ICRA Highlights Key Expectations for Indian Hospitality Sector in Union Budget 2025-26

ICRA Highlights Key Expectations for Indian Hospitality Sector in Union Budget 2025-26

By Manu Vardhan Kannan

Published on January 15, 2025

With the Union Budget 2025-26 on the horizon, ICRA Limited sheds light on the critical expectations for the Indian hospitality sector, emphasizing its pivotal role in economic growth.

According to Mr. Shamsher Dewan, Senior Vice President and Group Head, Corporate Ratings, ICRA Limited, “Post Covid, the Indian hospitality industry recovered, and the demand rebounded sharply in recent years. Factors like increasing domestic tourism, business travel, growing demand from MICE (Meetings, Incentives, Conferences, Exhibitions) and weddings, and enhanced connectivity to tier-2/3 cities supported the growth for hoteliers.”

ICRA underscores the importance of targeted measures in the upcoming budget to sustain and accelerate this growth trajectory. Key focus areas include:

  • Tourism and Infrastructure Investments: Enhanced support for tourism initiatives and infrastructure development to cater to growing demand.

  • Ease of Doing Business: Simplified processes and policies to encourage industry growth.

  • Enhanced Connectivity and Accessibility: Strengthening transportation networks, especially to tier-2 and tier-3 cities.

  • Tax Rationalization: A more balanced tax structure to improve the industry's operational efficiency.

  • Favorable Financing Policies: Policy frameworks that facilitate favorable financing terms, aiding inventory addition to meet rising demand.

With supply growth struggling to match the increasing demand, ICRA stresses the need for innovative and supportive policy initiatives. These measures can bolster the sector’s ability to cater to the surging interest in domestic and international tourism, ultimately contributing to India’s economic development.

As stakeholders eagerly await the Union Budget 2025-26, the hospitality industry remains optimistic about policies that will further drive its robust recovery and expansion.


Bengal’s Heritage Conservation Perspective Highlights at Pravasi Rajasthani Diwas

Bengal’s Heritage Conservation Perspective Highlights at Pravasi Rajasthani Diwas

By Hariharan U

Published on December 22, 2025

Heritage-led development took center stage at Pravasi Rajasthani Diwas, where Mr. Sandip Nowlakha, Vice President of the Murshidabad Heritage Development Society, addressed delegates on “Havelis to Heritage: Unveiling the Legacy of Rajasthan’s Pioneering Entrepreneurs.” Drawing parallels between Rajasthan’s iconic havelis and Bengal’s historic homes, he highlighted the national relevance of preserving heritage while fostering economic sustainability.

Rajasthan has over a million havelis, many left neglected as owners migrated to cities like Kolkata. Bengal faces similar challenges with its rajbaris, kothis, and merchant houses. Mr. Nowlakha advocated adaptive reuse, transforming historic homes into museums of family history that preserve architecture as well as the entrepreneurial legacies of generations.

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Citing successful restorations in Murshidabad, including Kathgola Palace, Bari Kothi, Jagat Seth’s House, and Nashipur Rajbari, he emphasised the economic potential of conservation-led development. Kathgola Palace alone attracts 1.2 million visitors annually, while Jagat Seth’s House and Nashipur Rajbari each welcome around 1 million visitors yearly. “Heritage conservation can generate sustained visitor interest, local employment, and economic activity without compromising historical integrity,” he noted.

Mr. Nowlakha stressed that Rajasthan’s havelis, as historical repositories, require sensitive interpretation rather than structural reinvention. With contemporary conservation practices and curated narratives, these properties can become living history spaces, encouraging cultural exchange and tourism while keeping shared heritage alive for future generations.

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Pravasi Rajasthani Diwas also featured sessions on investment opportunities in education, healthcare, and tourism, highlighting the strategic role of cultural assets in development. The event saw participation from dignitaries including Shri Bhajan Lal Sharma, Chief Minister of Rajasthan; Shri Gajendra Singh Shekhawat, Union Minister of Culture; Smt. Diya Kumari, Deputy Chief Minister of Rajasthan; and Mr. Sundeep Bhutoria, Managing Trustee, Prabha Khaitan Foundation, Kolkata.


