism. Initiatives like promoting spiritual and medical tourism, along with the Heal in India initiative, will be game-changers," he noted. The budget’s collaboration with the private sector and simplified visa norms aim to position India as a top destination for holistic well-being, integrating Preventative Medicine, Healing Nutrition, Ayurveda, and more. Additionally, investments in skill development within the hospitality sector will enhance service quality, elevating India's global tourism reputation.

A Strong Push for Startups and Infrastructure

Vishal Puri, Co-Founder of Spalba, praised the budget’s steps toward fostering innovation and sustainability.
"Investments in tourism infrastructure and connectivity enhancements, like the development of greenfield airports and the modified UDAN scheme, should boost domestic and international travel. However, the quality of services at these airports, specifically regarding cancellations, needs to be controlled for these measures to be effective," he pointed out. The inclusion of hotels in the harmonized tourism infrastructure scheme and the ₹1 lakh crore Urban Challenge Fund are also expected to transform urban tourism experiences. Additionally, startups will benefit from an extended tax holiday, simplified compliance, and increased funding through the ₹10,000 crore Startup India Fund, driving digital innovations and sustainability.

With a strong focus on tourism, catering, and startups, the Union Budget 2025 sets the stage for accelerated growth, making India a more attractive and accessible destination for travelers and entrepreneurs alike.

The Union Budget 2025 has set the stage for significant transformation in India's hospitality and tourism sector. With a strong emphasis on infrastructure, connectivity, and investment-driven growth, industry leaders believe these measures will bring long-term benefits, attracting both domestic and international travelers.

One of the key highlights is the modified Udaan scheme, which will introduce 120 new destinations, strengthening regional connectivity and boosting tourism in emerging hotspots. Hotels, resorts, and homestays in lesser-explored regions are expected to see an increase in footfall, fostering further development and investment.

Ambika Saxena, CEO of TWH Hospitality, emphasized how the expanded Udaan scheme will open doors for new destinations, benefiting hotels and resorts. She stated:

"This year, the government has presented a well-balanced and growth-oriented budget, specifically supporting the tourism and hospitality sectors. The modified Udaan scheme will open doors for the hospitality sector by bringing new tourist destinations into the spotlight. Hotels, resorts, and homestays in unexplored regions will see a surge in demand, encouraging further investment and development. With the government's push for connectivity and including new 120 destinations, we expect a stronger pipeline in the hospitality sector, catering to both business and leisure travelers in emerging tourism hotspots."

The expansion of tourism-friendly policies is another key highlight, with a focus on domestic and spiritual tourism. Measures such as streamlined e-visa facilities, visa fee waivers, and performance-linked incentives for states will improve tourist amenities and cleanliness, ultimately enhancing the travel experience.

Yogesh Mudras, Managing Director of Informa Markets in India, sees this as a landmark initiative for India's tourism industry:

"The Union Budget 2025 presented a progressive roadmap that prioritizes infrastructure, economic growth, and regional connectivity. The government's continued emphasis on regional development and tourism-friendly policies will have a far-reaching impact on multiple sectors, including travel and tourism. The modified Udaan scheme, in particular, is a landmark initiative that will strengthen India's position as a global tourism hub. The scheme has already benefited 1.5 crore middle-class travelers, and the expansion of the scheme to include 120 new destinations is a game-changer for regional connectivity. With increased accessibility, we anticipate a surge in domestic tourism and business travel, providing a major boost to the tourism industry."

The government has also placed a strong focus on homestays and small-scale tourism businesses by introducing Mudra loans to empower local entrepreneurs. This move is expected to encourage more people to invest in the hospitality space, promoting sustainable and community-driven tourism.

Pranav Dangi, Founder and CEO of The Hosteller, believes these steps will help India emerge as a top global destination:

"The Union Budget 2025 presents a robust vision for India's tourism sector. The emphasis on infrastructure development, support for homestays through Mudra loans, and the inclusion of hotels in the harmonized scheme will strengthen the industry's foundation. Additionally, developing 50 tourist destinations will definitely enhance India's position as a global travel hub. Being in the travel and hospitality space for more than a decade, I see these initiatives as the required push for accessibility, affordability, and innovation in travel, setting the stage for India to emerge as a top global destination."

Another critical aspect of the budget is skill development and workforce training in hospitality. The government aims to provide intensive training programs through Institutes of Hospitality Management, ensuring world-class education and better employment opportunities in the sector.

Saurabh Gahoi, Senior Vice President of Ramee Group of Hotels, sees this as a transformative step for the industry:

"The Union Budget announcement by FM Sitharaman marks a significant milestone, driving growth while empowering citizens, particularly the middle class. A notable highlight is the emphasis on the travel and hospitality industry, which promises transformative changes.
Key measures include enhancing connectivity to major tourist destinations, offering performance-linked incentives to states for better destination management, and improving tourist amenities and cleanliness. Additionally, the introduction of streamlined e-visa facilities and visa-fee waivers for select groups is set to boost inbound travel.
Domestic and spiritual tourism is set to flourish, supported by revised income tax reforms that encourage travel within the country. A major boost comes from intensive skill-development programs, particularly in Institutes of Hospitality Management, ensuring world-class training for the youth. By prioritizing individual growth, these initiatives will lead to superior customer experiences, elevating India's hospitality standards globally.
This budget serves as a catalyst for long-term industry growth, creating new business opportunities and employment. With a focus on infrastructure, workforce development, and seamless travel experiences, FM Sitharaman's budget is a game-changer, strengthening India's position as a premier travel and hospitality hub."

