Finance Minister Nirmala Sitharaman made announcements related to the travel and hospitality sector on Saturday as she presented the Union Budget 2025-2026.
Anuj Rathi, Chief Business and Growth Officer, Cleartrip
Commenting on the Union Budget India 2025 for the travel and tourism sector, Anuj Rathi, Chief Business and Growth Officer, Cleartrip said, “India’s travel industry is poised for growth, with the government’s focus on infrastructure, sustainable tourism, and medical tourism. The expansion of UDAAN, the development of 50 key tourist destinations, and support for homestays offer significant opportunities. Cleartrip aims to leverage these efforts to provide seamless, affordable travel experiences for all.”
Rajesh Ghanshani, Director of Partnerships, STAAH
We are glad to learn that the Union Budget 2025-26 presents a promising outlook for the hospitality space. The government’s focus on providing infrastructure status to hotels in select tourist destinations will undoubtedly ease access to financial resources and enable much-needed development in key regions. Additionally, the introduction of initiatives like the promotion of medical tourism and the provision of Mudra loans for homestays will create avenues for rural tourism within the hospitality sector. This budget aligns well with the industry’s need for support in expanding its reach, fostering local businesses, and driving sustainable growth in 50 select destinations. With these measures, we look forward to seeing a more vibrant hospitality ecosystem that will benefit both businesses and the communities they serve.
Dr. Sanjay Sethi, Managing Director & Chief Executive Officer, Chalet Hotels Limited.
“The Union Budget 2025 has outlined a set of impactful initiatives that will play a pivotal role in boosting India’s tourism sector, underscoring the government’s dedication to advancing the travel and hospitality industry. Key measures, including visa-free access for specific foreign groups, simplified e-visa procedures, and the expansion of the UDAN scheme to 120 new destinations, will greatly improve connectivity and ease of travel, benefiting both domestic and international tourists.
The planned development of 50 key tourist destinations in collaboration with state governments is a game-changer, ensuring better infrastructure, improved connectivity, and world-class amenities. This will not only elevate India’s global tourism competitiveness but also encourage private-sector investment in the hospitality ecosystem.
The government’s focus on medical tourism is another welcome move that positions India as a leading global hub for high-quality healthcare and wellness services, driving demand for hospitality and allied sectors. More importantly, putting extra disposable income in the hands of the consumer will boost overall consumption, as well as help accelerate domestic tourism and increase demand for hotels and travel services. With tourism playing a critical role in employment generation and economic contribution, these measures will act as strong enablers for sustained growth.”
Mr Rajiv Mehra, President – Indian Association of Tour Operators
Mr. Rajiv Mehra, President – of the Indian Association of Tour Operators thanked the Hon’ble Finance Minister for giving due importance to the government considering its role in the economic growth of the country and employment generation.
This will include infrastructure development to improve the overall visitor experience. The focus will be on enhancing the appeal and accessibility of these locations to attract more visitors. Special focus on destinations associated with the Buddha Sector. These sites will be developed to promote spiritual tourism, aiming to attract both domestic and international visitors to elevate India’s status as a spiritual tourism hub. To encourage local tourism, mudra loans will be available to homestay businesses; to promote medical tourism to attract foreign patients under “Heal-in-India” campaigns; to introduce funds-of-funds to support technological innovation and startups in the sector. There is also mention of adding na ew sector under the Udaan Scheme and most importantly Visa fee waivers and e-visa options that will be introduced for certain tourist groups to attract more visitors.
Mr Mehra further added that there is no mention of rationalization of taxes and giving export industry status to the Tourism industry in the union budget, which is a long pending demand of IATO based on the foreign exchange earnings. These are old pending demands of IATO and Mr Mehra is hopeful, that they will be considered favourably by the GST Council.
Aditya Sanghi, CEO of Hotelogix.
