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Discover insights from industry experts on the Union Budget 2025-26
Budget 2025: Unlocking India's Tourism Potential
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. Simplifying the visa process will encourage more international visitors, boosting tourism and further contributing to the economy.
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 travelers 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."
Budget 2025: A Boost to India's Tourism Sector
Pradeep Shetty, spokesperson, Hotel and Restaurant Association of Western India- HRAWI & Vice President, Federation of Hotel and Restaurant Associations of India (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. Simplifying the visa process will encourage more international visitors, boosting tourism and further contributing to the economy.
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 travelers 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," says Pradeep Shetty, spokesperson, Hotel and Restaurant Association of Western India- HRAWI & Vice President, Federation of Hotel and Restaurant Associations of India (FHRAI).
“Budget 2025-26- another push for tourism but is it enough” !
The Budget 2025-26 recognises and highlights the importance of tourism and hospitality as an engine of job creation and promoter of inclusive growth. An infusion of Rs 20,000 crore to increase tourism-led employment is going to help several states that house top tourist locations build infrastructure and boost connectivity. However, the onus has been put on states to acquire land to build hotels and other required facilities.
Top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode. The key takeaway for us is the fact that Hotels in those destinations will be included in the infrastructure harmonised master list (HML). HAI looks forward to knowing details like the identified 50 destinations etc.
There is a continued focus on connectivity, ease of travel and on spiritual tourism. In addition to projecting India as a birthplace of Lord Ram through the Ramayana circuit, the development and promotion of the Buddhist circuit will also be a priority. The objective would be to increase tourist footfall from South East Asian by including visa fee waivers. The Medical tourism segment or Heal in India is another segment that will receive attention.
The Udan scheme will be extended to connect 120 more destinations further promoting regional connectivity.
The state of Bihar for its Buddhist sites has been identified for improvement and capacity expansion of the existing Patna airport as well as for financial support for a greenfield airport project in the state.
The partnership with states in tourism development with performance-linked incentives, MUDRA loans, intensive skill development for youth will further strengthen tourism.
The achievement of Vikas Bharat through the three Ds Democracy, Demography and Demand was clearly the overriding theme of the budget. We hope that a part of the additional disposal income in the hands of people through the relief on income tax to push demand will be directed towards hotel accommodation.
The Hotel Association of India has been actively advocating for government-private sector partnerships and remains committed to collaborating with authorities to ensure the sustainable development of Indian hospitality, even in the most remote areas.
Tourism has been identified as a key pillar of the economy by our hon’ble PM who has been the best ambassador for the industry.
Union Budget 2025: A Comprehensive Plan to Boost India's Tourism Sector
Rajesh Magow, Co-founder & Group CEO, MakeMyTrip
“The Finance Minister’s announcements reflect a clear intent to harness the potential of travel and tourism sector by prioritizing infrastructure, improving access, incentivizing investment, and expanding its reach beyond established hubs.
Strengthening regional connectivity through the modified UDAN scheme will unlock new corridors of travel, bringing deeper parts of India into the tourism fold. The 50-year interest-free loan to state governments will drive infrastructure development at the destination level, thereby contributing to the tourism growth story.
The challenge-mode approach to developing 50 destinations, backed by performance-linked incentives, shifts the focus to outcome-driven execution—encouraging states to compete and innovate in destination management.
Equally important is the structured push for hospitality. Including hotels in the harmonized infrastructure list across 50 destinations will unlock long-term financing and drive investment, while extending Mudra loans to homestays ensures that smaller entrepreneurs and local communities are equally part of this growth story.”
Agoda Welcomes India's Tourism Boost in Union Budget
Krishna Rathi, Senior Country Director, India Subcontinent and MEA at Agoda
"Agoda acknowledges and celebrates India's exciting potential as a top travel destination and is enthusiastic about the tourism plans announced in this year's Union Budget. The investment in recent years in infrastructure enhancements and destination marketing is undeniably paying off. At Agoda, we see this reflected in a 22% year-on-year increase in inbound accommodation searches to India. With this year's announced investments in the expansion of the UDAN scheme to connect 120 new destinations, enhanced support for homestays, and the development of top tourist destinations in collaboration with state governments, we're hopeful that India will be able to sustain this momentum. Especially as this comes on top of continuing positive trends like visa easements and inspirational destination marketing campaigns promoting India's diverse experiences and attractions."
