Synopsis: The decisions in the interim budget demonstrate the government’s proactive attitude to revitalizing India’s railway and tourist industries. The government’s investment in modernization, connectivity, and infrastructure development strives to unlock the full potential of these sectors, driving economic growth, providing job opportunities, and improving the general quality of life for individuals throughout the nation.
Union Minister of India, Nirmala Sitharaman, made a strategic move to boost the tourism sector and highlighted the significance of infrastructural development in Indian destinations while presenting her speech for the Budget 2024. The Minister emphasizes more on the importance of local entrepreneurs and the many opportunities that the travel and tourism industry paves while presenting the budget.
The Minister said that the successful organization of G 20 meetings in about 60 places displays the diversity of India to a global audience and also the country’s economic strength. These have made India a popular destination for business and conferences. Also, she said that spiritual tourism has “ tremendous opportunities for local entrepreneurship”.
In relation to the tourism experience, the Minister alleged
“States will be encouraged to take up comprehensive development of iconic tourist centers, branding and marketing them at a global scale. A framework for a rating of the centers based on the quality of facilities and services will be established”.
Nirmala Sitharaman
She also added,
“Long-term interest-free loans will be provided to states for financing such development on a matching basis”.
Nirmala Sitharaman
The Tourism and hospitality industry insiders welcomed the announcement made by the minister in terms of granting long-term interest-free loans to the states for developing tourist centers, and and airport development and undertaking various projects for improvement of tourism infrastructure on the country’s islands. The industry insiders are hoping that the actual JUly budget 2024 will take these statements forward along with some other crucial steps.
Minister Nirmala Sitharaman announced long-term interest-free loans to states for the development of tourism centers and also undertaking projects for the improvement of the infrastructure of India’s islands including Lakshadeep. Consulting CEO of the Federation of Associations in Indian Tourism & Hospitality,
Ashish Gupta said
“It is hoped that the actual budget in July will take forward the statement of intent announced in the interim budget of international promotion, and develop iconic destinations in partnership with states through an incentive based system. Announcements such as granting an infrastructure status to the hospitality industry, a focus on enhancing foreign tourist arrivals through enhanced overseas marketing budgets, and the reduction of GST (goods and services tax) to 12% on hotels and restaurant are also needed and will reflect a long-term intent to promote a tourism, travel and hospitality-driven economy.”
Ashish Gupta
The Finance Minister alleged that states will be encouraged to take up the development of tourist centers and branding and marketing them globally. Also, the long-term interest-free loans will be provided to states for that purpose. She said that projects for improvement of tourism infrastructure, airport connectivity, and other amenities will be taken up on India’s islands. The middle class also aspires to travel and explore now and it comprises spiritual tourism and offers many opportunities for local entrepreneurship. She added
“Expansion of existing airports and development of new airports will continue expeditiously”.
Finance Minister Nirmala Sitharaman
Co-founder and group CEO of Makemytrip, Rajesh Magow said that the commitment to upholding domestic tourism through new ways including rail and air travel couples with an ongoing emphasis on tourism destinations in the realm of island tourism and spiritual tourism reflects a great strategic aim for long-term growth of the tourism industry.
KB Kachru, chairman Emeritus for South Asia at Radisson Hotel Group said that empowerment through interest-free loans will increase India’s tourism landscape for sure. Gautam Aggarwal’s decision to President South Asai at Mastercard also put their views forward and alleged that the government’s decision to invest in the tourism industry is an outstanding and welcoming move that will benefit the Indian economy.
Also, Director of Symphony Resorts Jaikar Singh appreciated the government’s statement to expand existing airports and develop new ones specifically in Andaman and Nicobar Islands. He said and notified the leap in airline routes and orders for aircraft by Indian carriers. He said that it is a promising step towards unlocking their true tourism potential and also expressed satisfaction with the success of the Udan scheme.
On the other hand president of IATO Rajiv Mehra said that the industry welcomes the increase in overall budgetary allocation in 2024 but without overseas roadshows, publicity campaigns abroad, and familiarization trips the country cannot draw tourists and visitors to the country.
