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Union Budget 2025: Reviving Consumer Confidence and Boosting Economic Growth
Amit Jatia
Chairperson, Westlife Foodworld, (McDonald’s India – West & South)
“The upcoming Union Budget will be an interesting opportunity for the government to bolster customer confidence and revive discretionary spending, two essential pillars of overall economic growth. For some time now, the retail and the dining out sectors have been grappling with softened consumer demand, and we expect some targeted policy interventions that can accelerate recovery.
One such measure will be allowing input tax credit for the QSR industry. It can be transformative by enabling businesses to reclaim taxes on essential inputs as the freed up capital can be used by companies to reinvest in growth. I believe that this can significantly propel expansion, encouraging entrepreneurship, and most critically create jobs at scale. We are hopeful that at a time when the government is investing heavily in job creation initiatives, a simple but powerful step like input tax credit can make a significant difference in empowering businesses to do their part.
I am certain that the government will continue to focus on job creation, skill development, and improving the ease of doing business. It will not only further enhance the sector’s contribution to the economy but will also strengthen India’s journey towards self-reliance. In my view, with supportive fiscal measures and investments in digital infrastructure, the government can foster a business environment that aligns customer centric reforms with growth oriented policies, paving the way for a future-ready economy.”
Union Budget 2025: Tourism Sector's Expectations for Sustainable Growth
Rajesh Magow
Co-founder & Group CEO, MakeMyTrip
“The travel and tourism sector is a vital pillar of India’s economy, contributing over 9% to employment and supporting 40 million jobs – a figure set to exceed 62 million in the next decade. The sector’s role in driving economic inclusivity, empowering communities, and boosting economy at the grass root level makes it indispensable to the next chapter of India’s growth story.
The sector is outpacing the overall economy, with domestic tourism growing at a double-digit rate, driven by rising incomes, a burgeoning middle class, and a preference for travel experiences. Government investments in roads, airports, and railways have been game-changers, enabling faster travel and unlocking new destinations. Long weekends are now synonymous with travel – a testament to the sector’s growing momentum.
Ahead of the Union Budget, we urge the government to bolster this growth with targeted measures. This includes granting the long-requested industry status, which will further encourage investment and development in the hospitality sector. Additionally, allowing GST credit for hotel construction and rationalizing GST rates will help reduce the overall cost of accommodation. These measures will further stimulate domestic tourism and positively impact inbound tourism. The industry would be delighted if the Honourable Finance Minister allocates resources for an international campaign under the Incredible India initiative.
The homestay sector is growing well in India, and this burgeoning sector needs support. The government's clarification in the last budget, stating that any rental income earned by the owner of residential house property shall be treated as ‘Income from House Property’ instead of ‘Business Income,’ can adversely impact the growth of homestays. We request the Honourable Minister to review this point.
Besides, there are couple of other operational, and disparity related GST issues faced by Online Travel Agents (OTAs). Mandatory state-wise GST registration with a physical presence in every state is adding to the administrative costs and management overhead unnecessarily. Since the nature of OTAs business is online, if registration in different states can be allowed using their central head office address will help in streamlining operations, reduce costs, and improve efficiency. Moreover, this requirement will help put Indian OTAs on level playing field against international online players who are not bound by similar rules.
Similarly, there is an existing disparity in the GST charge for customers booking a non-AC bus through an online booking platform where customers are charged 5% GST, while direct bookings made with the bus operator there is no GST charge. This inconsistency undermines the objective of the Digital India initiative and is against the spirit of digital India.
The government has laid a strong foundation – this budget is an opportunity to propel the sector into its next phase of growth.”
A Roadmap for Success: Boosting the Hotel, Tourism, and Travel Industry
Rajan Bahadur
CEO of Tourism and Hospitality Skill Council (THSC)
The hotel, tourism, and travel industry can greatly benefit from a budget that emphasizes both immediate relief and long-term growth. Reduced GST rates for hospitality and travel services, infrastructure upgrades for tourism hotspots, and financial support for sustainable hotel and travel projects can create an ecosystem for robust industry growth. For the travel sector specifically, enhanced connectivity through investments in transport infrastructure—such as better roads, railways, and regional airports—will significantly boost accessibility to lesser-explored destinations. Additionally, increased allocation for skill development, apprenticeships, and digital transformation will empower the workforce, ensuring the industry is prepared for future challenges and opportunities. While significant work is already underway in these areas, there is still a road ahead to fully unlock the potential of this dynamic industry.
Transforming India's Hospitality Sector: Manoj Bhat's Budget Expectations
Manoj Bhat
MD & CEO Mahindra Holidays & Resorts India Limited
“As we look forward to the Union Budget 2025, we are optimistic about transformational initiatives that will further propel India’s hospitality sector to new heights. The sector holds immense potential, as evidenced by an impressive occupancy rate of 68% in the last financial year—the highest in a decade—driven by a surge in both leisure and business travel. However, despite over 230 million international arrivals recorded in the Asia-Pacific region in 2023, India accounted for just 7.2 million, highlighting significant untapped opportunities. To capitalize on this potential, continued investments in robust infrastructure development are essential. We anticipate that the Union Budget will prioritize policies that accelerate infrastructure growth, streamline approvals, and encourage private sector participation. Granting the industry full sector status could be an effective way to fast-track financing and approvals, and strengthen India’s position as a global tourism hub.
Policies which will foster innovation in sustainable tourism and introducing incentives for adopting green practices, which will not only benefit businesses but also ensure long-term environmental stewardship could add another dimension to the progress of the industry.”
India's Hospitality Sector: Challenges and Opportunities for Growth
Mehul Sharma,
Founder & CEO, Signum Hotels and Resorts
The hospitality sector is a cornerstone of India's service economy, contributing approximately 9% to the GDP and employing over 43 million people. In 2023, the sector witnessed a robust recovery, with domestic tourism growing by 30% and international arrivals rebounding by 25%. However, financing remains a significant challenge, especially for small and mid-sized businesses. Currently, interest rates for hospitality loans range from 10.75% to 22.50%, depending on the lender and borrower’s credit profile. For instance, HDFC Bank offers business loans with interest rates starting at 10.75%, while other financial institutions may charge higher rates based on various factors. Lowering these rates to a more affordable range, such as 7% to 8%, could significantly reduce the financial burden on these businesses, fostering growth and stability.
