Union Budget 2025: A Game-Changer for India's Hospitality Sector

Union Budget 2025: A Game-Changer for India's Hospitality Sector

By Nishang Narayan

Published on February 4, 2025

The Union Budget 2025 has set the stage for significant transformation in India's hospitality and tourism sector. With a strong emphasis on infrastructure, connectivity, and investment-driven growth, industry leaders believe these measures will bring long-term benefits, attracting both domestic and international travelers.

One of the key highlights is the modified Udaan scheme, which will introduce 120 new destinations, strengthening regional connectivity and boosting tourism in emerging hotspots. Hotels, resorts, and homestays in lesser-explored regions are expected to see an increase in footfall, fostering further development and investment.

Ambika Saxena, CEO of TWH Hospitality, emphasized how the expanded Udaan scheme will open doors for new destinations, benefiting hotels and resorts. She stated:

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"This year, the government has presented a well-balanced and growth-oriented budget, specifically supporting the tourism and hospitality sectors. The modified Udaan scheme will open doors for the hospitality sector by bringing new tourist destinations into the spotlight. Hotels, resorts, and homestays in unexplored regions will see a surge in demand, encouraging further investment and development. With the government's push for connectivity and including new 120 destinations, we expect a stronger pipeline in the hospitality sector, catering to both business and leisure travelers in emerging tourism hotspots."

The expansion of tourism-friendly policies is another key highlight, with a focus on domestic and spiritual tourism. Measures such as streamlined e-visa facilities, visa fee waivers, and performance-linked incentives for states will improve tourist amenities and cleanliness, ultimately enhancing the travel experience.

Yogesh Mudras, Managing Director of Informa Markets in India, sees this as a landmark initiative for India's tourism industry:

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"The Union Budget 2025 presented a progressive roadmap that prioritizes infrastructure, economic growth, and regional connectivity. The government's continued emphasis on regional development and tourism-friendly policies will have a far-reaching impact on multiple sectors, including travel and tourism. The modified Udaan scheme, in particular, is a landmark initiative that will strengthen India's position as a global tourism hub. The scheme has already benefited 1.5 crore middle-class travelers, and the expansion of the scheme to include 120 new destinations is a game-changer for regional connectivity. With increased accessibility, we anticipate a surge in domestic tourism and business travel, providing a major boost to the tourism industry."

The government has also placed a strong focus on homestays and small-scale tourism businesses by introducing Mudra loans to empower local entrepreneurs. This move is expected to encourage more people to invest in the hospitality space, promoting sustainable and community-driven tourism.

Pranav Dangi, Founder and CEO of The Hosteller, believes these steps will help India emerge as a top global destination:

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"The Union Budget 2025 presents a robust vision for India's tourism sector. The emphasis on infrastructure development, support for homestays through Mudra loans, and the inclusion of hotels in the harmonized scheme will strengthen the industry's foundation. Additionally, developing 50 tourist destinations will definitely enhance India's position as a global travel hub. Being in the travel and hospitality space for more than a decade, I see these initiatives as the required push for accessibility, affordability, and innovation in travel, setting the stage for India to emerge as a top global destination."

Another critical aspect of the budget is skill development and workforce training in hospitality. The government aims to provide intensive training programs through Institutes of Hospitality Management, ensuring world-class education and better employment opportunities in the sector.

