Here are 10 key points for Budget 2025-26: Tourism Boost with Visa Reforms, Homestay Loans, and Destination Upgrades:
- Development of 50 Tourist Destinations – The government will partner with states to enhance top tourist sites through a competitive challenge model.
- State Involvement in Infrastructure – States must provide land for infrastructure projects, while hotels in these areas will be classified under the Harmonized Master List (HML) to attract investments.
- Skill Development in Hospitality – Institutes of Hospitality Management will conduct intensive training programs to build a skilled workforce in tourism and hospitality.
- Financial Support for Homestays – MUDRA loans will be extended to homestay operators to boost community-driven tourism and local entrepreneurship.
- Improved Connectivity – The government will enhance transport infrastructure and streamline travel logistics to make tourist destinations more accessible.
- State-Level Performance Incentives – A Performance-Linked Incentive (PLI) scheme will encourage states to improve destination management, cleanliness, and marketing efforts.
- Visa Reforms – A simplified e-visa system and visa-fee waivers for select tourist groups will be introduced to attract international travelers.
- Focus on Spiritual Tourism – Special attention will be given to sites associated with Lord Buddha’s life and teachings to position India as a major Buddhist pilgrimage hub.
- Promotion of Medical Tourism – The ‘Heal in India’ initiative will be strengthened through private sector collaboration, enhanced healthcare infrastructure, and easier visa norms for foreign patients.
- Economic Growth and Job Creation – These measures aim to boost tourism-driven employment, attract investments, and enhance India’s global positioning as a premier travel destination.
Union Budget 2025-26: Key Tourism Reforms Unveiled to Boost Growth
Union Finance Minister Nirmala Sitharaman, in her Budget 2025-26 speech, announced a series of strategic initiatives to accelerate India’s travel and tourism industry. With a focus on employment-led growth, the government aims to enhance destination development, skill training, improved connectivity, and medical tourism, reinforcing India’s position as a globally competitive travel hub.
Development of Top 50 Tourist Destinations
Under the budget, the government will partner with state governments to develop 50 top tourist destinations through a competitive challenge-based model. States will be required to provide land for infrastructure projects, and hotels in these locations will be classified under the Harmonized Master List (HML) to attract investments.
“The top 50 tourist destinations in India will be developed in collaboration with states through a challenge mode. States must allocate land for key infrastructure, and hotels in these areas will be included under the infrastructure HML,” Sitharaman stated.
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Five Key Measures to Boost Tourism
The budget highlights five major initiatives aimed at enhancing job creation and strengthening the tourism sector:
- Skill Development – Specialized training programs will be launched in Institutes of Hospitality Management to equip youth with industry-relevant skills in tourism and hospitality.
- Support for Homestays – The government will extend MUDRA loans to homestay operators, empowering local entrepreneurs and promoting community-based tourism.
- Improved Connectivity – Efforts will be made to enhance transport infrastructure and streamline travel logistics for easier access to major tourist destinations.
- State-Level Incentives – A Performance-Linked Incentive (PLI) scheme will be introduced to encourage states to improve destination management, cleanliness, and marketing initiatives.
- Visa Reforms – A simplified e-visa system will be implemented, along with visa-fee waivers for select tourist groups to attract more international visitors.
“To drive employment-led tourism growth, we will introduce intensive skill training, extend MUDRA loans for homestays, enhance travel connectivity, and launch a streamlined e-visa system with select fee waivers,” Sitharaman stated.
Emphasis on Spiritual and Heritage Tourism
Building on the momentum from the July 2024 Budget, the government will prioritize the development of key spiritual tourism sites, especially those associated with Lord Buddha’s life and teachings. This initiative aims to establish India as a major Buddhist pilgrimage destination, drawing visitors from across the globe.
“Following the focus on religious and spiritual tourism in the July Budget, we will pay special attention to destinations linked to Lord Buddha’s legacy,” Sitharaman said.
Medical Tourism and ‘Heal in India’ Initiative
Recognizing India’s potential in medical and wellness tourism, the government will work alongside the private sector to strengthen the ‘Heal in India’ initiative. This program will include enhanced healthcare infrastructure and relaxed visa policies for international patients seeking treatment in India.
“We will collaborate with the private sector to promote medical tourism and ‘Heal in India,’ focusing on infrastructure expansion and simplified visa norms for foreign patients,” Sitharaman added.
Impact on the Travel Industry
These budgetary measures are expected to attract more investments, improve service quality, and create employment across India’s tourism sector. With a strong focus on infrastructure, skill development, and global marketing, the government aims to build a competitive, sustainable tourism industry that significantly contributes to economic growth.
By introducing these reforms, the Union Budget 2025-26 reinforces the tourism sector’s importance in India’s economic development, paving the way for new opportunities in the travel and hospitality industries while positioning India as a premier global travel destination.
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