The Gujarat state budget for 2025-26 has made an unprecedented allocation to the tourism sector, marking the highest-ever investment by any Indian state. With a 31% increase in tourism funding, the government has demonstrated a strong commitment to strengthening infrastructure, generating employment, and elevating Gujarat’s status as a premier tourism destination. Finance Minister Kanubhai Desai, while presenting the budget, underscored the pivotal role of tourism in economic development. He emphasized that the expansion of employment-oriented sectors like tourism would create vast job opportunities across both rural and urban landscapes, benefiting industries such as hospitality, transportation, and handicrafts.
A Strategic Approach to Tourism Development
In a significant move, the Gujarat government has proposed the establishment of District Tourism Development Societies in every district. These societies will identify tourism potential, enhance local attractions, and ensure sustainable growth. Recognizing the importance of connectivity in boosting tourism, the budget outlines the construction of 150 new roads that will facilitate seamless travel between key tourist destinations.
Air travel is another focus area, with the budget allocating ₹210 crore for developing a greenfield airport in Dahod. Additionally, existing airports in Porbandar, Bhavnagar, Surat, and Vadodara will undergo expansion and modernization to accommodate the growing influx of domestic and international tourists.
Major Infrastructure Investments for Tourism Growth
One of the most ambitious projects in the budget is the allocation of ₹1,020 crore for high-speed corridors under the Garvi Gujarat High-Speed Corridor Project. The development of 12 new high-speed corridors covering 1,367 kilometres will significantly reduce travel time between major cities and tourist hubs, enhancing accessibility and convenience for visitors.
Two major greenfield expressways have been announced.
Namo Shakti Expressway: This expressway will connect Banaskantha to the coastal region of Saurashtra, linking Deesa to Pipavav. It is expected to improve access to Gujarat’s coastal destinations, fostering growth in maritime and beach tourism.
Somnath-Dwarka Expressway: Connecting Ahmedabad to Rajkot and extending to major pilgrimage centres such as Dwarka, Somnath, and Porbandar, this expressway will enhance religious tourism and stimulate economic activity in the region.
Broader Infrastructure Enhancements Benefiting Tourism
Recognizing that infrastructure development is critical to tourism, the Gujarat government has committed ₹5,000 crore for road expansion projects, ensuring better connectivity between industrial and rural areas. Additionally, ₹4,000 crore has been allocated for smart city development, integrating modern amenities to enhance the overall visitor experience. To further improve urban living conditions and support the hospitality sector, ₹3,500 crore has been earmarked for urban housing projects.
This strategic investment aligns with the vision of Viksit Gujarat 2047, a comprehensive roadmap for the state’s long-term progress, which is part of the broader Viksit Bharat 2047 initiative. The government has identified eight major sectors for focused development, including healthcare, education, culture, women empowerment, futuristic industries like AI, and positioning Gujarat as a global tourism hub.
Direct and Indirect Investments in Tourism
The tourism sector has received a direct allocation of ₹6,500 crore, a landmark investment aimed at enhancing infrastructure and visitor experiences. The Key projects under this allocation are the Integrated Destination Development Project, Ambaji Corridor, and Dharoi Tourism Development Project.
In addition to direct funding, several indirect allocations will significantly bolster tourism growth:
Infrastructure Development: With a ₹30,325 crore allocation (a 40% increase from the previous year), this investment will support road networks, high-speed corridors, and expressways, directly benefiting tourism accessibility.
Airport Expansion: The ₹210 crore allocated for Dahod’s new airport and the expansion of Porbandar, Bhavnagar, Surat, and Vadodara airports will improve air connectivity, attracting a higher volume of tourists.
Women Empowerment: ₹15,000 crore has been set aside for programs like Namo Lakshmi Yojana and Mukhyamantri Mahila Udyam Yojana, which will foster female participation in tourism-related industries such as hospitality and handicrafts.
Healthcare and Medical Tourism: Investments in healthcare infrastructure will contribute to the rise of medical tourism in the state.
Agriculture and Rural Development: Investments in agriculture and irrigation will promote agri-tourism, offering visitors an authentic rural experience and boosting local economies.
Education and Skill Development: A skilled workforce is essential for a thriving tourism industry, and investments in education and training programs will ensure high-quality service delivery.
Gujarat’s Unmatched Commitment to Tourism
The ₹6,500 crore direct allocation to tourism is significantly higher than the ₹2,541.06 crore allocated by the central government for the sector, underscoring Gujarat’s aggressive push to become India’s leading tourism hub. Other states, including Uttar Pradesh and Maharashtra, have also recognized the potential of tourism in their budget plans, but Gujarat’s allocation remains unmatched in scale and ambition.
The Gujarat government’s vision for tourism is not just about increasing visitor numbers but about building a sustainable and inclusive tourism ecosystem. By integrating tourism with broader economic and infrastructural development, the state sets a benchmark for others to follow. With strong investments in connectivity, modern urban spaces, and enhanced tourism infrastructure, Gujarat is poised to emerge as a model destination, offering everything from heritage and cultural tourism to coastal and pilgrimage tourism. These efforts are expected to drive economic prosperity and create thousands of new jobs, ensuring a thriving future for the state’s tourism industry.
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