Tourism and Job Market Get a Boost in Budget 2025
K.B. Kachru, Chairman, Radisson Hotel Group South Asia & President – Hotel Association of India (HAI)
“Budget is progressive, especially with its focus on tourism and job creation. The government’s commitment to developing 50 new destinations, and improving infrastructure, is promising. This year’s budget very well highlights the importance of promoting spiritual and medical tourism with neighbouring countries and simplifying visa processes to enhance international travel. Overall, the initiatives taken by the government in this year’s budget are the steps in the right direction for the industry.”
Union Budget 2025: Boosting Tourism, Employment, and Economic Growth
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"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, includian 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 in accelerating domestic tourism and increase demand for hotels and travel services. With tourism playing a critical role for employment generation and economic contribution, these measures will act as strong enablers for sustained growth.”
A Balanced Budget for a Vibrant Economy
Rajiv Kumar,Vice Chairman,DS Group - a prominent FMCG conglomerate
“With the Union Budget 2025-2026, the Government has taken strides towards realizing the Viksit Bharat vision by 2047. The agenda laid out by the FM will address and uplift several economic and social reforms in India. The forgoing of ₹1 lakh crore in direct taxes and full tax exemption up to ₹12 lakh income under the new regime is expected to boost consumer spending, benefiting sectors such as FMCG, automobiles, and retail. The middle class and salaried professionals will have more disposable income, driving demand in these areas. It is a balanced budget for corporates as well as individuals and will have a multi-year effect going forward, supporting overall growth and encouraging inclusive development and private investment. Emphasis on digital infrastructure and connectivity enhancement is another key positive. Increasing foreign direct investment (FDI) in the insurance sector from 74% to 100% will boost the sector's growth by stimulating investment across the board.”
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"At Araiya, we wholeheartedly support the government's vision to boost tourism across India. The initiative to develop the top 50 tourist destinations, alongside the Swadesh Darshan and PRASHAD schemes, will enhance infrastructure and promote regional growth. We are particularly excited about the focus on medical tourism and destinations linked to the life of Lord Buddha, which showcase our rich cultural heritage.
These efforts, including skill development programs and public-private partnerships, will empower local communities and businesses. Additionally, the Incredible India campaign and digital initiatives will attract more travelers, enhancing their experiences. We believe these measures will foster sustainable tourism and contribute to a thriving tourism ecosystem in India."
Budget 2025: A Game-Changer for India's Tourism and Hospitality Industry
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 additional 120 destinations and supporting helipads development in 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 travelers.
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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“The recent change in Budget 2025 allowing taxpayers to treat two properties as self-occupied significantly benefits individuals who own a holiday home or a second property for personal use. Previously, owning more than one property meant that the second property would be taxed on deemed rental income, even if it was not being rented out. This made owning a second home, such as a vacation property, less attractive due to the extra tax burden. However, with the new rule in Budget 2025, taxpayers can now classify both their primary residence and holiday home as self-occupied, exempting them from the tax on notional rental income for the second property.
This makes owning a second home for personal use more financially viable, offering relief to those who enjoy vacation homes or seasonal residences without facing additional taxes on properties they don’t rent out. As a result, this change encourages more people to invest in second properties for personal enjoyment without the concern of higher tax liabilities. The 2025 Budget sets the foundation for a robust economy, focusing on financial stability, more investment in real estate, and sustainable growth in the years to come."
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Budget 2025: Positioning India as a World-Class Travel Destination
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Saurabh Gahoi, Senior Vice president of Ramee Group of hotels
“The Union Budget announcement by FM Sitharaman marks a significant milestone, driving growth while empowering citizens, particularly the middle class. A notable highlight is the emphasis on the travel and hospitality industry, which promises transformative changes.