Additionally, the sector faces a talent gap, with nearly 30% of hospitality positions unfilled due to a lack of trained professionals. Investing in skill development programs is essential to bridge this gap and enhance service quality. Furthermore, infrastructure upgrades, particularly in Tier-II and Tier-III cities, can boost the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment, which currently contributes 15% to the overall tourism revenue. Incentivizing sustainable and energy-efficient practices in hotels is also crucial, aligning the sector with global trends and reducing operational costs. Presently, the adoption of renewable energy in hospitality operations is at just 10%; government incentives could help scale this up, contributing to India's commitment to achieving net-zero emissions by 2070.
Budget Expectations for the F&B Industry: Simplification and Growth
Ankit Sahni,
Founder of The Hazelnut Factory
I believe the points below will greatly affect how consumers behave and how businesses operate in the food and beverage industry.
Income Tax Slab Rebate: Lower taxes or higher refunds will increase income for low earners.
Reduced GST on Bakery Goods: Lowering the tax on cakes and pastries will boost sales.
Uniform Tax Rate for Food and Beverages: One tax rate for all food will simplify business and promote fairness
These expectations reflect a desire for a more supportive and growth-oriented environment in the F&B industry.
Pre-Budget Expectations: Boosting Sustainable Tourism and Infrastructure Development
Sanat Hooja,
Partner - Machan Resorts LLP.
As the upcoming budget approaches, we at Machan Resorts LLP anticipate an increase in investments focused on enhancing infrastructure that improves connectivity and accessibility, especially in emerging travel destinations.
Furthermore, we stress the critical need for sustainable tourism initiatives that promote environmentally responsible practices while aligning economic growth with ecological stewardship.
The government could consider leasing heritage properties, such as havelis, castles, forts, and palaces, through Public-Private Partnerships. This initiative would not only boost the tourism sector but also provide visitors with an immersive experience of the rich cultural heritage represented by these historic monuments.
Budget 2025: A Catalyst for Sustainable Growth in India's Hospitality Sector
Mateen Khan
Co Founder, Monday Hotels
The upcoming budget presents a significant opportunity for India's hospitality sector, a cornerstone of the nation's economy. Given the pivotal role the service sector plays in driving GDP, it is imperative that sustainability takes center stage in the 2025 budget. By championing innovative and sustainable practices, India has the potential to further solidify its position as a global leader in hospitality. At *Monday Hotels* , we view this as a prime moment to propel sustainable growth, advocating for policies that will benefit the entire sector.
To stimulate growth, key strategies include reducing GST rates to make hotel stays and dining more affordable, and revising tax policies to attract a broader spectrum of guests. The government should also prioritize the development of hotels in experiential destinations and hidden gems across India, particularly in underserved regions. Offering incentives for green infrastructure and technology—such as solar energy, water recycling systems, waste management, and IoT smart meters—will drive sustainability while reducing operational costs.
Additionally, simplifying regulatory processes and fostering training programs in collaboration with hospitality institutions will address the post-COVID skills gap and enhance workforce capabilities. These policies will catalyze long-term growth, elevate India’s global hospitality standing, and create a more sustainable, competitive industry.
At Monday Hotels , with our tagline _"We Value You!"_ , we are committed to leveraging these opportunities to drive both innovation and sustainability in the hospitality sector, benefitting both our country and the planet.
Budget 2025: Restaurant Industry's Expectations and Demands
Sandeep Jain,
Founder & MD, Desi Masala
Over the past few years, the restaurant industry has not only contributed substantially to economic growth but has also been a steadfast source of employment generation. As we move closer to the Union Budget 2025, the restaurant sector has high expectations from the government. One critical aspect that needs urgent attention has been reinstating input tax credit (ITC) for the industry. The budget needs to revisit the input tax credit on GST for the sector as this would help reduce operational costs and improve profitability. Other key areas include tax incentives, easier credit access, rationalising licences and regulations, and other policy support to promote business growth. Another prominent demand of the restaurant sector is granting industry status as this will enable them to get financial benefits such as loans at lower interest rates, special schemes, subsidies, fast track clearance processes for licenses etc. An industry status to the food service sector will also encourage entrepreneurship. Overall, these measures will definitely boost sustained growth of the restaurant industry, which contributes significantly to economic activity.
Union Budget 2025: Expectations from the Hospitality Sector
Col. Manbeer Choudhary,
CMD, Noormahal Group
The hospitality sector in India plays a crucial role in job creation and is one of the largest contributors to the country’s economy. The Union Budget 2025 could be pivotal in enhancing the industry and significantly contributing to the vision of a $3 trillion tourism GDP by 2047. One of the key expectations from the government is the abolition of the 18% GST category for hotels with room rates exceeding Rs 7,500, merging it with the 12% GST category to stimulate domestic and inbound tourism. Moreover, one of the longing demands is granting industry status to the hospitality sector, as this recognition could lead to improved access to finance, regularized policies, and a more strategic approach to tourism development. The special allocation for infrastructure development especially in tier II and tier III cities can boost tourism in the regional areas while also generating employment opportunities for the youth in their native place.
Charging zero GST or receiving a GST refund for foreign guests—would foster increased inbound tourism and enhance global competitiveness. Furthermore, incentives encouraging eco-friendly practices and dedicated investment in green tourism infrastructure can pave the way for a sustainable future. By aligning with the United Nations Sustainable Development Goals, the policies for green tourism can effectively serve the conscious travelers in the era focussed on sustainability. Additionally, initiatives focusing on digital innovation and trends can transform the hospitality sector by integrating the latest technologies and AI, enhancing travelers' experiences.
Budget 2025: Hospitality Sector's Wish List
Akash Agarwal,
Owner of Rajasthali Resort & Spa
For the hospitality sector, Budget 2025 should aim for simplified taxation, increased support for startups, investment incentives, promotion of sustainable practices, and measures to boost employment. These changes would foster growth, reduce compliance costs, attract investments, and create a more supportive business environment, enhancing the overall development of the sector.
Indian Hospitality Industry: Expectations from Union Budget 2025-26
Shamsher Dewan,
Senior Vice President and Group Head, Corporate Ratings, ICRA Limited.