Saurabh Gahoi, Senior Vice President of Ramee Group of Hotels, sees this as a transformative step for the industry:

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"The Union Budget announcement by FM Sitharaman marks a significant milestone, driving growth while empowering citizens, particularly the middle class. A notable highlight is the emphasis on the travel and hospitality industry, which promises transformative changes.
Key measures include enhancing connectivity to major tourist destinations, offering performance-linked incentives to states for better destination management, and improving tourist amenities and cleanliness. Additionally, the introduction of streamlined e-visa facilities and visa-fee waivers for select groups is set to boost inbound travel.
Domestic and spiritual tourism is set to flourish, supported by revised income tax reforms that encourage travel within the country. A major boost comes from intensive skill-development programs, particularly in Institutes of Hospitality Management, ensuring world-class training for the youth. By prioritizing individual growth, these initiatives will lead to superior customer experiences, elevating India's hospitality standards globally.
This budget serves as a catalyst for long-term industry growth, creating new business opportunities and employment. With a focus on infrastructure, workforce development, and seamless travel experiences, FM Sitharaman's budget is a game-changer, strengthening India's position as a premier travel and hospitality hub."

Conclusion

With infrastructure development, connectivity expansion, and workforce training at its core, the Union Budget 2025 is a major step forward for India's hospitality and tourism industry. By enhancing accessibility, supporting small businesses, and improving the ease of travel, the government has laid the foundation for a vibrant, competitive, and globally recognized tourism sector. These policies are expected to create new business opportunities, attract investments, and establish India as a premier travel destination in the years to come.


IndiGo Backs Air Taxi Vision

IndiGo Backs Air Taxi Vision

By Hariharan U

Published on April 19, 2026

IndiGo Ventures has made a strategic equity investment of Rs 10 crore in Sarla Aviation, marking an early step toward building India’s first nationwide air taxi network.

The investment, which was part of Sarla Aviation’s previous funding round led by Accel and Nikhil Kamath, signals a deeper alignment between aircraft manufacturing and airline operations in India’s emerging urban air mobility space.

The partnership aims to address a long-standing gap in India’s mobility ecosystem, the middle-distance segment. While short-distance travel is handled by road and metro systems and long-distance routes by railways and airlines, journeys in the 30–300 km range remain inefficient and time-consuming.

Electric vertical take-off and landing (eVTOL) aircraft are being positioned as a solution to this gap. These aircraft are designed to operate quietly, without the need for runways, and at lower costs compared to helicopters, potentially transforming how people move across cities and nearby regions.

Sarla Aviation brings the hardware capability to the partnership, with a hybrid-electric eVTOL platform tailored for Indian conditions. The company has built one of India’s largest private eVTOL demonstrators and is backed by a team with experience across global players such as Lilium, Volocopter, Beta Technologies, and Joby Aviation.

On the other hand, IndiGo contributes operational scale and infrastructure. As India’s largest airline, it operates over 2,000 daily flights across more than 85 airports, offering a strong backbone for future commercial deployment, along with maintenance, distribution, and safety expertise.

The company said the investment goes beyond funding, representing a strategic move to create an aligned OEM-operator ecosystem, something that has not yet existed in India at this scale. Globally, similar models have been seen with airlines like United Airlines investing in Archer Aviation, Delta Air Lines backing Joby Aviation, and American Airlines partnering with Vertical Aerospace.

Adrian Schmidt, Co-founder and CEO of Sarla Aviation, said the partnership marks a turning point for India’s mobility future. He noted that IndiGo’s backing adds credibility and scale to the vision of making air mobility more accessible and efficient for everyday use.

Founded in 2023 by Rakesh Gaonkar and Adrian Schmidt, Sarla Aviation is headquartered in Bengaluru and is named after Sarla Thukral. The company is focused on building advanced aircraft systems for intra- and inter-city travel.

Its flagship programme includes a six-seater electric flying taxi designed to significantly reduce travel time in congested urban centres such as Bengaluru, Mumbai, Delhi, and Pune. The aircraft is being developed with a focus on safety, affordability, and ease of use, with the aim of making air mobility as seamless as app-based ride-hailing services.

As India looks to address growing congestion, rising demand density, and evolving transportation needs, this collaboration could play a key role in shaping the next phase of aviation-led mobility in the country.