Key measures include enhancing connectivity to major tourist destinations, offering performance-linked incentives to states for better destination management, and improving tourist amenities and cleanliness. Additionally, the introduction of streamlined e-visa facilities and visa-fee waivers for select groups is set to boost inbound travel.
Additionally, domestic and spiritual tourism is set to flourish, supported by revised income tax reforms that encourage travel within the country. A major boost comes from intensive skill-development programs, particularly in Institutes of Hospitality Management, ensuring world-class training for the youth. By prioritizing individual growth, these initiatives will lead to superior customer experiences, elevating India’s hospitality standards globally.
This budget serves as a catalyst for long-term industry growth, creating new business opportunities and employment. With a focus on infrastructure, workforce development, and seamless travel experiences, FM Sitharaman’s budget is a game-changer, strengthening India’s position as a premier travel and hospitality hub.”
Vishal Vitthal Kamat, Executive Director of Kamat Hotels India Ltd, Chairman of CII Maharashtra
"This budget is a well-balanced one, covering multiple sectors and ensuring a strong trickle-down effect rather than focusing on just one area. One of the most significant highlights is the revision in the income tax structure, particularly for those earning under ₹12 lakh. The impact of this change is massive, as it will instantly boost consumer spending across various sectors, including hospitality, travel, tourism, and entertainment. The government's approach is clear—while they may initially forego nearly ₹1 lakh crore in direct tax revenue, they are poised to recover this through increased GST collections. More importantly, this move will drive job creation, economic growth, and an overall surge in consumerism.
Another notable aspect is the UDAN scheme, which has the potential to transform the industry. However, for UDAN to truly succeed, it needs to be executed with consistency and quality. Some operators are currently unreliable, leading to erratic schedules, cancellations, or delays. For this initiative to achieve its full potential, it must be managed with the same efficiency as major airline networks, ensuring seamless connectivity rather than just expanding reach.
Additionally, medical tourism presents a significant opportunity for India. Our country has evolved from being known only for great doctors to offering world-class hospitals and medical infrastructure. With healthcare costs in Europe and the U.S. skyrocketing, India is emerging as a prime destination for international patients. Even after accounting for travel, accommodation, and surgery expenses, treatment in India is often a fraction of the cost abroad. This will drive a substantial influx of medical tourists, further strengthening the economy.
Overall, this budget is a step in the right direction, fostering growth across industries and positioning India as a key global player in multiple sectors."
Union Budget 2025: Empowering Farmers, Boosting Agri-Innovation
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"The Union Budget 2025 rightly positions agriculture as the first engine of growth, ensuring holistic rural and economic development. The introduction of the Developing Agri Districts Programme, alongside initiatives for crop diversification, irrigation, and enhanced credit access, will directly benefit 1.7 crore farmers, strengthening India’s agricultural backbone.
Aditya Pande, Group Chief Executive Officer, InterGlobe Enterprises
"This budget outlines a compelling roadmap for a Viksit Bharat. The focus on boosting consumption through targeted tax relief for the middle class, coupled with the government's commitment to streamlining tax procedures, will significantly improve ease of doing business and unlock further economic potential.
At InterGlobe Enterprises, we are particularly encouraged by the strategic investments and vision for strengthening the holistic tourism ecosystem in the country, with the development of infrastructure and focus on skilled workforce. These initiatives lay a solid foundation for sustained economic progress and a brighter future for the country.”
Union Budget 2025: A Game-Changer for India's Tourism and Hospitality Sector
Vishal Vincent Tony, Managing Director of Ayatana Hospitalities Private Limited
The Union Budget 2025 represents a significant advancement for India's tourism and hospitality sector. The government's focus on regional connectivity, infrastructure development, and sustainable tourism is set to enhance travel experiences and stimulate economic growth.