Post Covid, the Indian hospitality industry recovered, and the demand rebounded sharply in recent years. Factors like increasing domestic tourism, business travel, growing demand from MICE and weddings and enhanced connectivity to tier-2/3 cities supported the growth for hoteliers. ICRA expects the Union Budget 2025-26 to focus on measures supporting tourism and infrastructure investments, ease of doing business, enhanced connectivity and accessibility, and rationalization of tax rates. With the pace of supply growth continuing to lag demand, policy frameworks aiding favourable financing terms shall support inventory addition to meet the rising demand.
Union Budget 2025: Expectations for a Boost to the Snacking Sector
Vikram Agarwal,
Managing Director, Cornitos
With the Union Budget 2025, we are optimistic about measures to boost the snacking sector through tax rationalization, incentives for domestic manufacturing, and streamlined export processes. Investments in improved farming practices, renewable energy initiatives, and agricultural infrastructure can create a robust ecosystem for food processing, fostering long-term growth for homegrown brands like Cornitos while enhancing global competitiveness.
Union Budget 2025: Expectations for the Hospitality Sector
Vishal Kamat,
Executive Director and Chairman of CII Maharashtra Chapter
1. What are your main expectations from the Union Budget 2025 for the hospitality sector?
Our hopes for the Union Budget 2025 revolve around meaningful policy reforms and strategic incentives to stimulate growth. While we applaud the government’s hefty investments in infrastructure, the hospitality sector needs more than just highways and airports. For instance:
● Modernized Visa Policies: Simplifying visa processes and establishing visa-free travel agreements with friendly nations could position India as a global transit hub.
● Simplified Taxation: Streamlining GST and consolidating multiple tax heads would go a long way in easing operational burdens.
● Reform Archaic Laws: Updating outdated regulations would align the sector with modern business needs.
● Speedy Dispute Resolution: A fast-tracked judicial process for resolving disputes would ensure smoother business operations.
These changes could pave the way for a thriving, globally competitive hospitality industry.
2. How do you think the government’s support for the tourism industry will impact the growth of hospitality businesses like KHIL?
The government’s support for tourism, though indirect, has been impactful. Hosting global events like the G20 has spotlighted India’s potential. As part of the CII G20 initiative, I’ve witnessed how these efforts amplify tourism and hospitality.
States like Rajasthan and Gujarat have set benchmarks by hosting vibrant festivals and cultural events. Such initiatives boost local economies—from tea vendors to transport operators to retail businesses. Even something as small as toothpaste sales can surge during these events!
If the government continues promoting tourism, it will create a ripple effect—generating demand, driving consumption, and ultimately benefiting hospitality businesses like ours.
3. What specific tax incentives or policy changes would you like to see for hotel investments and modernization?
Rather than seeking handouts, we’re rooting for reforms that make doing business smoother:
● Simplify Complex Laws: Some regulations need to be scrapped or updated, while others—such as those promoting sustainability—must be introduced.
● Ease of Doing Business: India’s global EoDB ranking could be improved through focused reforms, attracting more investors to the hospitality sector.
● Environment-Friendly Policies: Supporting initiatives like recycling and single-use plastic bans helps us align with global sustainability standards.
These changes will enable hotels to modernize while fostering long-term growth.
4. Do you see any initiatives in the budget that could promote sustainability within the hospitality sector, such as EV infrastructure?
The hospitality sector doesn’t need grand incentives to embrace sustainability—we’re already on it! What we need is for the government to make it easier for us to adopt eco-friendly practices. For instance:
● Boosting EV infrastructure.
● Incentives for green buildings and renewable energy use.
Our industry is hardworking and adaptable. If the government provides a conducive environment, we’ll gladly take the lead in sustainability.
5. What are your thoughts on how the budget could improve ease of doing business for hospitality companies?
The government can make life easier for hospitality businesses in several ways:
● Simplify TDS and TCS: Tax deductions and collections at source need to be rationalized for better compliance and efficiency.
● Promote Women and Youth Participation: Policies encouraging diversity and inclusivity will energize the workforce.
● Encourage Innovation: Supporting R&D, especially in environmentally sensitive areas, would drive sustainable growth.
● Circular Economy Initiatives: We consume a lot, but we’re equally committed to recycling. Government policies promoting waste reuse could revolutionize the sector.
Overall, the budget should continue its focus on sustainability, innovation, and inclusivity while addressing long-standing operational hurdles.
Lords Hotels & Resorts' Budget Expectations: Recognizing Hospitality as a Priority Sector
Pushpendra Bansal,
COO, Lords Hotels & Resorts
Lords Hotels & Resorts strongly believes that tourism and hospitality, contributing nearly 10% of India’s GDP, should be recognized as a priority sector.
The government should issue a Gazette notification to grant industry status to the hospitality sector, ensuring that all states uniformly implement this policy. This recognition would enhance infrastructure, providing multiple benefits: it would incentivize developers, reduce the financial strain on new projects, and significantly strengthen the industry. Such measures are vital for boosting GDP, generating employment, and increasing foreign exchange earnings.
Currently, the diverse services offered by hotels and restaurants are subject to varying GST rates. A uniform GST rate of 12% across all service categories would simplify taxation, enhance transparency, and create a more favorable environment for the hospitality sector.
Mitron Cafe's Budget Expectations: GST Relief and Easier Operations for Hospitality
Gaurav Shetty,
Director at Peninsula Hospitality.
We hope the 2025 Union Budget focuses on reducing GST for dining and easing operational policies for the hospitality sector. These changes would allow Mitron Cafe to enhance its dining experiences, introduce innovative culinary concepts, and expand its presence and focus on delivering innovative menus that cater to a diverse and evolving customer base.
2025 Budget Expectations: Boosting Tourism Recovery, Infrastructure, and Sustainability
Sandeep Singh,
Founder of Rubystone Hospitality
"We expect the 2025 budget to focus on tourism recovery, infrastructure, and sustainability, with measures like tax incentives, innovation funding, and green initiatives. This will help boost domestic and international travel, drive growth, enhance guest experiences, and create a stable, sustainable hospitality sector that is ready to meet evolving consumer needs."
Union Budget 2025: Key Expectations for the Tourism and Hospitality Sector
Akaal Manchanda,
Founder and Director Zuper Hotels & Resorts
The recent travel boom presents a golden opportunity, but leveraging it to its fullest requires crucial support from the government. To foster sustained growth in the sector, we call on the government to invest in essential infrastructure development, reevaluate the existing tax framework, increase funding for tourism promotion, enhance digital infrastructure, and prioritize initiatives that advance sustainability.
