Key Budget 2025 Announcements for the Tourism and Hospitality Industry

Key Budget 2025 Announcements for the Tourism and Hospitality Industry

By Manu Vardhan Kannan

Published on February 1, 2025

The Union Budget 2025 has been presented today, The government of India has unveiled several key initiatives that will shape the future of Hospitality and Tourism industries.

One of the standout announcements is the development of the top 50 tourism sites across the country, which will be taken up in a challenge mode with the states. Hotels under this initiative will be included in the harmonized infrastructure list, providing them with necessary resources and support.

In a move to foster employment-led growth, the government plans to launch intensive skill development programs in hospitality management institutes. Along with this, Mudra Loans will be available for homestays, and Performance Linked Incentives (PLIs) will be given to states for effective destination management, including marketing efforts and the provision of tourist amenities. E-visa facilities will also be extended to certain tourist categories, streamlining the travel process for international visitors.

Additionally, medical tourism is set to receive a significant push under the “Heal in India” program. In partnership with the private sector, the government will work towards attracting international patients seeking quality and affordable medical treatment in India. This will be facilitated by improved visa norms and enhanced capacity in the healthcare sector.

The UDAAN regional connectivity scheme, which has already brought air travel closer to the middle class by enabling 1.5 crore people to travel, will see further improvements. A modified version of this scheme will be rolled out to enhance regional connectivity to 120 new destinations, aiming to carry 4 crore passengers in the next decade. The scheme will also support the development of helipads and smaller airports in hilly and underserved regions.

Further development will take place in Bihar with the facilitation of Greenfield airports to meet the growing travel demand. This will complement the ongoing expansion of Patna airport, further boosting connectivity in the state.

In another major move, the government has proposed an extension for startups, allowing a 5-year extension on the period of incorporation, with the new deadline set for 2030 and It’ll shape up the future of food and beverage industry 

On the personal finance front, Finance Minister Nirmala Sitharaman announced a relief for taxpayers. The income tax limit for tax-free individuals will be raised from INR 7 lakh to INR 12 lakh, meaning those earning up to INR 12 lakh will not have to pay any income tax starting from the next financial year  and this move will gives financial benefits to the small players of food and beverage industry

These announcements showcase the government's dedication to elevating India as a world-class tourism destination and a prominent player in the global medical tourism market, with significant efforts being made to enhance infrastructure and drive growth in these sectors.


New IHCL SeleQtions Hotel Brings Spiritual Hospitality to Ayodhya

New IHCL SeleQtions Hotel Brings Spiritual Hospitality to Ayodhya

By Manu Vardhan Kannan

Published on June 16, 2026

India’s largest hospitality company, IHCL, has announced the opening of Ayodhyām, Ayodhya – IHCL SeleQtions, strengthening its presence in one of India’s most significant spiritual destinations.

As spiritual tourism continues to grow across the country, Ayodhya has emerged as a key destination attracting pilgrims and leisure travellers alike. The newly opened hotel is designed to offer guests an experience that reflects the city’s cultural and spiritual essence while meeting the expectations of modern travellers.

Commenting on the opening, Deepika Rao, Executive Vice President – New Businesses & Hotel Openings, IHCL, said, “Spiritual tourism in India continues to see strong momentum, with Ayodhya being among the country’s most revered destinations. Ayodhyām, Ayodhya – IHCL SeleQtions is positioned to meet this demand, offering a stay experience that reflects the city’s spiritual significance while catering to the evolving expectations of today’s traveller.”

The 162-key property draws inspiration from Ayodhya’s rich heritage and spiritual character. Featuring spacious and naturally lit interiors, the hotel offers a peaceful atmosphere within a contemporary setting.

Guests can dine at Divyam, the hotel's signature restaurant, which showcases a thoughtfully curated menu inspired by regional culinary traditions. The dining experience focuses on authentic flavours and local ingredients, reflecting the gastronomic heritage of the region.

The hotel also features a fitness centre, an outdoor swimming pool, and versatile event spaces suited for weddings, conferences, and social gatherings.

Expressing her views on the partnership, Shilpa Shorewala, Owner, said, “We are pleased to partner with IHCL and bring Ayodhyām, Ayodhya – IHCL SeleQtions to life with an experience that reflects the city’s deep spiritual character.”

Brij Rajpali, General Manager, Ayodhyām, Ayodhya – IHCL SeleQtions, added, “Ayodhyām has been designed to offer a stay that is calm and closely connected to its surroundings. We look forward to welcoming guests to this spiritual abode.”

The hotel also offers a range of curated experiences inspired by Ayodhya’s living traditions. These include morning aartis, storytelling sessions led by kathavachaks, sattvic dining experiences, guided spiritual trails, and visits to the sacred Sarayu river, allowing guests to engage more deeply with the destination’s cultural and spiritual heritage.


