
As the Union Budget 2025 approaches, industry leaders from the tourism and hospitality sector are calling for strategic policy reforms to drive growth, enhance competitiveness, and position India as a premier global travel destination. Their key demands focus on infrastructure status, taxation reforms, sustainable tourism, and skill development.

Hospitality Industry’s Call for Growth and Global Competitiveness
The hospitality industry is poised for transformative growth, with the potential to significantly boost India’s economic expansion, create employment opportunities, and enhance its global tourism standing. Manju Sharma, Managing Director of Jaypee Hotels & Resorts, highlights the urgent need for strategic policy reforms to unlock the sector’s true potential.
Infrastructure Status: A Game-Changer for Hospitality
Sharma advocates for granting infrastructure status to the hospitality sector, which would enable access to competitive financing. This critical move would pave the way for developing world-class facilities that meet evolving global standards, elevating India’s reputation as a premier travel destination.
Streamlining Taxation and Licensing for Efficiency
Simplified taxation structures and streamlined licensing processes are key to enhancing operational efficiency. Sharma emphasizes that such reforms would make India a more attractive and competitive destination in the international tourism market, driving increased inbound travel and investment.
Sustainable Tourism and Skill Development: The Future of Hospitality
Sharma envisions a robust ecosystem for next-generation hospitality, built on sustainable tourism infrastructure and skill development initiatives. With government support, the industry can offer tech-integrated, eco-friendly luxury experiences that cater to modern travelers while preserving India’s rich cultural heritage.
Positioning India as a Global Tourism Leader
According to Sharma, the Union Budget 2025 presents a golden opportunity to position India as a global tourism leader. Strategic investments and policy interventions could propel the hospitality sector to new heights, transforming India into a preferred destination for travelers worldwide.
Stay tuned to see how the Union Budget 2025 could shape the future of India’s hospitality industry and its role on the global stage.

Transforming India’s Intercity Mobility with Smart Solutions
Manish Rathi, Co-founder and CEO of IntrCity SmartBus, highlights the immense potential to reshape the country’s intercity mobility. Recognizing the private bus sector as the backbone of long-distance travel in a rapidly urbanizing India, Rathi acknowledges the government’s progress in improving highway infrastructure. However, he believes it is time to take the next big step in revolutionizing public transportation.
Building Airport-Style Bus Terminals Across National Highways
Drawing from years of experience serving millions of passengers, Rathi emphasizes the importance of developing centralized, airport-style bus terminals along national highways. These modern facilities would feature secure boarding zones, clean restrooms, and vibrant food courts—amenities that passengers deserve for a comfortable and convenient travel experience. He argues that investing in such infrastructure would not only benefit bus operators but also encourage more Indians to choose shared mobility over private vehicles.
Integrating Commercial Cargo with Passenger Transport for Sustainable Growth
Rathi also envisions a transformative opportunity in integrating commercial cargo transport with passenger services. Leveraging modern buses with sophisticated storage systems, this dual-use approach could generate additional revenue streams while contributing to India’s sustainability objectives. He points out that such models have already seen success globally and can be adopted to benefit India’s transportation sector.
A Golden Opportunity to Lead in Sustainable Transport
With the upcoming budget, Rathi sees a golden opportunity to position India as a global leader in sustainable transportation. He stresses that by making strategic investments in intercity mobility now, the government can create a smarter, greener mobility ecosystem that effectively serves the diverse needs of Indian travelers. The private bus sector, according to Rathi, is ready to collaborate with the government to deliver world-class intercity transport solutions that contribute to a greener, more efficient future.
Stay tuned for how the 2025 Union Budget could set the stage for a new era in India’s intercity mobility landscape.

Hyatt Centric MG Road Bangalore’s Vision for Hospitality Growth
Kulpreet Kaur, Director of Sales & Marketing at Hyatt Centric MG Road Bangalore, shares her optimism regarding the potential of the upcoming budget to significantly impact India’s hospitality sector.
Granting Industry Status to Hospitality for Sustained Growth
Kaur highlights the importance of granting industry status to the hospitality sector, a transformative move that would recognize its substantial contribution to GDP and employment generation. This recognition, she believes, would facilitate easier access to financing and attract increased investments, setting the stage for long-term growth and development in the hospitality industry.
GST Reduction to Boost Competitiveness and Stimulate Demand
One of the key expectations for the forthcoming budget is a reduction in Goods and Services Tax (GST) rates. Kaur emphasizes that lowering GST would enhance India’s competitiveness as a tourism destination, encouraging both domestic and international tourists. She adds that such a change would stimulate demand, drive higher spending, and contribute to job creation and economic growth. Additionally, she points out that the hospitality sector has long advocated for zero GST or a refund of GST collected from foreign guests, believing this could further boost tourism and employment.
Investing in Infrastructure for Global Tourism Events
Kaur also calls for significant investment in infrastructure development, particularly in building world-class facilities to host international events, concerts, and conventions. This, she argues, would not only attract global tourists but also stimulate local economies and create job opportunities. By positioning India as a premier global tourism hub, these developments could drive the country’s tourism industry to new heights.
A Strategic Path Forward for Hospitality Sector Growth
In summary, Kaur hopes the Union Budget 2025-26 will introduce strategic measures that will foster a thriving environment for the hospitality sector. By supporting the growth of the industry through investments and reforms, India can continue to enhance its global position as a top tourism destination, contributing significantly to economic development and job creation.

