By Ravisankar KV
“The tourism sector has received a substantial boost with a record-breaking direct allocation of ₹6,500 crore, the highest in India. Additionally, indirect investments benefiting tourism have surpassed ₹50,000 crore, providing a strong push for infrastructure, connectivity, and overall tourism development.”
The Gujarat state budget for 2025-26 has placed special emphasis on tourism, with a significant increase of 31% in funding. This enhanced allocation reflects the government’s commitment to strengthening the sector, generating employment opportunities, and improving infrastructure. While presenting the budget, Finance Minister Kanubhai Desai highlighted the crucial role of tourism in economic growth and job creation. He stated that with the development of employment-oriented sectors like tourism, the youth of Gujarat will have additional opportunities in both rural and urban areas. Many jobs will be generated, directly or indirectly, in related industries such as hospitality, transportation, and handicrafts.
To further encourage tourism, the government has proposed the establishment of District Tourism Development Societies in every district of the state. These societies will play a crucial role in identifying and promoting tourism potential in their respective regions. As part of integrated tourism development efforts, the budget outlines the construction of 150 new roads, which will enhance connectivity between key tourist destinations and make travel easier for visitors.
In addition to road connectivity, the government has also focused on expanding and modernizing air travel facilities. The budget includes the development of a Greenfield airport at Dahod, which is expected to boost regional tourism and connectivity. Furthermore, an allocation of ₹210 crore has been set aside for the expansion and upgradation of existing airports in Porbandar, Bhavnagar, Surat, and Vadodara. This expansion aims to accommodate increasing air traffic and improve travel experiences for both domestic and international tourists.
The budget also makes provisions for the construction and development of high-speed corridors, with a total allocation of ₹1,020 crore. Under the Garvi Gujarat High-Speed Corridor Project, the government has announced the development of 12 new high-speed corridors spanning a total distance of 1,367 kilometers. These corridors will significantly reduce travel time between major cities and tourist hubs, thereby making travel within the state more efficient and seamless.
Another major initiative in the budget is the development of two new Greenfield expressways. The first, named the Namo Shakti Expressway, will connect Banaskantha to Saurashtra’s coastal region, specifically linking Deesa to Pipavav. This expressway is expected to enhance accessibility to coastal destinations and promote tourism in Saurashtra. The second major expressway, the Somnath-Dwarka Expressway, will connect Ahmedabad to Rajkot, with an extension to prominent pilgrimage centers such as Dwarka, Somnath, and Porbandar. This initiative will not only improve religious tourism but also boost economic activity in the region.
Recognizing that connectivity plays a vital role in tourism development, the government has also allocated substantial funds for broader infrastructure improvements. The budget includes ₹5,000 crore for road expansion, which will help strengthen links between industrial areas and rural regions, thereby improving accessibility to remote destinations. Additionally, ₹4,000 crore has been allocated for the development of smart cities, which will equip urban centers with modern facilities, further enhancing the travel experience for visitors. To support better living conditions and urban development, an additional ₹3,500 crore has been dedicated to urban housing projects. These investments in infrastructure will not only benefit the tourism sector but also contribute to the overall development of Gujarat’s economy.
Mr. Mulubhai Bera, Minister of Tourism, Cultural Activities, Forest & Environment, and Climate Change, Government of Gujarat, expressed his gratitude to the Chief Minister and Finance Minister for the higher allocation and the importance given to the tourism sector. He stated, ‘With a record-breaking direct allocation of ₹6,500 crore, Gujarat’s 2025-26 budget reaffirms our commitment to making the state a premier global tourism hub. Landmark projects like the Ambaji Corridor and Dharoi Tourism Development will transform our tourism landscape, enhancing infrastructure, connectivity, and visitor experiences.'”
The budget is closely aligned with the vision of Viksit Gujarat 2047, which is a long-term roadmap for the state’s growth and progress. This initiative is part of the broader Viksit Bharat 2047 program, which envisions a prosperous and developed India by 2047. The government has identified eight major sectors for focused development, which include healthcare and nutrition, education and skill development, excellence in art, culture, and sports, women-led development (Nari Shakti), industries of the future such as AI and services, Gujarat as a global tourism hub, agricultural and rural development, and sustainable urban growth. The comprehensive approach taken in this budget ensures that tourism is not seen in isolation but is integrated with the overall economic and infrastructural development of the state.
He further added that, “This budget takes a holistic approach to tourism growth, not just through direct funding but also by strengthening infrastructure, air connectivity, and skill development. With ₹30,325 crore allocated for urban development and expressways like Somnath-Dwarka and Namo Shakti, we are paving the way for seamless travel, boosting both tourism and the state economy.”
