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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.
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Published on February 4, 2026
Luxury villa hospitality platform ELIVAAS has scaled its operational portfolio to approximately 620 villas within two years of launch, positioning itself among the fastest-growing organised players in India’s villa hospitality segment.
Since its inception, ELIVAAS has hosted over 3 lakh guests, with guest volumes growing 2.7 times between December 2023 and December 2025. This growth has been largely driven by increasing demand for group travel, private celebrations, and corporate offsites, as travellers seek exclusive and experience-led accommodation formats.
Despite rapid expansion, ELIVAAS has maintained stable operational performance. Around 95 percent of guest stays have received five-star ratings, reflecting consistency across service delivery, property management, and overall guest experience. The company attributes this performance to a balanced approach towards scaling supply while strengthening operational processes.
Commenting on the growth journey, Ritwik Khare, Founder and CEO, ELIVAAS, said, “Scaling supply without compromising operations is the biggest challenge in villa hospitality. For a sustainable business, the three wheels of supply, demand, and guest experience and operations have to scale at the same pace. Guest feedback at this level gives us confidence as we move into the next phase of growth.”
ELIVAAS currently has a strong presence across North and West India, which continue to account for the majority of bookings. Alongside geographical expansion, the platform has focused on enhancing experience-led offerings across its portfolio. Most villas support services such as private chefs, spa treatments, customised décor, live entertainment, and concierge-led experiences, catering to leisure travellers as well as event-led stays.
Looking ahead, ELIVAAS plans to more than double its portfolio to over 1,200 villas in 2026. The expansion will be supported by sustained demand and deeper penetration across key leisure destinations and event-driven markets, reinforcing the brand’s long-term growth strategy in India’s evolving luxury hospitality landscape.
The Union Budget 2026-27 has drawn varied responses from hospitality professionals and industry leaders, reflecting a balance between short-term operational challenges and long-term structural benefits. While the Budget signals continued support for infrastructure and domestic value chains, experts note that certain cost-related measures may impact pricing and margins within the hospitality ecosystem.
Anuj Mittal, Founder of Paprika Park, described the Budget as having a mixed impact on the food and beverage sector. He noted that select duty reductions could support domestic production and processing, while other measures may increase operating costs for eateries and cafes.
“Indian Union Budget 2026-27 had a mixed impact on the food & beverage (F&B) sector: some production inputs and processing equipment became cheaper due to duty reductions (e.g., seafood processing inputs and microwave parts), supporting domestic value chains, while costs rose for others most notably commercial LPG for kitchens and imported coffee machines now facing higher duties which could push up prices for cafes and eateries. The Budget also continues to support broader agri-food infrastructure and supply-chain improvements, benefiting long-term F&B competitiveness.”
From a manufacturing and allied industry perspective, Suraj Mehta, Chief Strategy Officer at HNGIL, highlighted the positive implications of tariff rationalisation for India’s glass manufacturing sector, especially in the export market.
“This tariff cut from 50% to 18% is a game-changer for India's glass manufacturing sector, particularly for container glass exports to the US, where demand in food & beverage, pharmaceuticals, and cosmetics packaging is robust. It levels the playing field against subsidized imports from other countries like China, potentially increasing our export volumes by 20-30% in the coming years.”
He further added that the move could encourage capacity utilisation, sustainable investments, and job creation across manufacturing hubs, aligning with India’s broader export ambitions.
Taken together, the reactions suggest that while hospitality and allied sectors may face selective cost pressures in the near term, the Union Budget 2026-27 lays the groundwork for long-term competitiveness, stronger supply chains, and global market integration. The coming months will reveal how businesses adapt these policy signals into growth strategies.
Thomas Cook (India) Limited, India’s leading omnichannel travel services company, along with its group company SOTC Travel, has signed a strategic long-term Memorandum of Understanding with Guidance, the nodal agency of the Government of Tamil Nadu, and the Directorate of Tourism, Government of Tamil Nadu. The partnership aims to unlock Tamil Nadu’s tourism potential by accelerating visitation, enhancing destination awareness and delivering seamless, enriched travel experiences for Indian travellers.
The MoU was signed on February 2, 2026, at the Tamil Nadu Global Tourism Summit 2026 held in Mahabalipuram. The agreement was formalised by Mr. Abraham Alapatt, President & Group Head – Marketing, Service Quality, Value Added Services & Innovation, Thomas Cook (India) Limited and SOTC Travel; Dr. Darez Ahamed, IAS, Managing Director & CEO, Guidance Tamil Nadu; and Ms. J. Innocent Divya, IAS, Commissioner of Tourism, Government of Tamil Nadu.
This strategic collaboration brings together Thomas Cook India and SOTC Travel’s strong pan-India presence and expertise across leisure, MICE, business and B-Leisure travel segments with Tamil Nadu’s diverse tourism offerings. The partnership focuses on co-creating differentiated travel products, integrated marketing campaigns, and targeted consumer activations to drive sustained tourism growth across the State.
Working closely with the Department of Tourism, the collaboration will promote Tamil Nadu’s cultural, spiritual, wellness, nature and experiential tourism offerings through a mix of online and offline initiatives. Guidance Tamil Nadu will act as the nodal agency to ensure effective coordination, stakeholder engagement and alignment with the State’s long-term tourism development and destination branding strategy.
Commenting on the partnership, Mr. Rajeev Kale, President & Country Head, Holidays, MICE, Visa – Thomas Cook (India) Limited, said,
“Tamil Nadu is one of India’s most compelling and culturally rich destinations, offering an exceptional spectrum of experiences, from heritage and spirituality to wellness, nature, cuisine and contemporary urban culture. Through our strategic MOU with the Government of Tamil Nadu, we are delighted to partner in strengthening the State’s tourism proposition for the domestic market. Leveraging our omnichannel reach, powerful customer segments and deep market expertise, we aim to co-create distinctive products, enhance awareness, and drive sustainable visitation across leisure, MICE and business travel segments.”
Mr. SD Nandakumar, President & Country Head – Holidays & Corporate Tours, SOTC Travel, added, “We are pleased to collaborate with the Government of Tamil Nadu to unlock the State’s immense tourism potential. Tamil Nadu’s diverse offerings resonate strongly with evolving Indian traveller preferences—not only from metro markets, but also from Tier 2 and 3 cities. Our partnership will focus on innovative product development, education and training initiatives, and integrated marketing to elevate destination visibility and deliver enriching, experience-led travel for our customers, while creating long-term value for the State’s tourism ecosystem.”
The partnership marks a significant step towards strengthening Tamil Nadu’s position as a preferred domestic travel destination while supporting sustainable tourism growth and long-term economic development.
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