“I welcome the government’s commitment to enhancing tourism across 50 destinations linked to Lord Buddha’s journey. The expected influx of visitors will spur the development of new hotels and infrastructure. It will significantly support India’s growing religious tourism, which is set to generate a revenue of about 59 billion by 2028 and create 140 million temporary and permanent jobs by 2030. Also, the proposed streamlined e-visa system and Visa fee waiver for tourists from select countries will promote inbound tourism as the country is getting ready to host 3%-5% more foreign tourists in 2025 vs. last year.”
Arun Bagaria, Co-Founder & CEO, TravClan.
“TravClan welcomes the budget’s robust focus on tourism as a major engine for economic growth. The government’s plans to develop 50 tourist destinations, enhance e-visa facilities, and introduce visa fee waivers for select countries are encouraging steps that will help create a more vibrant and inclusive tourism ecosystem. As we continue to support travel agents in delivering exceptional experiences, we see these initiatives as key to strengthening India’s global appeal and fostering sustainable growth within the travel industry. We are hopeful that these measures will benefit all stakeholders and further enrich the journeys of travellers worldwide.”
Raahul Deoolekar, Director & Co-founder, Destination Mantra
We extend our heartfelt congratulations to the Government of India for presenting a visionary Union Budget 2025, marking a new era of growth for the tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) industry.
With a dedicated allocation towards tourism infrastructure, connectivity, and employment, this budget is a game-changer that will elevate India’s position as a global travel and business hub. Key initiatives such as the upgradation of the top 50 destinations, interest-free loans for states, skill development programs, expansion of 120 new UDAN routes, and simplified e-visa processes will significantly enhance accessibility, ease of travel, and immersive tourism experiences.
The focus on spiritual and medical tourism, coupled with the development of a new greenfield airport in Bihar, further strengthens India’s tourism ecosystem, fostering both leisure and corporate travel opportunities.
Aloke Bajpai, Group CEO, ixigo
“We are pleased that the government will continue to prioritize the UDAN scheme to enhance regional air connectivity, benefiting travellers from Tier 2 and Tier 3 cities. Great to see a focus on developing greenfield and brownfield airports in Bihar and the expansion of Patna airport. For a population of 120+ million, we had only 3 operational airports there. The development of new airports is essential to meet the rising demand for air travel, support first-time flyers, and accommodate the region’s growing air traffic. The government’s continued focus on developing 50 new tourist destinations, with a special emphasis on spiritual sites, will further drive the growth of domestic and inbound travel. Spiritual tourism has been witnessing strong growth in the last two years. Bookings to destinations like Varanasi, Gaya, Shirdi, Puri, Haridwar, and Vaishno Devi increased by 100-150% YoY on ixigo last quarter. Initiatives like visa fee waivers and e-visa options for select tourist groups will further enhance India’s appeal as a global destination, making travel more accessible and boosting inbound tourism.”
Mr Sandeep Arora, Director of Brightsun Travel, India:
“The Union Budget 2025-26 lays a strong foundation for India’s travel and tourism sector, with a clear focus on infrastructure, heritage tourism, and fiscal relief. Investments in new airport developments, high-speed rail, and last-mile connectivity will significantly enhance accessibility, particularly to emerging destinations. The increased budget for heritage conservation aligns well with the growing global demand for cultural tourism, making India more competitive on the world stage.
Additionally, the revision in income tax slabs, raising exemptions to ₹12 lakh, could boost domestic travel demand as discretionary spending rises. However, the industry still awaits key structural reforms, such as granting infrastructure status to hospitality, GST rationalization, and simplified licensing processes—measures that could drive long-term growth and investment.
While this budget is a step in the right direction, India’s tourism potential remains vast. To truly unlock it, we need continued policy focus on sustainability, digital transformation, and ease of doing business in the sector. We look forward to collaborative efforts between the government and industry stakeholders to position India as a global tourism powerhouse.”
