“The 2025 Union Budget lays a strong foundation for India’s travel and tourism industry, with some much-needed initiatives that will shape its future. Expanding the UDAN RCS scheme to 120 destinations and targeting 4 crore travellers is a crucial step in making regional connectivity more seamless, bringing previously overlooked destinations into the tourism mainstream. Developing 50 key tourism sites in partnership with states, along with granting infrastructure status to hotels in these destinations, is a progressive move that will boost investment, create jobs, and elevate the overall travel experience.
The focus on medical tourism under the ‘Heal in India’ initiative, along with streamlined visa norms and private sector collaboration, is another strong push in positioning India as a global hub for wellness and healthcare tourism. Similarly, incentives such as MUDRA loans for homestays, performance-linked incentives for states, and e-visa fee waivers for select groups will support local businesses, enhance accessibility, and attract a wider spectrum of travelers.
The announcement of five National Centres of Excellence for Skilling, including dedicated support for hotel management training, is a major win for the industry. Tourism thrives on people, and ensuring our workforce is equipped with world-class skills in hospitality, digital innovation, and sustainable tourism practices will significantly enhance service standards while creating more employment opportunities.
However, given the strides being made, it is a setback that critical concerns raised by travel service providers — such as restoring GST input credit, abolishing TCS, and granting industry status to tourism for tax benefits, have not been addressed. These measures are essential for improving ease of business, boosting liquidity, and ensuring the long-term sustainability of the sector.
The ₹33 crore allocation for international tourism marketing, while a significant jump from last year’s ₹3 crore, still pales in comparison to the ₹177 crore allocated for domestic tourism promotion. If we truly want to position India as a premier global travel destination, we need a stronger push in international branding and outreach.
This budget is undoubtedly a step in the right direction, reinforcing tourism’s role as a key economic driver. But to truly unlock its potential, there is a need for more industry-centric reforms that provide long-term support and financial ease for businesses across the ecosystem.”