The expansion of the UDAN scheme to include 120 new destinations will improve accessibility to emerging travel hubs, creating new opportunities for experiential tourism. Additionally, the provision of Mudra loans for homestays will empower local communities and promote unique, culture-driven hospitality. The initiative to develop 50 key tourist destinations in collaboration with state governments is a positive step, ensuring that both India’s iconic and emerging locations receive the attention they deserve.
With a strategic emphasis on spiritual and medical tourism, along with the facilitation of e-visas and visa fee waivers for select countries, India is positioned to strengthen its status as a global travel destination. The commitment to employment-led growth in tourism will further benefit the industry by creating new opportunities and fostering long-term development.
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“The provisions outlined by our esteemed Finance Minister in the Union Budget 2025 are encouraging. Her emphasis on positioning India as a spiritual destination is likely to generate increased interest among international travelers, thereby becoming a crucial driver for the growth of the travel and hospitality sectors and the broader Indian economy. The initiative to promote India as the land of Lord Buddha and Lord Ram is expected to attract Non-Resident Indians, which will promote tourism. Additionally, the focus on land acquisitions for hotel development is anticipated to draw foreign investments, further fostering growth and advancement in the sector. The reduction in visa fees to promote medical tourism is a noteworthy measure that will directly benefit hotels financially. Furthermore, an allocation of Rs 20,000 crore aimed at enhancing tourism-related employment will assist various states with prominent tourist attractions in developing infrastructure and improving connectivity. Overall the budget represents a significant impetus for attracting foreign tourists, which will, in turn, stimulate the growth of the hospitality, travel and tourism industries.”
Saurabh Wadkar, Founder, Rooted - a gourmet Indian meal subscription service
"The Union Budget 2025-26 reflects a bold step towards shaping India’s future by strengthening agriculture, MSMEs, and entrepreneurship. The Dhan Dhanya Krishi Yojana and the focus on self-sufficiency in pulses will stabilize supply chains, ensure fair pricing for farmers, and build a more resilient food ecosystem. With consumers becoming more conscious about what they eat, the emphasis on nutrition, value-added agriculture, and food security, signals a forward-thinking approach. Establishing the National Institute of Food Technology is a step in the right direction—it will not only boost food innovation and processing but also cultivate the next generation of entrepreneurs and skilled professionals in this space.
The government’s push for expanding credit access—especially for MSMEs, first-time entrepreneurs, and women-led businesses—is commendable. However, access to capital is just one part of the equation. The real impact will be seen in how seamlessly and efficiently these funds reach businesses without bureaucratic roadblocks. The introduction of Bharat Trade Net for trade documentation and financing solutions could be a game-changer if executed well, further simplifying the ease of doing business in India.
Beyond policy, this budget acknowledges the evolving aspirations of a modern India. The expansion of UDAN, tourism incentives, and infrastructure investment will unlock new opportunities across hospitality, logistics, and regional trade. This will create a ripple effect on consumption patterns, employment, and GDP growth—a shift that visionary entrepreneurs must prepare for.
That said, taxation remains an area that requires urgent reform. High GST rates on processed foods and compliance challenges continue to slow down growth. This budget lays the foundation, but the real test lies in execution. India is on the brink of an entrepreneurial revolution—the right policies, if implemented well, can propel businesses into an era of unprecedented growth."
Budget 2025: A Strategic Vision for India's Tourism Growth
Hussain Patel, Director, TripJack
"The Union Budget 2025 reaffirms the government’s strategic vision to position India as a world-class tourism destination while driving employment-led growth. The initiative to develop 50 top tourist destinations in partnership with states, backed by improved infrastructure and inclusion of hotels in the infrastructure HML framework, will significantly enhance the country’s hospitality ecosystem. The emphasis on skill development through Institutes of Hospitality Management, easier access to MUDRA loans for homestays, and enhanced connectivity to tourist sites will empower local communities and entrepreneurs, creating sustainable employment opportunities.