Ayu Tripathi, Director, Aahana Resort
“We appreciate the government’s forward-looking vision for India’s tourism sector as outlined in the Budget FY2025-26 presented by Finance Minister Nirmala Sitharaman. The comprehensive measures announced demonstrate a clear commitment to strengthening tourism infrastructure and enhancing the overall visitor experience across the country. The plans to develop 50 premier tourist destinations, along with the successful air connectivity to 120 new destinations, will enable an additional four crore passengers over the next 10 years to explore India, showcasing promising growth potential. The emphasis on diverse segments, including spiritual, religious, and medical tourism, suggests potential opportunities for varied tourism experiences across India. As industry stakeholders, we welcome these developments and look forward to contributing to India’s growing hospitality, travel, and tourism landscape.”
Arun K Chittilappilly, Executive Chairman and MD, Wonderla Holidays Ltd.
“The Union Budget 2025’s focus on tourism is a visionary step toward strengthening India’s travel landscape. Developing 50 top destinations with state collaboration, enabling land and hotel projects, and introducing MUDRA loans for homestays will boost infrastructure, employment, and sustainable tourism. E-visa extensions and visa fee waivers further enhance accessibility for global travellers.
Additionally, tax reforms, including TDS rationalization and higher income exemptions, will increase disposable income, encouraging greater discretionary spending—especially among Gen Z. These measures position India as a global tourism hub while driving economic growth.”
Mr Jatinder Paul Singh, CEO and Co-founder, Viacation
The Union Budget 2025’s focus on enhancing tourism infrastructure, improving connectivity, and supporting adventure tourism provides a promising outlook for experiential travel in India. The Budget’s dedication to supporting startups through access to funding, ease of doing business, and the promotion of innovation aligns perfectly with our mission to democratize adventure travel. The government’s renewed focus on local employment through tourism and the development of new destinations further supports our goal of making adventure tourism more sustainable and inclusive. The promotion of medical tourism and the ‘Heal in India’ initiative positions India as a global wellness hub, attracting travellers seeking rejuvenation and holistic healing. We are particularly excited about the potential for growth in the tourism sector, with a strong emphasis on seamless travel experiences and the creation of destination-led employment. We look forward to expanding our reach, offering responsible tourism, and providing unique adventure-filled journeys in some of India’s most scenic and culturally significant locations, aligned with the growing interest in wellness retreats and medical tourism.
Mr. K Syama Raju, President of FHRAI
“I am happy to see the Union Budget 2025 focus on growing India’s tourism sector. The plan to develop the top 50 tourism destinations in partnership with state governments is a major initiative. This collaboration will not only improve infrastructure but also help spread tourism across the country, attracting more visitors and benefiting local communities. Additionally, the inclusion of hotels in these destinations in the harmonious master list is a significant move. This aligns with our long-standing request for granting of Infrastructure Status to the hospitality industry. This will facilitate access to cheaper, long-term financing, enabling hotels in these newly developed destinations to upgrade their facilities and offer world-class services, further boosting the sector.
The focus on medical and wellness tourism through the ‘Heal-in-India’ initiative in the Union Budget 2025 is a forward-thinking move that will strengthen India’s position as a global leader in healthcare. India has already earned a reputation for providing world-class medical treatments at a fraction of the cost found in developed countries. By promoting ‘Heal-in-India,’ the government aims to further capitalize on this strength, attracting international patients seeking affordable, high-quality healthcare services. This initiative will not only boost medical and wellness tourism but will also create a platform for India’s healthcare industry to expand its global footprint. With the support of the government, healthcare facilities across the country will be encouraged to offer specialized treatments and services, making India an attractive destination for patients from both developed and developing nations.
The introduction of visa fee waivers and e-visa options for certain tourist groups will make India an even more attractive destination.
The government’s focus on promoting religious tourism is also noteworthy. India’s rich spiritual and cultural heritage is a major draw for both domestic and international tourists, and the efforts to enhance infrastructure at key religious sites will create more organized, accessible, and enjoyable experiences for pilgrims and travellers alike. This will help further establish India as a leading destination for religious tourism, driving both tourism revenue and cultural exchange.
