The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, was eagerly anticipated by the hospitality sector, especially in light of the Government of India's vision of Viksit Bharat by 2047. Pradeep Shetty, President of the Federation of Hotel & Restaurant Associations of India (FHRAI), offers his perspective on the budget’s implications for the sector.

Comment by Pradeep Shetty:

"The hospitality sector has been pinning high hopes on the Union Budget for 2024-25 presented by Smt. Nirmala Sitharaman today, on the backdrop of the Government of India's stated vision of Viksit Bharat by 2047 and the critical role tourism industry holds in achieving it. However, there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a $3 trillion economy by 2047.

Some key demands of tourism & hospitality to revitalise the sector such as GST rationalisation, granting of infrastructure status and bringing ease of doing business and policy reforms have not been considered in the budget once again, given the well-accepted multiplier effect of tourism on employment and economy. The hospitality sector is disappointed but not dejected as the overall focus on infrastructure development, employment generation, skill development, and development of religious tourism centres are the silver linings which will help the sector to tide over some of the critical challenges that it faces today. The focus of Budget 2024 on youth employment, skill development, and job creation are welcome initiatives. The industry has been facing a shortage of skilled workforce, especially in the hospitality sector.

It is also laudable that the Honourable Finance Minister's Budget speech highlights the Government's commitment to making India a premier global travel destination through targeted investment and strategic initiatives. Development of iconic spiritual sites along with the promotion of cruise and beach tourism can be helpful in attracting both domestic and international tourists."

While the Union Budget 2024-25 may not have met all the expectations of the hospitality sector, particularly regarding structural reforms and GST rationalization, it does offer positive elements such as infrastructure development, skill enhancement, and the promotion of tourism. These measures are expected to support the sector in overcoming current challenges and contribute to India's goal of becoming a leading global travel destination.