Furthermore, performance-linked incentives for states to strengthen destination management—covering aspects such as tourist amenities, cleanliness, and marketing—will ensure a superior travel experience for visitors. The continued focus on spiritual and religious tourism, particularly destinations associated with Lord Buddha’s life and legacy, aligns with India’s rich cultural and heritage-driven tourism potential. Simplified e-visa procedures and visa-fee waivers for select tourist groups will also make India more accessible to global travellers, reinforcing its position as a vibrant and diverse tourism hub.
Promoting medical tourism in collaboration with the private sector in addition to capacity building and easing visa application norms will also provide a huge fillip to India’s tourism sector.”
Budget 2025: A Balanced Approach to Economic Growth
SANJAY JAIN, DIRECTOR, ELANPRO
“We welcome the budget announced by the Honourable Finance Minister, which lays a strong foundation for inclusive and sustainable economic growth by focusing on agriculture, MSMEs, investment, and exports. The emphasis on Nari Shakti and support for startups is a positive step toward fostering entrepreneurship and innovation.
The recognition of MSMEs as the ‘second engine’ of growth, through enhanced credit availability with guarantee cover, will empower businesses to expand and innovate. Strengthening the MSME and startup ecosystem is crucial for industrial growth, including sectors like commercial refrigeration, which support various industries from food processing to healthcare.
Tourism as a major employment generator is another commendable focus. The Heal in India initiative will further boost medical tourism, while the emphasis on spiritual and religious destinations, including sites related to Lord Buddha, will enhance India’s global appeal. The development of the top 50 destinations, performance-linked incentives for states, improved travel connectivity, and streamlined e-visa facilities will significantly strengthen the hospitality and allied industries. Additionally, the modified UDAN scheme will improve regional connectivity, benefiting industries like ours that play a crucial role in supporting the tourism and hospitality ecosystem.
The budget’s provision for a tax rebate for incomes up to Rs. 12 lakh, with a benefit of Rs. 80,000 will provide relief to middle-income groups, boosting disposable income and driving overall consumption. This, in turn, will stimulate demand across key sectors of the food retail and hospitality industries that rely on efficient refrigeration solutions.
Overall, this budget takes a balanced approach to economic growth, job creation, and business sustainability. The measures outlined will strengthen industrial infrastructure, drive demand and consumption, and support India’s journey toward self-reliance and global competitiveness.”
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The performance-linked incentives for states to enhance their tourism ecosystems are a smart move, encouraging localized improvements in infrastructure, cleanliness, and experience-building. The expansion of visa-on-arrival facilities and the 'Heal in India' initiative for medical tourism further reinforce India's commitment to making travel easier and more accessible.
Equally critical is the push for airport infrastructure expansion, with new greenfield airports in Bihar and the expansion of Patna Airport and Bihta. The growth of India's aviation network will not only enhance domestic travel but also make secondary and tertiary cities more accessible to international tourists. The UDAN expansion covering 120 new destinations is a game-changer—ensuring that travel demand isn’t just concentrated in metros but extends to aspirational districts, hilly terrains, and high-potential yet underutilized destinations. More than just connectivity, this move supports local economies, creating opportunities for small businesses and tourism entrepreneurs across the country.
While these are commendable steps, there’s still an opportunity to reimagine India’s global tourism positioning. The real impact will come from execution—how well we bridge infrastructure gaps, streamline traveler experiences, and create compelling, high-quality travel offerings that make India a preferred destination not just for international tourists but for domestic travelers as well. This budget sets the foundation, and it’s now up to the industry and stakeholders to turn these policy moves into real impact."
Liberatha Kallat, Chairperson & MD, DreamFolks
"The Union Budget 2025 is a game-changer for India's travel and tourism sector. The UDAAN expansion and support for smaller airports will boost regional connectivity, driving demand for premium airport services like ours at DreamFolks. Including hotels in the infrastructure list and developing top destinations will further enhance India's tourism appeal, creating opportunities for us to expand our network and hospitality partnerships. Access to PM Gati Shakti data will enable us to optimize operations and create a more seamless travel ecosystem. The focus on medical tourism and 'Heal in India' will drive demand for tailored airport services for medical travelers, a segment we're well-positioned to serve. Finally, Mudra loans for homestays will boost experiential tourism, allowing us to collaborate with emerging hospitality players and offer more holistic travel solutions. This budget lays a strong foundation for India to become a global tourism hub, and DreamFolks is ready to capitalize on these opportunities to elevate travel experiences worldwide."