The modified UDAN scheme, aimed at enhancing regional connectivity to 120 new destinations and carrying an additional 4 crore passengers over the next 10 years, is another important initiative. This will make travel more accessible to a larger number of people, driving tourism to both popular and emerging destinations and improving economic opportunities for local communities.
The introduction of Mudra loans for homestay businesses is another positive step. It will give local entrepreneurs the chance to start and grow small tourism businesses, especially in lesser-known areas. This will help create more jobs and encourage tourism in these regions.
The National Geospatial Mission to improve mapping and spatial data will aid in better planning and development of tourism infrastructure. Overall, these measures show that the government is committed to making India a top global tourism destination and creating new opportunities for growth, jobs, and innovation in the sector.”
Pranav Dangi, Founder and CEO, of The Hosteller said “The Union Budget 2025 presents a robust vision for India’s tourism sector. The emphasis on infrastructure development, support for homestays through Mudra loans, and the inclusion of hotels in the harmonized scheme will strengthen the industry’s foundation. Additionally, developing 50 tourist destinations will enhance India’s position as a global travel hub. Being in the travel and hospitality space for more than a decade, I see these initiatives as the required push for accessibility, affordability, and innovation in travel setting the stage for India to emerge as a top global destination.”
Balasubramanian A, Senior VP and Business Head at TeamLease says, “The Finance Minister’s announcements will give a strong push to India’s tourism, healthcare, and aviation sectors, creating jobs and driving economic growth. Easier visa norms under ‘Heal in India’ will attract more medical tourists, boosting hospitals, hospitality, and foreign exchange earnings. Opening up PM GatiShakti data to private players and developing 22 key destinations in partnership with states will strengthen tourism infrastructure and local economies. The expansion of UDAN to 120 new destinations and new greenfield airports in Bihar will improve regional connectivity, making air travel more accessible to the middle class while supporting trade and investment. These steps position India as a key global destination for tourism, healthcare, and aviation-driven growth.”
Lucas Ramos, Senior Director, Travel & Membership – Asia, Pacific & India, RCI
“Budget 2025 underscores the Indian government’s commitment to positioning tourism as a key pillar of economic growth, job creation, and global engagement. By developing top destinations in partnership with states, enhancing medical tourism through the ‘Heal in India’ initiative, and introducing visa reforms, India is strengthening its appeal as a world-class travel and healthcare hub. The inclusion of hotels in the harmonized scheme and visa waivers for select foreign tourists further reinforce a comprehensive, future-ready travel ecosystem. With strategic policy alignment and private sector collaboration, this budget paves the way for India to become a more accessible, competitive, and thriving global destination.”
Mr. Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts
“The Union Budget’s strategic emphasis on tourism is a welcome move that will significantly boost India’s hospitality industry. The development of 50 key destinations under challenge mode, along with streamlined e-visas and visa-free access for select tourist groups, will drive international footfall and enhance India’s global appeal. The government’s initiative to include new hotels coming up in 50 key destinations in the infrastructure harmonized list (HML) for projects where land will be provided by the state governments is a welcome step. This will help hospitality investors to avail infrastructure lending at easier terms with enhanced limits and offer access to larger amounts of funds as External Commercial Borrowings (ECBs).
The government’s plan to introduce a modified UDAN scheme for strengthening connectivity to an additional 120 destinations and supporting helipad development in the northeastern region will help to connect potential tourist destinations in the region.
Particularly, the focus on the Buddhist Circuit presents immense opportunities for hospitality expansion. With greater infrastructure and promotion around these culturally significant sites, we see strong potential to develop quality accommodations and travel experiences in these regions, catering to both domestic and international travellers.
Additionally, skill development initiatives through IHMs and financial support for homestays via Mudra loans will strengthen the sector, ensuring high-quality service and deeper community involvement in tourism growth. Cygnett Hotels is keen to align with these initiatives, expanding our footprint in high-growth destinations and playing a pivotal role in India’s tourism success story.”
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