Ajay Prakash, President of the Travel Agents Federation of India (TAFI), has welcomed the Union Budget 2025, calling it a positive move for the tourism industry. He highlighted that tourism was mentioned multiple times, with a strong emphasis on employment generation and infrastructure development.
“One of the key takeaways is the expansion of the UDAN scheme to 120 destinations, along with the development of 50 new tourism hotspots and improved hotel infrastructure. These initiatives will significantly boost domestic and international tourism,” Prakash stated.
He also praised the streamlining of the e-Visa system and the waiver of visa fees for certain groups, calling it a step in the right direction. However, he emphasized the need for a comprehensive overhaul of the e-Visa process to make travel to India even more seamless.
A major highlight of the budget, according to Prakash, is the focus on Buddhist tourism, with increased efforts to promote India’s rich Buddhist heritage globally. “India has some of the finest Buddhist sites, and this is the right time to leverage them to attract a much larger number of international tourists,” he said.
The budget also recognizes the potential of medical tourism through the “Heal in India” initiative, which Prakash described as a “much-needed boost” to the sector. Additionally, he welcomed the increase in IT exemption limits, which he believes will benefit the middle class and indirectly encourage travel.
Another crucial reform is the increase in the Tax Collected at Source (TCS) threshold from ₹7 lakh to ₹10 lakh, which will facilitate smoother international travel for Indian outbound tourists. The announcement of new greenfield airports was also praised, as improved air connectivity is essential for reducing airfare costs and enhancing accessibility.
“Overall, Budget 2025 is a progressive one, with clear benefits for the tourism industry and the public. It sets the stage for significant growth in both inbound and outbound travel,” Prakash concluded.