IHCL Expands Presence in Tamil Nadu with Signing of Vivanta Hotel in Vellore

IHCL Expands Presence in Tamil Nadu with Signing of Vivanta Hotel in Vellore

By Manu Vardhan Kannan

Published on December 22, 2025

The Indian Hotels Company Limited (IHCL), India’s largest hospitality company, has announced the signing of a Vivanta hotel in Vellore, Tamil Nadu. This greenfield development marks IHCL’s entry into Vellore and further strengthens its presence in the state.

Commenting on the signing, Ms. Suma Venkatesh, Executive Vice PresidentReal Estate & Development, IHCL, said, “Vellore is an established education and industrial hub with improving connectivity and infrastructure, making it a promising hospitality market. Its inclusion in the Government of India’s Smart Cities Mission reflects the city’s growth potential. We are delighted to partner with Mr. Baskaran on this project.”

The upcoming Vivanta Vellore will feature 100 keys and reflect the brand’s contemporary design philosophy with vibrant and modern spaces. The hotel will house an all-day dining restaurant, a stylish bar and a pool lounge bar. It will also offer multiple meeting rooms and a banquet hall spanning over 2,500 sq. ft., catering to business meetings and social events. Recreational facilities at the hotel will include a well-equipped gym and a swimming pool.

Mr. Baskaran of BBK Group said, “We are pleased to collaborate with IHCL to introduce the Vivanta brand to Vellore. This hotel will add to the city’s growing hospitality landscape and create a landmark destination for travellers.”

Vellore is known for its strong cultural, educational and healthcare ecosystem and is home to prominent attractions such as the Golden Temple at Sripuram and the historic Vellore Fort. The city also serves as an important education and medical hub, while neighbouring districts contribute to a thriving industrial belt with clusters in leather, automotive components and engineering.

About the Owning Company

Founded in 1994 by Mr. Baskaran, BBK Group began with the establishment of the BBK Shoes factory and has grown into a leading vertically integrated leather footwear and goods manufacturer. The group operates eight advanced manufacturing facilities across Tamil Nadu and has recently expanded into renewable energy through wind and solar power projects, aligning with its long-term sustainability goals.


PM Narendra Modi Inaugurates New Guwahati Airport Terminal, Calls It a Boost for Assam

PM Narendra Modi Inaugurates New Guwahati Airport Terminal, Calls It a Boost for Assam

By Hariharan U

Published on December 22, 2025

Prime Minister Narendra Modi on Saturday inaugurated the new terminal building of Lokapriya Gopinath Bardoloi International Airport in Guwahati, marking a significant milestone for Assam’s infrastructure development and the Northeast’s connectivity push.

Ahead of the inauguration, the Prime Minister shared striking visuals of the upgraded facility on social media, describing the project as a major boost to the region. “Increased capacity means better Ease of Living and a boost for commerce as well as tourism,” PM Modi said in a post on X, adding that he would inaugurate the terminal in the afternoon after arriving in Guwahati.

As per PTI, the integrated terminal building spans nearly 1.4 lakh square metres and has been designed to handle up to 1.3 crore passengers annually. The new terminal is being seen as a transformative step that will strengthen Assam’s air connectivity while supporting economic growth, trade and global engagement.

The Guwahati airport terminal is also notable for being India’s first nature-themed airport terminal, built around the concept of Bamboo Orchids.” The design draws inspiration from Assam’s biodiversity and cultural heritage, using around 140 metric tonnes of locally sourced Northeast bamboo.

The architecture features Kaziranga-inspired green landscapes, traditional japi motifs, the iconic rhino symbol and 57 orchid-inspired columns modelled on the kopou flower, creating a strong sense of regional identity within a modern aviation hub.

One of the terminal’s most distinctive elements is the “Sky Forest,” which houses nearly one lakh indigenous plants. This space is designed to offer passengers a forest-like, immersive experience upon arrival and departure, blending sustainability with aesthetics.

Passenger convenience has also been upgraded through the introduction of advanced digital and operational systems. These include full-body scanners for quicker security checks, DigiYatra-enabled contactless travel, automated baggage handling, fast-track immigration, and AI-driven airport operations to ensure smoother, safer and more efficient passenger movement.

With its expanded capacity, sustainable design and modern technology, the new Guwahati airport terminal is expected to play a key role in positioning Assam as a major gateway to the Northeast, while supporting tourism growth and regional development in the years ahead

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