Clarks Exotica’s Vision for Strengthening India’s Tourism and Hospitality Sector
Mr. Balaji M, CEO of Clarks Exotica Convention Resort and Spa, outlines key policy changes that could significantly boost the country’s tourism and hospitality industry.
Revisiting GST Rates to Enhance Domestic Tourism Competitiveness
Mr. Balaji M emphasizes the need to re-evaluate the Goods and Services Tax (GST) rate on hotel stays, which currently stands at 18%. While this rate aligns with global standards in certain markets, he argues that it inadvertently makes domestic travel less competitive, prompting more Indians to choose international destinations. A revision of this structure, he believes, could make domestic tourism more affordable and appealing, encouraging more travelers to explore India.
Boosting the MICE Sector through GST Exemptions and Incentives
Another key focus for Clarks Exotica’s CEO is the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector, which holds vast potential for growth. He points out that the current GST charges on MICE events pose a challenge. Exempting MICE events from GST or offering incentives to both domestic and international event organizers could position India as a global leader in hosting conferences, exhibitions, and other large-scale events, further enhancing the country’s tourism offerings.
Promoting Hyper-Local Tourism to Unlock Regional Potential
Mr. Balaji M also advocates for promoting hyper-local tourism, highlighting unique regional experiences like Karnataka’s coffee trails, Kerala’s houseboat getaways, and Rajasthan’s rural village stays. He suggests that these distinctive offerings not only attract tourists but also create economic opportunities for local communities, benefiting both the tourism sector and the broader economy.
Increased Marketing Budget to Showcase India’s Cultural Heritage
To further enhance India’s appeal to global travelers, Mr. Balaji M calls for an increased budget allocation to market India’s rich cultural and natural heritage. He proposes campaigns similar to ‘Incredible India,’ with a more focused approach on hyper-local tourism experiences that reflect the country’s diverse offerings. This initiative could inspire both international and domestic tourists to explore the breadth of India’s heritage.
A Strategic Path Toward Sustainable Growth
In conclusion, Mr. Balaji M is confident that thoughtful policy changes in the upcoming budget will not only strengthen India’s position as a leading travel destination but also foster sustainable growth for the tourism and hospitality industry. With the right investments and reforms, India can continue to shine as a premier global destination for both leisure and business travelers.

A Path to Strengthening the Hospitality Sector Mr. Jai Sreedhar, Joint Managing Director and CEO of Rosetta Hospitality, there are three key areas that, if addressed, could help the sector unlock its full potential.
- Rationalisation of GST:
One of the primary concerns in the hospitality sector is the existing GST structure, which often proves to be a challenge, especially for luxury hotels. Mr. Sreedhar advocates for the rationalisation of GST rates, aiming for more uniformity across various categories. Simplifying the GST framework would not only make travel more affordable for guests but also streamline compliance for hotel operators. This, in turn, would help drive demand and ultimately boost revenue for businesses in the sector.
- Enhanced Funding Support:
Another pressing issue is the need for better funding options for the hotel industry. Mr. Sreedhar emphasizes that the sector requires stronger financial backing from both the government and banks to support the development of new projects. Access to loans with favorable terms could encourage greater investment in infrastructure, fostering the sector’s overall growth and contributing to its expansion across the country.
- Input Tax Credit on Construction Costs:
A critical issue for hotel developers is the inability to claim input tax credit on construction costs. Mr. Sreedhar argues that allowing this credit would significantly reduce the financial burden on developers, providing them with a much-needed incentive to invest in new hotels and expand existing ones. This could stimulate both domestic and international investment in the sector, driving further growth.
The hospitality industry plays a vital role in India’s economy, creating jobs and attracting tourism from both domestic and international markets. By addressing these key challenges in the 2025 Union Budget, the government can significantly strengthen the sector, making it a key driver of India’s economic growth in the coming years.

Driving Growth and Sustainability in Travel and Hospitality
Ms. Vijeta Soni, Co-Founder and CEO of Sciative Solutions, expresses optimism about the potential for the upcoming budget to address critical challenges and foster growth in India’s travel and hospitality sector.
Investing in Infrastructure to Boost Connectivity
Soni emphasizes the importance of enhancing connectivity through investments in air, rail, and road infrastructure. She highlights the need for improved access to tier-2 and tier-3 cities, with a focus on developing new airports, railway lines, and highways to better serve these emerging markets. This strategic investment would open up new opportunities for travel and tourism, benefiting both local economies and the broader sector.
GST Reduction to Stimulate Tourism Growth
For the hospitality industry, Soni advocates for a reduction in GST rates on hotel rooms priced above ₹7,500. She believes that such a move would stimulate both domestic and international tourism, making India a more attractive destination for travelers while supporting the growth of high-end hospitality services.
Creating a Unified National Regulatory Framework for Intercity Mobility
Soni also stresses the need for a standardized national regulatory framework for intercity passenger mobility. She points out the challenges posed by the current fragmented state-specific rules and calls for reforms that would promote fair competition and create a level playing field for all players in the sector.
Promoting Electric Mobility for Sustainable Growth
Another key expectation for the upcoming budget is a stronger focus on electric mobility. Soni advocates for subsidies, tax incentives, and infrastructure development to support the transition to electric buses and greener fleets. These measures would not only contribute to a more sustainable travel ecosystem but also pave the way for long-term growth and environmental responsibility in the travel and hospitality industry.
With the right policy interventions, Soni believes Budget 2025 has the potential to drive transformative change in India’s travel, hospitality, and mobility sectors, setting the stage for a greener, more efficient, and more competitive future.