FSSAI Urges States to Fill Vacancies and Strengthen Food Safety Enforcement

FSSAI Urges States to Fill Vacancies and Strengthen Food Safety Enforcement

By Manu Vardhan Kannan

Published on June 15, 2026

The Food Safety and Standards Authority of India (FSSAI) has asked states and Union Territories to expedite the recruitment of key food safety personnel and strengthen enforcement activities to ensure safer food for consumers across the country.

The directive was issued by FSSAI CEO Rajit Punhani during the 50th meeting of the Central Advisory Committee (CAC) held in Shimla. He urged states and UTs to fill existing vacancies for Food Safety Officers (FSOs) and Designated Officers (DOs) at the earliest to improve regulatory capacity and enhance food safety enforcement at the ground level.

Highlighting the importance of effective enforcement, Punhani stressed that strong regulatory action remains essential for safeguarding consumer health. He also directed states and UTs to increase food sampling, strengthen surveillance activities, and scale up enforcement efforts across their respective jurisdictions.

In addition to enforcement, the CEO called for greater public awareness initiatives and stronger outreach programmes to improve food safety awareness among consumers and stakeholders.

During the meeting, the committee reviewed the performance of states and UTs across several key parameters, including recruitment progress, functioning of state and district advisory committees, food safety inspections, surveillance sampling, regulatory reporting, and timely resolution of consumer complaints. States and UTs were advised to address gaps identified during the review and work towards achieving prescribed targets within stipulated timelines.

The committee also discussed ways to improve food recall systems through the recently operationalised Food Recall Module available on FoSCoS. States and UTs were encouraged to sensitise Food Business Operators (FBOs) about timely reporting of recalls and ensure proper implementation of recall procedures for unsafe food products.

Other important topics included reducing pendency in licensing and registration applications, improving regulatory compliance among food businesses, and strengthening the implementation of labelling requirements for nutraceuticals and health supplements.

The meeting further examined measures to address misleading claims in food advertisements and promote the adoption of sustainable packaging practices within the food sector.

Through these initiatives, FSSAI aims to strengthen food safety governance, improve compliance levels, and ensure greater consumer protection across India's food ecosystem.


Tata Group Asks Air India to Prioritise Cost Control Amid Rising Losses

Tata Group Asks Air India to Prioritise Cost Control Amid Rising Losses

By Manu Vardhan Kannan

Published on June 15, 2026

Air India is reassessing its growth plans after Tata Group reportedly instructed the airline to focus on reducing losses and improving operational stability. The move marks a shift from the carrier's aggressive expansion strategy that had been underway since Tata Group took ownership of the airline in 2022.

According to people familiar with the matter, Air India is exploring several cost-control measures, including discussions with Airbus and Boeing to defer deliveries of aircraft from its large order book. Delaying aircraft deliveries could help the airline postpone substantial payments that are typically due when planes are handed over.

The airline is also reviewing its plans to launch services on new domestic and international routes. Expansion at certain airports, including the upcoming Noida International Airport, may be delayed as part of the broader strategy to manage costs and improve financial performance.

The change in approach comes after a challenging period for the airline. A fatal crash last year, airspace restrictions following Pakistan's closure of its airspace to Indian carriers, and disruptions linked to the conflict in Iran have all added pressure on operations. These developments have resulted in longer flight routes, higher fuel expenses, and increased operating costs.

Air India has also faced challenges from the weak Indian rupee, which has increased expenses as a significant portion of airline costs are denominated in US dollars.

The airline's financial performance remains a concern. Sources indicate that Air India has accumulated losses of more than ₹55,000 crore since 2022, while annual losses have reportedly reached around $3 billion (approximately ₹28,500 crore). The issue has become a key area of focus for the board of Tata Trusts, which controls Tata Sons, the majority owner of Air India.

Despite these challenges, Air India has continued to pursue one of the largest fleet modernisation programmes in the aviation industry. Between 2023 and 2025, the airline placed orders for around 600 aircraft from Airbus and Boeing as part of its long-term growth strategy. Most of these aircraft are expected to be delivered during 2027 and 2028.

Responding to reports, an Air India spokesperson described the claims as highly speculative and stated that the airline remains committed to fleet modernisation and its long-term transformation programme. Tata Group and Airbus did not comment on the matter, while Boeing declined to provide a statement.

The airline currently operates both the full-service Air India brand and low-cost carrier Air India Express. While passenger demand and revenues have benefited from India's growing economy and rising travel demand, the airline continues to face the challenge of balancing expansion with financial sustainability.

Singapore Airlines, which acquired a 25.1% stake in Air India in 2024, remains a strategic partner as the airline continues its transformation journey.

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