GST Reforms: A Key Expectation for the Restaurant Sector in Union Budget 2025
Debaditya Chaudhury,
Managing Director- Chowman, Oudh 1590 & Chapter 2
"One of the most pressing issues is the lack of allowance for GST input tax credit in our restaurant sector. This long-standing challenge continues to increase operational costs, putting additional strain on businesses striving to recover and grow post-pandemic. Allowing input tax credit on GST would not only reduce financial burdens but also promote fair competition and transparency across the sector.
Furthermore, the Reverse Charge Mechanism (RCM) scheme adds another layer of complexity and financial strain on restaurant businesses. If the government could consider withdrawing the RCM scheme for our industry, it would provide much-needed relief and allow us to redirect resources toward innovation, job creation, and improving customer experiences.”
Union Budget 2025: A Recipe for Growth - Expectations for India's Restaurant and Food Delivery Sector
Saurabh Wadkar,
Founder, Rooted
"The Union Budget 2025 offers a golden opportunity to uplift India’s restaurant and food delivery sector, especially for small businesses that are the heart of this industry. Reinstating Input Tax Credit (ITC) under GST could provide much-needed relief by lowering operational costs and boosting profitability for countless restaurants and cloud kitchens.
A reduction in GST rates to 12% for restaurants and delivery services would make pricing more competitive and align with global standards, giving businesses a stronger edge. Recognizing ghost kitchens and food delivery ventures with infrastructure status could open doors to affordable loans and tax benefits, helping entrepreneurs thrive in smaller cities and towns.
Encouraging the adoption of technology through incentives could empower small players to streamline operations, cut costs, and grow sustainably. Additionally, celebrating regional cuisines through culinary tourism initiatives would not only boost local restaurants but also highlight India’s incredible food heritage.
With thoughtful measures like these, the Budget could transform the sector, creating opportunities for small businesses to flourish and strengthening their role as drivers of jobs, culture, and economic growth."
Simplifying Support for MSMEs: The Need for a Single Window Support System
Gagan Anand,
Founder, Scuzo Ice ‘O’ Magic, India’s Fastest-Growing Gelato and Live-Popsicle Brand
"MSMEs have many hopes from the upcoming budget. Currently, the government has many policies to support the MSMEs including support in funds, however the ground reality is not as simple as it is on paper. The whole process of getting the support from the government via these policies is a very lengthy process, it shows that these policies are there just for the sake of showing the effort as the entrepreneurs and Private Limited companies are not able to avail the policy even after fulfilling the required criteria. I suggest that if the government actually wants to support the MSMEs they should make a Single Window Support System (एकल खिड़की) so the process is more smooth and easy to use. The ease would further enable the business section to in turn support the economy of the company by creating more employment."
Union Budget 2025: Hospitality Sector's Wish List for Sustainable Tourism and Growth
Tushar Parihar
Founder, Kaner Bagh - A Heritage Boutique Hotel (Hospitality and MSME Sector)
The Union Budget 2025 offers an opportunity to strengthen the hospitality sector and support sustainable tourism. We request the government to prioritize tax incentives for heritage property restoration, enabling us to preserve cultural treasures. Improved infrastructure and last-mile connectivity to tier-2 cities like Udaipur would boost tourist arrivals. Additionally, a reduction in GST for boutique hotels would make India a competitive global destination.
Sustainability initiatives deserve attention, with grants for eco-friendly practices like solar power and water conservation. Lastly, investments in skilling programs for hospitality professionals will enhance service standards and create local employment.
Union Budget 2025: GST Flexibility and Food Inflation Relief for Restaurant Owners
Joy Singh,
Co-partner, Yeti-The Himalayan Kitchen
"Restaurant owners should be given the option to choose between the 5% GST scheme without input tax credit and the 18% GST scheme with input tax credit. This flexibility would particularly benefit larger establishments, such as those operating in malls, by allowing them to optimize their tax liabilities based on their unique business models. Additionally, addressing food inflation is crucial, as rising ingredient costs directly impact both restaurant operations and consumer affordability. Strategic measures to curb food inflation would ensure a more stable and sustainable environment for the food service industry."
Union Budget 2025: Enhancing India's Tourism and Hospitality Sector through Policy Refinement
Balaji M,
CEO of Clarks Exotica Convention Resort and Spa, Clarks Exotica Convention Resort and Spa
"As we approach the Union Budget, there is an opportunity to refine policies that can further boost India's tourism and hospitality sector. One key area is the GST rate on hotel stays, which currently stands at 18%. While this rate aligns with global standards in some respects, it inadvertently makes domestic travel less competitive, encouraging more Indians to travel abroad. A relook at this structure could significantly enhance the affordability and appeal of domestic tourism.
Additionally, India’s Meetings, Incentives, Conferences, and Exhibitions (MICE) sector holds immense potential but is hindered by GST charges on events. Exempting MICE events from GST or offering incentives for domestic and international organizers to host events here can position India as a global leader in this space.
Promoting hyper-local tourism is another area where concerted efforts could yield excellent results. Initiatives such as highlighting unique regional experiences, like Karnataka’s coffee trails, Kerala’s houseboat getaways, or Rajasthan’s rural village stays, can create awareness and encourage exploration. These experiences not only attract visitors but also provide economic opportunities for local communities.
Finally, increased budget allocation for marketing India’s rich cultural and natural heritage to global audiences can drive inbound travel. Campaigns similar to 'Incredible India,' but with a sharper focus on the diversity of hyper-local offerings, could inspire both international and domestic travelers.
We’re confident that thoughtful policy changes in the upcoming budget can further strengthen India's position as a preferred travel destination while fostering sustainable growth for the tourism and hospitality industry."
Budget 2025: A Boost to Hospitality and Guest Experience
Kush Kapoor,
CEO, Roseate Hotels & Resorts
The Budget 2025 includes initiatives that are poised to indirectly benefit the hospitality sector and enhance the overall guest experience. One of the standout measures is the provision of stipend for interns under government funding, which will play a crucial role in attracting fresh talent and strengthening our workforce. We anticipate that it will significantly improve our recruitment efforts and foster a skilled and dynamic team.
