The Indian Association of Tour Operators (IATO) President, Rajiv Mehra, has expressed deep concern over the drastic reduction in the overseas tourism promotion budget in the Union Budget 2025. While the government has announced initiatives like the development of 50 new tourist destinations over the next 5 to 10 years and infrastructural enhancements in the hospitality sector, the cut in the overseas promotion budget to just ₹3 crore has raised serious apprehensions within the tourism industry.
“This is a major setback for India’s inbound tourism. The Ministry of Tourism, IATO, and other stakeholders rely heavily on overseas marketing and participation in global trade fairs to attract foreign travelers. With such a reduced budget, our visibility in international markets will be severely impacted,” Mehra stated.
He emphasized that last year’s allocation was significantly higher, making the current reduction a matter of urgent concern. “Foreign travel agents have started raising complaints, citing India’s declining presence in the global tourism market. Many international operators are reconsidering their engagement with Indian tourism due to negative publicity and lack of visibility,” he added.
Mehra has urged Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and Tourism Minister Shri Gajendra Singh Shekhawat to reconsider the allocation and increase the budget at least 20 times immediately. “A robust overseas promotion strategy is crucial for boosting foreign tourist arrivals, and without adequate funding, India risks losing a significant share of the international tourism market,” he warned.
Industry experts believe that a well-funded overseas marketing campaign is essential for positioning India as a top global travel destination, especially when competing with other countries aggressively promoting their tourism sectors.