Conclusion

With infrastructure development, connectivity expansion, and workforce training at its core, the Union Budget 2025 is a major step forward for India's hospitality and tourism industry. By enhancing accessibility, supporting small businesses, and improving the ease of travel, the government has laid the foundation for a vibrant, competitive, and globally recognized tourism sector. These policies are expected to create new business opportunities, attract investments, and establish India as a premier travel destination in the years to come.

The food and beverage industry has welcomed the budget’s emphasis on economic expansion, job creation, and infrastructure development. Industry experts believe these measures will drive growth, create opportunities for MSMEs, and foster innovation.

Aayush Madhusudan Agrawal, Founder & MD shared his perspective on how the budget supports the restaurant and hospitality industry.

"The Union Budget 2025-26 lays a strong foundation for transformative growth, particularly for the restaurant and hospitality industry and the real estate sector. The government's focus on increasing disposable income through tax relief and job creation is a significant boost for our sector. We anticipate increased consumer spending, leading to higher foot traffic in restaurants, more frequent dining out, and sustained demand for food delivery services. The budget's emphasis on urban redevelopment, including the ₹1 lakh crore Urban Challenge Fund and enhanced infrastructure spending, creates exciting opportunities for mixed-use developments and real estate projects. Additionally, the allocation of ₹1.5 trillion fiscal support for MSMEs is expected to drive capacity expansion, creating a ripple effect that will further fuel demand for industrial real estate. The support for Tier-2 cities and the focus on urban innovation will not only stimulate real estate growth beyond the metros but also bolster homebuyer confidence and encourage further expansion. From gig worker welfare to the development of smart, sustainable cities, this budget's holistic approach will drive India's next wave of economic progress, creating new avenues for investment, innovation, and growth across our industries." 

Teja Chekuri, Founder of Full Stack Ventures, emphasized the impact of agriculture-focused initiatives on the food industry.

"A landmark budget for India’s food future!

The focus on agriculture as the first engine of growth, the Dhan Dhanya Krishi Yojana, and procurement support for pulses signal a bold step toward empowering our farmers and bringing nutrient-rich, traditional grains back to our tables. The creation of Agri districts and the Bihar Makhana Board will help preserve and promote regional food heritage while strengthening rural economies. As consumers demand transparency and healthier choices, this budget sets the stage for a true farm-to-table revolution. The government's commitment to self-sufficiency in pulses and investment in food technology and entrepreneurship will not only nourish our nation but also inspire the next generation to rediscover the grains and recipes of our ancestors."

A win for farmers, a win for food innovation, and a win for India’s health.

Saurabh Wadkar, Founder of Rooted, praised the budget's focus on food security and MSME support while also pointing out areas needing improvement.

" The Union Budget 2025-26 reflects a bold step towards shaping India’s future by strengthening agriculture, MSMEs, and entrepreneurship. The Dhan Dhanya Krishi Yojana and the focus on self-sufficiency in pulses will stabilize supply chains, ensure fair pricing for farmers, and build a more resilient food ecosystem. With consumers becoming more conscious about what they eat, the emphasis on nutrition, value-added agriculture, and food security, signals a forward-thinking approach. Establishing the National Institute of Food Technology is a step in the right direction—it will not only boost food innovation and processing but also cultivate the next generation of entrepreneurs and skilled professionals in this space.
 
The government’s push for expanding credit access—especially for MSMEs, first-time entrepreneurs, and women-led businesses—is commendable. However, access to capital is just one part of the equation. The real impact will be seen in how seamlessly and efficiently these funds reach businesses without bureaucratic roadblocks. The introduction of Bharat Trade Net for trade documentation and financing solutions could be a game-changer if executed well, further simplifying the ease of doing business in India.
 
Beyond policy, this budget acknowledges the evolving aspirations of a modern India. The expansion of UDAN, tourism incentives, and infrastructure investment will unlock new opportunities across hospitality, logistics, and regional trade. This will create a ripple effect on consumption patterns, employment, and GDP growth—a shift that visionary entrepreneurs must prepare for.
 
That said, taxation remains an area that requires urgent reform. High GST rates on processed foods and compliance challenges continue to slow down growth. This budget lays the foundation, but the real test lies in execution. India is on the brink of an entrepreneurial revolution—the right policies, if implemented well, can propel businesses into an era of unprecedented growth."

Conclusion

The Union Budget 2025-26 has set the stage for economic transformation by addressing key challenges and unlocking new growth avenues across industries. While leaders across the travel, hospitality, and food and beverage sectors have welcomed the initiatives, they also emphasize the need for continued reforms and strategic implementation to maximize their impact. With a strong focus on infrastructure, ease of doing business, and sector-specific incentives, this budget lays the foundation for a more dynamic and competitive India.