As Budget 2025 approaches, the hospitality industry is voicing its expectations for strategic reforms to drive growth and innovation. Vishal Puri, Co-Founder of Spalba, highlighted the industry's need for simplified GST compliance to ease operational challenges and promote business expansion.

“The hospitality sector is a vital contributor to India’s economic growth, and while it holds immense potential, operational hurdles must be addressed,” Puri stated. He urged the government to prioritize GST streamlining, which would reduce administrative burdens and foster a more business-friendly environment.

Beyond taxation, sustainability remains a key focus for the industry. Puri emphasized the importance of introducing mandatory sustainability practices such as energy-efficient construction and waste management. He suggested that tax incentives for renewable energy adoption in hotels and resorts could significantly lower operational costs while promoting eco-friendly practices.

In addition to physical infrastructure, digital advancements are critical for the sector’s growth. Puri advocated for the integration of digital twin technology, which creates virtual replicas of physical spaces, enabling hotels to optimize operations and elevate customer experiences. He proposed that the government incentivize the adoption of digital infrastructure technologies, especially in large-scale projects and government-backed events, to accelerate industry-wide transformation.

“A balanced approach merging sustainability, digital transformation, and regional growth will not only help the hospitality sector thrive but also contribute to a smarter, greener India,” he added. Encouraging digital innovation, such as e-infrastructure solutions with robust intellectual property protections, will pave the way for long-term sectoral growth and efficiency.

About Spalba

Spalba is a SaaS-based event-tech platform revolutionizing venue scouting and event planning. The platform empowers hotels like The Leela, Trident, and The Oberoi by offering advanced tools such as 3D walkthroughs and digital twins. These technologies enable hotels to provide virtual venue tours, reducing the need for physical visits and cutting down carbon footprints. By enhancing online presence and streamlining event planning, Spalba helps hotels attract international clients, boost bookings, and drive revenue growth.

With the right policies and government support, industry stakeholders believe that Budget 2025 can pave the way for a future where hospitality seamlessly integrates sustainability with digital transformation.

With the Union Budget 2025 on the horizon, the travel and hospitality sectors are optimistic about government initiatives to drive growth and recovery. Industry leaders are calling for focused measures to unlock the potential of a sector that contributes 7% to India’s GDP and supports over 39 million jobs.

Yogesh Mudras, Managing Director of Informa Markets in India, highlighted the sector’s immense potential, stating, “With India projected to reach a $125 billion tourism market by FY27, targeted measures are crucial. Investments in infrastructure such as airports, roads, railways, and public transportation can enhance connectivity and accessibility for both domestic and international travellers.” He further emphasized the need for simplifying GST for hospitality and aviation, financial support for MSMEs, and streamlined visa processes to attract digital nomads.

Mudras also underscored the importance of technological advancements and sustainability in shaping the industry’s future. He suggested incentivizing smart tourism and encouraging the adoption of AI, blockchain, and IoT to enhance traveler experiences and operational efficiency. Sustainability initiatives, such as eco-friendly infrastructure and waste management, are also crucial for long-term growth.

The upcoming Mahakumbh 2025 in Prayagraj presents a unique opportunity for the sector. With a proposed budget of ₹6,990 crore, the event is expected to generate approximately ₹25,000 crore in revenue and attract around 400 million visitors. The tourism and accommodation sectors are anticipated to benefit significantly, potentially contributing ₹40,000 crore to the economy.

Ambika Saxena, Group CEO of TWH Hospitality, echoed the sentiment, emphasizing the need for increased budgetary allocation to support tourism in emerging destinations. She remarked, “Strengthening domestic tourism initiatives and introducing policies to attract international tourists will not only boost employment but also attract investments and contribute significantly to India’s GDP.”

The industry sees Budget 2025 as a pivotal moment to position India as a global tourism leader. With domestic tourism witnessing a 14.8% revenue growth and a long-term vision of establishing a $4 trillion tourism economy by 2047, stakeholders are hopeful for progressive policies and strategic investments that will ensure a thriving and sustainable future for the sector.

As the Union Budget 2025 approaches, prominent voices in India’s Food & Beverage (F&B) sector have highlighted key reforms that could transform the industry. Leaders Saurabh Wadkar, Founder of Rooted, and Teja Chekuri, Founder of Full Stack Ventures, shared their insights on the policies they believe are crucial for the sustainable growth of the F&B, restaurant, and food delivery sectors.

Saurabh Wadkar, Founder of Rooted: A Call for GST Reforms and Support for Small Businesses

"The Union Budget 2025 offers a golden opportunity to uplift India’s restaurant and food delivery sector, especially for small businesses that are the heart of this industry," says Saurabh Wadkar.

He emphasizes the following:

• Reinstating Input Tax Credit (ITC): This could significantly lower operational costs and improve profitability for restaurants and cloud kitchens.
• GST Rate Reduction to 12%: Aligning GST rates with global standards would enhance competitiveness, benefiting both restaurants and food delivery services.
• Infrastructure Status for Ghost Kitchens: Recognizing ghost kitchens and food delivery ventures could pave the way for affordable loans and tax benefits, enabling entrepreneurs in smaller cities to thrive.
• Incentives for Technology Adoption: Encouraging the use of technology would help small players streamline operations, reduce costs, and achieve sustainable growth.
• Culinary Tourism Initiatives: Promoting regional cuisines would not only boost local restaurants but also spotlight India’s rich food heritage.

"With thoughtful measures like these, the Budget could transform the sector, creating opportunities for small businesses to flourish and strengthening their role as drivers of jobs, culture, and economic growth," he concludes.

Teja Chekuri, Founder of Full Stack Ventures: A Need for Licensing Simplification

Echoing the importance of reforms, Teja Chekuri emphasizes the F&B sector’s critical contribution to the economy, stating:
"The F&B, Restaurant, and Alco-Bev sectors are among the highest employment creators in India, promoting consumption, tourism, and economic growth across connected industries."

Chekuri highlights the urgent need for pro-public reforms, such as:

• Simplifying Licensing Systems: The current multi-layered process creates roadblocks that hinder growth. A single-window process would streamline approvals and foster a more vibrant business environment.
• Encouraging Investment: Actionable reforms would attract investments, promote innovation, and drive long-term economic growth.
• Leveraging Technology: With the world becoming increasingly interconnected, technology-driven solutions would support the sector’s sustained growth and improve global competitiveness.

"A futuristic approach to licensing and reforms will not only boost growth but also expose the vibrancy of India’s thriving F&B sector to the world," Chekuri affirms.

A Vision for Sustainable Growth

As leaders like Wadkar and Chekuri voice their expectations, it’s clear that the Union Budget 2025 has the potential to address key challenges in the F&B sector, from simplifying compliance to incentivizing sustainable practices. With these reforms, the industry could unlock its full potential, contributing to India’s economic growth while preserving its rich culinary heritage.