Additionally, the government’s commitment to supporting farmers is a welcomed step that will improve the quality and availability of fresh, sustainable produce. This is critical for maintaining high standards in the hospitality supply chain, from hygiene to food and beverage offerings. With an increasing focus on personalized guest experiences, we believe this focus on natural farming aligns with the growing demand for organic, locally-sourced ingredients, allowing us to craft exceptional, bespoke culinary experiences for our guests.
In terms of taxation policy, we are optimistic about a leaner structure and look forward to more details that will help streamline operations and improve profitability. The provision of a set salary for first-time employees is another intriguing aspect, though it remains unclear whether this applies to the hospitality industry, though this would certainly enhance our recruitment efforts.
As we move into 2025, the hospitality sector’s ability to provide bespoke, high-quality experiences is central to our growth. The Budget’s focus on supporting sustainable practices, workforce development, and potential tax incentives will undoubtedly play a significant role in helping us elevate the guest experience at Roseate Hotels and Resorts.
Budget 2025: Enhancing Growth and Resilience in the FMCG Sector
Mr. Vikram Marwaha,
Joint Managing Director, DRRK Foods
“As a brand committed to delivering premium Basmati rice to Indian households, we have key expectations from the government to foster growth and resilience in the FMCG sector. In the upcoming budget, we strongly urge the government to reduce corporate tax rates, which will provide financial flexibility to invest in advanced technologies, enhance production capabilities, and expand the market presence. Additionally, we hope the government will consider lowering personal income taxes or ensuring no additional burden on individuals. Increased disposable income in the hands of consumers plays a pivotal role in driving demand for quality products. A supportive tax structure not only boosts consumption but also encourages people to invest in healthier food choices, aligning with national health goals. A balanced budget that supports both corporate growth and consumer purchasing power will pave the way for sustained economic progress. We look forward to policies that foster a robust ecosystem for businesses and create value for consumers.”
Union Budget 2025: Unlocking Tourism's Transformative Potential for India's Growth
Chirag Agrawal,
Co-Founder, TravClan
"This year’s budget is an opportunity to view tourism as a long-term investment with transformative potential. Tourism is one of the largest job creators, capable of generating millions of opportunities across sectors like hospitality, transportation, and technology, while also making a significant contribution to India’s GDP.
Innovations like DigiYatra have already improved the travel experience, creating a strong base for further advancements. With the right investment, technology beyond airports could unlock new efficiencies and modernize the tourism ecosystem in meaningful ways.
By boosting local economies, celebrating India’s rich cultural heritage, and strengthening its position as a global destination, the 2025 budget could foster sustained growth in this high-impact sector."
Union Budget 2025: Boosting Tourism through GST Reforms and Sustainability
Aditya Sanghi,
CEO, Hotelogix
"We must prioritize digitization and sustainability to make India a $3 trillion tourism economy by welcoming 100 million international visitors annually. We strongly encourage the government to eliminate the 18% GST rate applied to hotels charging over Rs 7,500 per night and to combine it with the 12% GST rate. Additionally, hotels must be allowed to charge zero GST or receive a GST refund for foreign guests. This adjustment would help boost domestic and inbound tourism."
Union Budget 2025: F&B Sector's Expectations for Simplification and Growth
Aji Nair,
CEO at Mirah Hospitality
"As the Union Budget 2025 approaches, the F&B sector anticipates measures to address food inflation, rising costs, and complex tax structures on alcohol and beverages. A progressive framework to simplify policies and drive sustainable growth is crucial. Restoring GST Input Tax Credit and revisiting the GST notification on commercial leases are essential to ease financial pressures and focus on innovation and long-term growth."
Union Budget 2025: A Call to Action for Sustainable Food Systems and Plant-Based Innovation
Abhishek Sinha
Founder, GoodDot
As someone deeply connected to the food processing and plant-based protein sectors, I believe the recent wildfires in LA and other extreme climate events are stark reminders of the urgent need to prioritize sustainability in every industry. The Union Budget presents a vital opportunity to promote environmentally sustainable sectors like plant-based foods, which significantly reduce the environmental footprint compared to traditional animal agriculture.
One crucial step would be to rationalize GST on plant-based foods, aligning it with the lower rates on traditional meat products. This would make sustainable, health-conscious options more accessible and encourage consumer adoption. Promoting exports of plant-based products by incentivizing value-added processing of agricultural produce is another important move. This could position India as a global leader in sustainable food exports while boosting rural livelihoods.
A dedicated Production-Linked Incentive (PLI) scheme for plant-based proteins would be a transformative policy, attracting investments, fostering R&D, and creating jobs in this fast-growing sector. Additionally, the food processing industry requires enhanced infrastructure, especially in rural areas, to reduce food wastage and add value to our vast agricultural output.
Startups and MSMEs in these sectors also need simplified compliance processes and better access to affordable credit to thrive and innovate. With bold measures, this Budget can pave the way for a more sustainable, resilient future, addressing urgent climate challenges while positioning India as a leader in plant-based innovation and food tech.
Union Budget 2025: A Recipe for Growth - Revitalizing India's Restaurant and Food Delivery Sector
Saurabh Wadkar,
Founder, Rooted – a gourmet Indian meal subscription service
"The Union Budget 2025 offers a golden opportunity to uplift India’s restaurant and food delivery sector, especially for small businesses that are the heart of this industry. Reinstating Input Tax Credit (ITC) under GST could provide much-needed relief by lowering operational costs and boosting profitability for countless restaurants and cloud kitchens.
A reduction in GST rates to 12% for restaurants and delivery services would make pricing more competitive and align with global standards, giving businesses a stronger edge. Recognizing ghost kitchens and food delivery ventures with infrastructure status could open doors to affordable loans and tax benefits, helping entrepreneurs thrive in smaller cities and towns.
Encouraging the adoption of technology through incentives could empower small players to streamline operations, cut costs, and grow sustainably. Additionally, celebrating regional cuisines through culinary tourism initiatives would not only boost local restaurants but also highlight India’s incredible food heritage.
With thoughtful measures like these, the Budget could transform the sector, creating opportunities for small businesses to flourish and strengthening their role as drivers of jobs, culture, and economic growth."
Union Budget 2025: Hospitality Sector's Hopes for Reduced GST Rates and Sustainable Practices
Ashwni Kumar Goela,
Vice President Operations - Radisson Blu Plaza Delhi Airport & Area General Manager - Radisson Hotel Group, South Asia
We’re hoping this budget brings reduced GST rates for hospitality and support for sustainable practices. These changes would help us create better guest experiences, embrace eco-friendly initiatives, and stay competitive, all while contributing to the growth of tourism and hospitality in India.