The Gujarat government’s vision for tourism is not only about attracting more visitors but also about creating a sustainable ecosystem that benefits local communities and businesses. By investing in improved accessibility, modernizing urban spaces, and upgrading tourism infrastructure, the state is positioning itself as a premier tourism destination. The substantial budget allocations for connectivity projects, smart city development, and airport expansion underscore the importance of tourism in Gujarat’s growth strategy. With these initiatives, the government aims to make Gujarat a model state for tourism, offering diverse experiences ranging from heritage and cultural tourism to coastal and religious tourism, while simultaneously ensuring economic prosperity and job creation for its people.
Direct Allocation to Tourism
The tourism sector has received a substantial boost with a direct allocation of ₹6,500 crore. This investment is earmarked for initiatives such as the Integrated Destination Development Project, the Ambaji Corridor, and the Dharoi Tourism Development Project, all aimed at enhancing tourist infrastructure and experiences across the state.
Indirect Allocations Benefiting Tourism
The budget strategically invests in sectors that indirectly bolster tourism:
Infrastructure Development: An allocation of ₹30,325 crore, marking a 40% increase from the previous year, is designated for urban development. This includes the development of 12 new high-speed corridors and two greenfield expressways, notably the Namo Shakti Expressway (connecting Deesa to Pipavav) and the Somnath-Dwarka Expressway (linking Ahmedabad to Rajkot and extending to key pilgrimage centers). Such projects are poised to significantly enhance connectivity to tourist destinations.
Airport Development: A provision of ₹210 crore is allocated for the development of a greenfield airport at Dahod and the expansion of existing airports in Porbandar, Bhavnagar, Surat, and Vadodara. Improved air connectivity is expected to attract a higher influx of tourists.
Women Empowerment: With ₹15,000 crore allocated to schemes focusing on nutrition, financial independence, and safety, programs like the Namo Lakshmi Yojana and Mukhyamantri Mahila Udyam Yojana aim to empower women. Enhanced participation of women in the workforce, particularly in tourism-related sectors such as hospitality and handicrafts, can enrich the tourism experience.
Healthcare: Investments in healthcare infrastructure and services ensure a healthier population and enhance medical tourism prospects.
Agriculture and Rural Development: Allocations for agriculture, irrigation, and rural development can promote agri-tourism, offering tourists authentic rural experiences and supporting local economies.
Education and Skilling: Investments in education and skill development ensure a competent workforce, essential for delivering quality services in the tourism sector.
Comparative Perspective
The direct allocation of ₹6,500 crore to tourism in Gujarat’s budget is notably higher than the central government’s allocation of ₹2,541.06 crore for the sector. This substantial investment underscores Gujarat’s commitment to positioning itself as a premier tourism hub. Additionally, states like Uttar Pradesh and Maharashtra have also recognized the potential of tourism, reflecting in their respective budgetary provisions for 2025-26.
Gujarat’s 2025-26 budget reflects a comprehensive strategy to elevate the state’s tourism sector by integrating direct investments with supportive allocations in interconnected sectors. This holistic approach is anticipated to foster sustainable economic growth, generate employment opportunities, and pave the way for achieving the ‘Viksit Gujarat @ 2047’ vision.
Gujarat’s Current Position in India Tourism
Foreign tourist arrivals in India reached 19.25 million in 2023, marking a 124.11% increase from 8.59 million in 2022. In domestic tourism, Uttar Pradesh (478.53 million) and Tamil Nadu (286.01 million) led in visitor numbers, while Maharashtra (3.39 million) and Gujarat (2.81 million) recorded the highest foreign tourist arrivals.
Gujarat’s consistent efforts in branding and marketing have significantly boosted both domestic and international tourist arrivals. Notably, Gujarat has been a key source market for domestic tourism in many South Indian and Himalayan states for the past two decades.
In 2013, Gujarat was not among the top 10 Indian states in tourism rankings. However, through strategic initiatives, the state has now emerged as a leading destination for foreign tourists. In 2022, Gujarat topped the list with 1.78 million foreign tourists, and in 2023, it welcomed 2.81 million foreign visitors, ranking just behind Maharashtra (3.39 million).
On the domestic tourism front, Gujarat welcomed 178.07 million Indian tourists, securing the 6th position among Indian states. The state has improved its domestic tourism ranking by three positions over the last decade and is now aiming for the top spot in the next five years, surpassing Uttar Pradesh and Tamil Nadu.