Cohoma Coffee Secures Seed Funding

Cohoma Coffee Secures Seed Funding

By Hariharan U

Published on April 19, 2026

Specialty coffee brand Cohoma Coffee has raised Rs 5 crore in a seed funding round led by Inflection Point Ventures along with Swishin VC, as it looks to strengthen its manufacturing capabilities and accelerate global expansion.

The company plans to utilise the fresh capital to scale production and expand its presence in international markets. Positioned in India’s growing specialty coffee segment, Cohoma has built a fully integrated model that controls the entire coffee journey, from sourcing beans to manufacturing brewing machines.

Cohoma Coffee offers one of the widest ranges of equipment-free specialty coffee products in India. Its portfolio is designed for convenience, allowing consumers to prepare coffee in under a minute without requiring specialised tools. The brand also claims to offer the country’s only naturally flavoured brews made without added sugar or preservatives.

The company sources coffee beans from regions across India, Africa, and South America, enabling a diverse range of blends, including rare naturally infused varieties. Alongside roasting, it also manufactures its own super-automatic machines catering to hospitality and corporate clients.

Commenting on the investment, Vinay Bansal, Founder and CEO at Inflection Point Ventures, said the brand has created a distinct position in India’s specialty coffee market by owning the entire value chain. He highlighted the company’s focus on convenience-led innovation and its growing repeat customer base as key strengths supporting its expansion plans.

Cohoma has also introduced grind-on-demand café kiosks in premium retail locations, offering customers over 15 coffee options with guided assistance to find their preferred brew. Its omnichannel strategy spans retail stores, e-commerce platforms, and partnerships with hotels, corporate offices, cafés, and multiplexes.

The brand provides turnkey coffee solutions for the hospitality sector, ensuring consistent quality across formats. According to the company, this focus on experience and reliability has helped it achieve a repeat customer rate of over 90 percent.

Kanika Birla, Founder of Cohoma Coffee, said the company’s aim has been to make specialty coffee more accessible without the usual complexity. She added that the new funding will help strengthen manufacturing capabilities while expanding globally, as the brand continues to focus on delivering a high-quality coffee experience across different consumption occasions.


DYN at Hilton Bangalore Embassy GolfLinks Celebrates India’s Harvest New Year with a Curated Feast

DYN at Hilton Bangalore Embassy GolfLinks Celebrates India’s Harvest New Year with a Curated Feast

By Hariharan U

Published on April 11, 2026

DYN at Hilton Bangalore Embassy GolfLinks ushers in the season of new beginnings with a thoughtfully curated Harvest Feast, celebrating India’s diverse regional New Year traditions this April.

Marking the spirit of harvest and renewal, the experience brings together the essence of Baisakhi, Pohela Boishakh, Tamil Puthandu, and Vishu, offering guests a culinary journey across the country through festive flavours and shared traditions.

The specially curated spread highlights robust Punjabi classics such as Amritsari Chole, Dal Bukhara, and Tandoori Murgh, alongside popular favourites like Paneer Tikka and Jeera Pulao, capturing the hearty and celebratory spirit of Baisakhi.

Drawing inspiration from Bengal’s New Year festivities, the menu features dishes like Basanti Pulao and Cholar Dal, known for their aromatic and festive appeal. Southern traditions are equally showcased with comforting preparations inspired by Puthandu and Vishu, including Avial, Sambar, and Vegetable Thoran, complemented by coconut-rich accompaniments that define South Indian festive dining.

The experience concludes on a sweet note with traditional desserts such as Pinni and Phirni, evoking nostalgia and the warmth of celebratory gatherings across regions.

Set in a relaxed and inviting ambience, the Harvest Feast offers a meaningful way to celebrate the season—whether with family, friends, or simply in appreciation of India’s rich culinary diversity.

Blending regional authenticity with contemporary hospitality, DYN presents a dining experience that reflects the joy of togetherness and the promise of new beginnings.

Event Details:
What: Harvest New Year Feast
Where: DYN
Date: April 13 – April 15, 2026
Time: 12:30 PM – 3:00 PM

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