Union Budget 2025: Hospitality Sector's Expectations for Sustainable Growth and Development
Rajat Sethi,
Cluster General Manager, Raffles and Fairmont Jaipur
We are optimistic about the upcoming Union Budget 2025 and look forward to measures that can further boost the hospitality sector. Support for sustainable hospitality, tax benefits for the luxury segment, and enhanced infrastructure development will be key to driving growth. Additionally, initiatives to promote skill development and employment in the hospitality industry will strengthen the sector and contribute to the economy. We hope the budget prioritizes these areas to position India as a leading global travel destination.
Budget 2025: Hospitality Sector's Key Demands
Davinder Juj
General Manager, Eros Hotel, New Delhi, Nehru Place
Sustainable Growth and Inclusive Development: The Hospitality Industry's Budget 2025 Aspirations
Vinesh Gupta
General Manager - The Den Hotel, Bengaluru
As we approach the 2025 Union Budget, the hospitality industry remains optimistic about reforms that can drive sustainable growth. Rationalizing GST slabs, particularly to further streamline the sector, would not only enhance competitiveness but also encourage greater domestic and international tourism. Additionally, reducing the complexity of the taxation structure can ease operational challenges and improve affordability, making India an even more attractive destination for travelers. Furthermore, initiatives like investing in infrastructure are vital to unlocking the potential of offbeat and emerging destinations.
At The Den, we believe that the government will continue prioritizing skill development initiatives aimed at empowering local communities. A well-trained workforce is crucial for delivering world-class hospitality experiences, and such initiatives can create meaningful employment opportunities while fostering inclusive growth. With the hospitality industry projected to grow significantly in the coming years, these measures can position India as a global leader in tourism, ensuring long-term benefits for businesses, travelers, and communities alike.
Growth on the Horizon: Indian Hotel Industry's Ambitious Plans
Tejus Jose,
Director of Operations at ibis & ibis Styles India
The direct contribution of the Indian hotel industry to the country's GDP is estimated to touch $1 trillion by 2047, driven by a significant jump in domestic tourist visits and international arrivals. As we approach the Union Budget 2025-26, the hospitality sector is optimistic about receiving continued support to fuel its growth trajectory. From an operational standpoint, we anticipate policies that ease taxation and incentivize sustainable practices, enabling hotels to adopt energy-efficient technologies without financial constraints. Additionally, we propose a dual GST policy of a 5 per cent GST rate and a 12 per cent GST rate with input tax credit. This approach would enable us to offset current expenses, increase capital expenditure, open more restaurants, and ultimately generate more employment and revenue for the Government.n
On the hiring front, initiatives to enhance skill development through targeted programs for the hospitality sector cahelp bridge the talent gap and create a robust workforce. Additionally, tier 2 and 3 cities have emerged as budding heroes of the hospitality industry, with immense potential to drive the next phase of growth. We hope the government introduces incentives for investment in these regions, focusing on improved infrastructure, tax benefits for new projects, and enhanced tourism promotion initiatives. Overall, we look forward to measures that bolster tourism infrastructure, such as improved connectivity and investment in underexplored destinations, which will benefit the entire industry. A strategic focus on public-private partnerships, along with tailored support for smaller cities, can pave the way for sustained innovation and growth in the sector.
Transforming India's Tourism Landscape in 2025
Rama Mahendru
Country General Manager- India, Intrepid Travel
" As we step into 2025, India's inbound and adventure tourism sector holds immense promise, driven by growing demand for meaningful and sustainable experiences. The Union Budget 2025-26 must underscore tourism’s transformative potential by prioritizing infrastructure development, sustainable practices, and initiatives like new adventure tourism circuits and community training. With enhanced campaigns promoting India as a premier destination, we can strengthen the industry, create jobs, and position our nation as a top global choice for adventure and cultural tourism”
Union Budget 2025: Transforming India's Travel and Hospitality Sector
Mukund Karpe,
Director of Sales and Marketing, Hyatt Regency Pune
"The travel and hospitality sector holds high hopes for transformative measures that will enhance its growth and resilience. Budget 25 should introduce measures that boost tourism infrastructure and provide incentives for sustainable practices. We expect the budget to reflect a commitment to a well supported industry acknowledging its significant contribution to the overall economic revival."
Union Budget 2025: Hospitality Industry Expectations
Sumit Dang,
Director, Seven Seas hospitality
Union Budget 2025: Expectations for Hospitality Businesses As a leading hospitality brand, Seven Seas Hospitality foresees the Union Budget 2025 as a pivotal moment for the industry. Key expectations include:
-Simplified Tax Structures for the hospitality sector which will help businesses manage costs and improve margins.
-Budget allocations for improved transport connectivity, the development of tourism hubs and F&B zones which could boost the sector, making India a more attractive destination for global travelers.
-Support for the Wedding Industry
The wedding industry involves multiple stakeholders including SMEs and contributes significantly to the economy. Government initiatives to promote India as a global destination for weddings along with foreign investment incentives, could attract international tourists. Tax rebates or subsidies for hosting large-scale destination weddings in India would further boost this sector.
-Education Infrastructure for Hospitality
Provision of more Institutes of Hotel Management (IHMs) and advanced hospitality training centers would help the growing demand for skilled professionals in the sector.
Union Budget 2025-26: A Catalyst for Hospitality Sector Growth
Kulpreet Kaur
Director of Sales & Marketing –Hyatt Centric MG Road Bangalore
As the Director of Sales & Marketing, I am optimistic about the forthcoming Union Budget 2025-26 and its potential to significantly impact the hospitality sector. Granting industry status to hospitality would be a transformative move, acknowledging our substantial contribution to the GDP and employment generation. This recognition would facilitate easier access to financing and attract increased investments, propelling the industry toward sustained growth.
A reduction in the Goods and Services Tax (GST) is another pivotal reform we anticipate. Lowering GST rates would enhance the sector's competitiveness, making India a more attractive destination for both domestic and international tourists. This change is expected to stimulate demand, encourage higher spending, and ultimately lead to job creation and economic development. Notably, the hospitality sector has advocated for zero GST or a refund of GST collected from foreign guests to boost tourism and create jobs.