Budget 2025: A Welcome Boost for India's Tourism and Hospitality Industry
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"The 2025 Union Budget has a few prominent provisions for boosting the tourism and hospitality sector. The plan to develop 50 new tourism destinations in collaboration with state governments is very exciting. This will help attract hoteliers to invest and open more destinations for the travelers.
Additionally, the budget also has a modified UDAN scheme which can further enhance connectivity to the destinations. It also highlights the making of streamlined e-visa and visa free access for select travel group which will help in driving international footfall. The strategic focus on promoting medical and spiritual tourism through the "Heal in India" initiative is also a great initiative. The total budget allocation for tourism has increased significantly to ₹2,541 crore from ₹850 crore, which is very encouraging."
Union Budget 2025: A Watershed Moment for India's Tourism and Hospitality Industry
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Akaal Manchanda, Founder and Director Zuper Hotels & Resorts
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A Missed Opportunity for the Future of Food -
While the budget does well to support agriculture, food processing- especially plant-based foods—needs more attention. India has the potential to be a global leader in plant-based proteins, but for that, we need policy support. The National Mission for High-Yielding Crops should also encourage high-protein plant ingredients like soy, pea, and millet, which are essential for the growing plant-based food industry.
This aligns with the government’s own Mission LiFE, which recognizes that shifting consumption habits is key to tackling environmental and climate challenges. The Economic Survey 2025 highlights that food waste contributes 8% of global greenhouse gas emissions, and a shift toward plant-based diets can significantly reduce an individual’s carbon footprint - by up to 2.1 tons annually for a vegan diet and 1.5 tons for vegetarians. India, as a leader in sustainability efforts, should encourage plant-based food alternatives to align with its climate goals.
Making plant-based foods more affordable through GST rationalization and including them in incentive schemes would be a game-changer. Household consumption accounts for two-thirds of global emissions, and nudging people towards sustainable dietary choices is an idea whose time has come. India is uniquely positioned to lead the world in sustainable, ethical food choices, creating jobs, boosting exports, and ensuring a better future for the planet.
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The 2025 Union Budget presents an encouraging vision for the hospitality and tourism sector, with clear steps to bolster the industry’s growth and resilience. The government's focus on developing top tourist destinations through a challenge mode and introducing performance-linked incentives for states reflects a forward-thinking approach to enhance both domestic and international tourism. The expansion of infrastructure and streamlined visa processes will make it easier for tourists to visit, offering a significant boost to the sector.
Additionally, the emphasis on skill development programs for the hospitality workforce and the promotion of medical tourism showcases the government's commitment to creating a thriving, competitive tourism ecosystem. The introduction of the revamped PM SVANidhi scheme to support street vendors further underlines the government's intent to nurture the broader tourism value chain.
With these targeted measures, the Budget provides a strong foundation for transforming India into a global tourism hub, creating employment opportunities, and contributing to the economy’s long-term growth.
Budget 2025-26: Paving the Way for India's Hospitality Sector to Soar
Kahraman Yigit, Co-founder & CEO of Olive by Embassy
“The Union Budget 2025-26 recognizes tourism as a key driver of employment-led growth and extending infrastructure benefits to hotels in 50 select destinations is a welcome move. The sector anticipated infrastructure status, GST reforms, tourism incentives, and increased investment in travel infrastructure to drive growth and ease financial access. The focus on spiritual and medical tourism, visa waivers, and regional connectivity through the UDAN scheme will further boost domestic and international travel, unlocking new opportunities for the hospitality sector. At Olive by Embassy, we see these initiatives as a step toward creating a more vibrant, accessible, and investment-friendly ecosystem for hospitality in India.”