Investment in infrastructure development is crucial for attracting global events and tourists. By building world-class facilities capable of hosting international concerts and conventions, we can position India as a premier global tourism hub. Such developments would not only draw visitors but also stimulate local economies and create employment opportunities.
In summary, we are hopeful that the Union Budget 2025-26 will introduce these strategic measures, fostering an environment where the hospitality sector can thrive and continue to contribute significantly to India's economic landscape.
Bangalore's Hospitality Sector Thrives in 2025: A Promising Outlook for India's Tourism Industry
Sharin Joseph,
Commercial Director, Conrad Bengaluru
The hospitality sector in Bangalore is thriving in 2025, buoyed by an increase in both domestic and international travel. India’s growing appeal as a destination for business and leisure is complemented by significant investments being made across the country. Strengthening the hospitality infrastructure remains key to meeting the demands of this expanding traveler base. With the support of forward-looking policies and government initiatives, the industry is well-positioned to enhance India's reputation as a global hub for hospitality and tourism.
Union Budget 2025: Hospitality Sector's Expectations for Revival and Growth
Mr. Khizer Khan,
Hotel Manager, Double Tree by Hilton Pune-Chinchwad
"The hospitality sector, while on a recovery path, continues to face challenges from the pandemic’s prolonged impact. With Pune emerging as a corporate hub, the Union Budget 2025 must address industry needs by reducing GST to boost domestic travel and allowing corporate bookings under IGST for input credit benefits. Additionally, low-interest loans and incentives for sustainable practices are vital. At DoubleTree by Hilton Pune-Chinchwad, we aim to strengthen our positioning as the city’s leading business hotel through investments in hybrid event solutions, high-speed connectivity, and workforce enhancement programs. We are hopeful for a budget that supports holistic growth and industry resilience."
Transforming India's Hospitality Landscape
Vaishakh Surendran,
General Manager of Lyfe Hotels Bhubaneswar
Union Budget 2025: Tiger Shark's Expectations for a Boost to the Coffee and Hospitality Industry
Ritika Sharma,
Director, Litchi Bistro & Tiger Shark Hospitality Pvt. Ltd
I expect the 2025 budget to simplify licensing processes to increase ease of business in the industry. Tiger Shark hopes for introduction of a new GST slab helping the industry avail benefits of input tax credit. This would ease our way into large expansions. Coffee is a core element of our brand so keeping Pour Over Coffee Roasters in mind, I expect coffee to be included in PMFBY for commodity protection and stabilizing our supply chain. A budget dedicated to infrastructure and skill development specifically in the coffee sector would be greatly appreciated by the ever so growing industry.
Hospitality Industry Outlook 2025: Balancing Innovation and Cost Efficiency
Ashish Tiwari,
Executive Chef at ANDAAZ Banquets and Caterers New Jersey
2025 will see the hospitality industry prioritizing cost efficiency while driving innovation. Smart investments in sustainable operations, technology integration, and staff training will redefine budget allocation. A balanced approach to resource management will ensure profitability without compromising guest satisfaction, setting a new benchmark for operational excellence.
2025 Hospitality Budgets: Adapting to Evolving Guest Expectations
Mohammad Sameer,
Executive Pastry Chef at Andaaz Restaurant New Jersey
Hospitality budgets in 2025 must adapt to evolving guest expectations. The focus will shift to strategic cost controls, embracing energy-efficient technologies, and enhancing digital transformation. Allocating resources towards personalized guest experiences will ensure long-term loyalty while keeping expenditures aligned with market trends.
Hospitality Industry's Budget Wish List: Growth, Sustainability, and Infrastructure
Vishal Vincent Tony, Managing Director of Ayatana Hospitalities Private Limited
The hospitality industry looks to the Budget with hopes for reforms that foster growth and resilience. Simplifying tax structures like GST and reducing rates for the sector would provide much-needed relief, enabling businesses to recover and expand. Additional measures to boost domestic tourism, such as incentives for travellers or tax deductions on travel spending, could also encourage more movement within the country.
The focus areas for the Budget should include creating a skilled workforce to meet the increasing demand for quality services. Investments in training and development programs, along with collaborations between the government and private sector, can address this need. Granting industry status to the hospitality sector would ease access to funding and provide benefits like lower interest rates, which are crucial for business sustainability.
Promoting sustainable tourism is essential in today’s world. The Budget should support initiatives that encourage eco-friendly practices, from funding for green infrastructure to incentives for businesses that prioritize conservation. Awareness campaigns and sustainable tourism certifications could further reinforce this commitment.
Lastly, to position India as a global tourism hub, improving infrastructure and connectivity is key. Investments in airports, railways, and tourist facilities, coupled with targeted international marketing campaigns, can attract more visitors. Showcasing India’s cultural diversity and natural beauty will solidify its place on the global tourism map.
Hospitality Industry's Budget Wish List: Rationalisation, Funding, and Tax Credits"
Jai Sreedhar,
Joint Managing Director and CEO, Rosetta Hospitality
As the hospitality sector continues to recover and grow, the upcoming Union Budget 2025 offers a significant opportunity to address some long-standing challenges and help the industry reach its full potential.
1. Rationalisation of GST:
The current GST structure creates challenges, especially for luxury hotels. Rationalising GST rates and introducing uniformity across categories would enhance affordability for travelers and simplify compliance for operators, ultimately driving demand and revenue.
2. Enhanced Funding Support:
The hotel industry needs better funding support from both the government and banks to help with the development of new projects. Easier access to loans with favorable terms would encourage investment in infrastructure and promote overall growth in the sector.
3. Input Tax Credit on Construction Costs:
One of the pressing issues is the inability to claim input tax credit on construction costs. Allowing this would significantly ease the financial burden on hotel developers, incentivizing investment and expansion in the sector.
The hospitality industry is a critical contributor to the economy, generating employment and attracting both domestic and international tourism. Addressing these key areas in the budget would not only strengthen the sector but also contribute to India’s overall economic growth.
Standalone Restaurants Seek Budget Relief: 5 Key Concerns
Amit Roy
Restaurateur and partner at Shilton Hospitality
As a representative of the standalone restaurant sector, I urge the Indian government to address several pressing concerns in the upcoming budget to ensure the industry’s sustainable growth and equitable treatment under the Goods and Services Tax (GST) regime.