Budget 2025: A Boost to Innovation and Growth
Startups in Hospitality Sector Get a Boost with Budget 2025
The 2025 Union Budget offers a much-needed boost for the startup ecosystem in the hospitality sector, with proposals that promise to unlock new opportunities for growth and innovation. The introduction of a new Fund of Funds for startups, along with credit support for micro-enterprises, will help new players in the hospitality space scale their operations and enhance service offerings, from boutique hotels to innovative culinary experiences. This is a crucial step towards enabling the next generation of hospitality entrepreneurs.
Moreover, the Budget’s focus on transforming India into a global hub for tourism through improved infrastructure, including the development of new tourist destinations, is set to revitalize the sector. The proposal to streamline the regulatory environment for startups, coupled with enhanced support for the food and tourism industries, will open new doors for emerging hospitality brands to thrive. By fostering an environment of innovation and investment, this Budget lays the groundwork for a dynamic and competitive hospitality sector, which is critical to India’s economic recovery and future growth.
Budget 2025: Boosting Middle Class Spending and Socio-Economic Growth
Pramesh Goyal, Managing Director, Goyal Salt (FMCG Sector).
“The Centre’s move to revise the tax slabs is expected to stimulate middle class spending, boosting disposable income and fuelling socio-economic growth. By promoting private consumption, the budget announcements will support the growth of the rural and urban economies. The budget creates substantial development prospects for the FMCG sector by laying a solid foundation for an economy that is more driven by consumption.”
Rama Mahendru- Country General Manager- India, Intrepid Travel- World’s leading adventure travel experience provider company
"It’s encouraging to see the Hon'ble Finance Minister’s announcements take a progressive approach, aligning with the goal of growing India’s infrastructure and tourism industry. Streamlined e-visa facilities and visa-fee waivers for certain tourist groups will boost inbound tourism.
The development of the top 50 tourist destinations through state partnerships will create local employment and spread tourism across the country. Additionally, the UDAN scheme will make travel more accessible, promoting both popular and emerging destinations. These initiatives are key to strengthening India’s global appeal, benefiting stakeholders and enriching the travel experience.
This budget lays the foundation for a transformative path that combines infrastructure growth, sustainable tourism, and economic dynamism, with a particular focus on boosting adventure tourism in India."
A Tasty Proposition: Union Budget 2025 and its Impact on the F&B Sector
Ankit Chona, Promoter of Hocco Ice Creams
The Union Budget 2025 is set to boost the F&B sector by increasing middle-class disposable income, driving demand for diverse and premium food options. The establishment of NIFTEM in Bihar will equip the state’s youth with top-tier education and skills in food technology and entrepreneurship. Additionally, a reduction in customs duty on key F&B inputs will lower production costs, benefiting businesses of all sizes.”
Budget 2025: A Recipe for Growth in India's Restaurant and Tourism Industries
Kula Naidu, Director at Secret Ingredient
"India's 2025 budget is a boon for tourism, with its focus on 50 new destinations, simplified visas, and improved connectivity. This translates to a significant opportunity for restaurants: more tourists, more customers, and a chance to showcase regional culinary specialties. The "Heal in India" initiative, designed to boost medical tourism through public-private partnerships, further strengthens this positive trend. Secret Ingredient is already positioning itself for this growth by expanding its F&B collaborations with healthcare providers. While successful implementation is crucial, this budget clearly recognises tourism's economic importance and offers welcome support to the hospitality sector, including its vital restaurant component. The restaurant and hospitality industries are hopeful for future measures that address ongoing challenges, particularly much-needed GST tax changes. Specifically, the industry is advocating for the reinstatement of GST Input Tax Credit, which would significantly streamline operations and reduce costs. Furthermore, adjustments to the GST Reverse Charge Mechanism on commercial leases are crucial to alleviate financial strain. These changes would allow restaurants to focus on innovation, elevate customer experiences, and drive sustainable growth"