1. Input Tax Credit (ITC) Disparity:
Currently, standalone restaurants are ineligible for Input Tax Credit, unlike their counterparts in hotels. This discrepancy places standalone establishments at a competitive disadvantage, as they cannot offset the GST paid on inputs against their output tax liability. For instance, while hotel-based restaurants charge 12–18% GST based on slabs and standalone restaurants charge 5% GST on services, only the former can claim ITC on expenses such as raw materials and rentals. This policy not only hampers profitability but also discourages investment in the standalone restaurant sector. We recommend extending ITC benefits to standalone restaurants to create a level playing field and promote fair competition.
2. High GST Rates on Essential Inputs:
Standalone restaurants are subject to an output GST rate of 5% without ITC benefits, yet they incur 18% GST on most inputs, including rentals, equipment, and raw materials. This inverted tax structure escalates operational costs and erodes profit margins. For example, a restaurant paying 18% GST on kitchen equipment cannot offset this tax against the 5% GST collected from customers, leading to increased financial strain. We propose rationalizing GST rates on essential inputs or allowing ITC on these expenses to alleviate the financial burden on standalone restaurants.
3. Complex GST Structure and Compliance Challenges:
The multiplicity of GST rates and the complexity of compliance procedures impose significant administrative burdens on small and medium-sized restaurants. The necessity to navigate varying tax slabs—for instance, 28% GST on items like cigarettes sold in bars without ITC benefits—complicates pricing strategies and demands specialized accounting expertise. Non-compliance or delays in filing can attract penalties, further exacerbating operational challenges. Simplifying the GST structure and streamlining compliance requirements would reduce administrative overheads and enable restaurateurs to focus on business growth.
4. Disparities in GST Rates Across Similar Services:
The current GST framework imposes different rates on similar services, leading to confusion and operational difficulties. For example, while dining in a restaurant attracts 5% GST, delivery services are taxed at 18%, and catering services may fall under different slabs. This inconsistency complicates billing processes and can deter customers due to higher prices on certain services. We advocate for the harmonization of GST rates across similar services within the food and beverage sector to ensure consistency and fairness.
5. Impact on Industry Growth Prospects:
The standalone restaurant industry holds significant potential, with projections to become a $30 billion sector by 2025. However, the current GST regime’s complexities and financial strains impede this growth trajectory. Addressing the aforementioned issues would not only enhance profitability for existing establishments but also encourage new entrants, fostering a more vibrant and competitive market landscape.
We urge the government to consider these recommendations in the forthcoming budget to support the standalone restaurant industry’s growth and sustainability. Implementing these changes will promote fairness, reduce operational burdens, and contribute to the broader economy by enabling this sector to thrive.
Sustainable Growth and Digital Transformation: Key Expectations for Hospitality
Vishal Puri,
Co-Founder, Spalba
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"As a SaaS company driving dynamic pricing and revenue growth for the Indian travel and hospitality industry, I am optimistic about Budget 2025 and its potential to address critical challenges while fostering growth. Key expectations include enhanced connectivity through investments in air, rail, and road infrastructure, particularly to improve access to tier-2 and tier-3 cities via new airports, railway lines, and highways.
The hospitality sector is hopeful for a reduction in GST rates on hotel rooms priced above ₹7,500, which would stimulate domestic and international tourism. Whereas, for intercity passenger mobility, a standardized national regulatory framework is essential to replace the fragmented state-specific rules, promoting fair competition and creating a level playing field.
Additionally, I strongly believe that there should be emphasis on electric mobility, with subsidies, tax incentives, and infrastructure development for electric buses, would support a sustainable transition to greener fleets. These measures would not only address current challenges but also pave the way for long-term growth and sustainability in the travel and hospitality industry."
Sustainable Tourism Growth: Key Demands for Budget 2025
Pardeep Kumar Siwach,
DGM - Mayfair Spring Valley Resort
As the 2025 budget approaches, the tourism industry hopes for a strong focus on better infrastructure and sustainability. Last year’s steps to promote rural tourism and improve connectivity were well-received, and we now look forward to more investments in emerging destinations. Resorts need tax relief on investments and GST adjustments to stay profitable. Funding for skill development and workforce training is also important to improve service quality.
Greater attention to eco-tourism and sustainable practices, along with policies that encourage public-private partnerships, can drive growth in tourism. Improving infrastructure and accessibility in Northeast India will make the region more attractive to visitors, boosting its growth in a sustainable way. Combining eco-tourism with opportunities for MICE (Meetings, Incentives, Conferences, and Exhibitions) events can turn Northeast India into a leading destination for tourism and global events, putting it firmly on the world tourism map.
Budget 2025: Streamlining Taxes for Growth
Prasuk Jain,
Managing Director, Snow World Entertainment & Prasuk Jain Hospitality
“The upcoming budget offers a chance to simplify tax structures for food, beverage, and recreational activities, fostering consumer engagement and operational efficiency. Addressing classifications for automobiles and components can eliminate complexities, ease compliance, and encourage innovation, driving growth across connected industries.”
Enhance digital infrastructure for cutting-edge learning
Prof. (Dr.) Shikha Verma Kashyap
Director, AAFT University of Media and Arts
As we step into 2025, AAFT University envisions a transformative budget that aligns with our commitment to excellence in education, innovation, and sustainability. Our primary focus will be on augmenting digital infrastructure to foster cutting-edge learning experiences, introducing avant-garde academic programs tailored to evolving industry demands, and prioritizing investments in research and development.
This strategic allocation aims to empower our students with the skills and resources needed to excel in the competitive landscape of media and arts while fostering global industry partnerships. By reinforcing sustainability initiatives, we also underscore our responsibility toward a greener future. The 2025 budget will be a cornerstone in advancing AAFT University’s mission to shape leaders, innovators, and changemakers of tomorrow.
Union Budget 2025: F&B Industry's Wish List for Simplification and Growth
Ankita Chona,
The founder of Hocco Ice Creams
“The Food and Beverage industry anticipates the 2025 Budget to simplify GST, reinstating Input Tax Credit and reducing rates on dining services. We expect streamlined regulatory approvals under the National Single Window System and export incentives to boost global competitiveness. Simplified FSSAI licensing will further encourage local entrepreneurship and growth.” – Ankita Chona, Founder of Hocco Ice Creams.