Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on February 1, introducing significant initiatives to strengthen India’s tourism industry. With a focus on infrastructure development, regional connectivity, and hospitality support, the budget aims to make India a more accessible and competitive global travel destination while driving economic growth and job creation in the sector.
Here's a look at all the initiatives that the Finance Minister unveiled today for the tourism, hospitality and aviation sectors:
In collaboration with state governments, the Centre will develop 50 major tourist sites with upgraded infrastructure, better connectivity, and improved visitor facilities. The initiative seeks to position these locations as world-class destinations, drawing more domestic and international tourists and strengthening India’s appeal in global tourism.
To improve accessibility to remote regions, the government will continue the Regional Connectivity Scheme (RCS) under the UDAN initiative. The revamped scheme will connect 120 new destinations over the next decade, benefiting 4 crore additional passengers and accelerating aviation market growth. Currently, UDAN has operationalised 619 routes across 88 airports, serving 1.4 crore passengers. The expansion will make travel to smaller towns and emerging tourist hubs easier and more affordable.
Recognising the potential of spiritual tourism, the budget includes focused development of sites linked to Lord Buddha’s life and teachings. Enhanced infrastructure and accessibility at these locations will attract both domestic and international pilgrims, strengthening India’s position as a key Buddhist tourism destination.
The "Heal in India" initiative will further boost medical tourism by streamlining visa processes and fostering private sector collaborations. India’s affordable and high-quality healthcare services already attract global patients, and these measures aim to solidify the country’s status as a premier medical tourism hub.
The government will support the hospitality sector through MUDRA loans for homestays and small-scale accommodations, encouraging local businesses and community-led tourism initiatives. Additionally, hotels will be included in a standardised scheme to ensure consistent service quality across the industry.
The PM Gatishakti initiative will also open access to logistics and mapping data for private sector players, improving connectivity, streamlining transportation networks, and facilitating seamless travel experiences.
Leaders from the travel and hospitality industry have responded positively to the government’s focus on tourism, highlighting its long-term impact on economic growth, accessibility, and international appeal. Lucas Ramos, Senior Director, Travel & Membership—Asia, Pacific & India, RCI, emphasised the budget’s strategic approach in making India a globally competitive travel destination.
"Budget 2025 underscores the Indian government’s commitment to positioning tourism as a key pillar of economic growth, job creation, and global engagement. By developing top destinations in partnership with states, enhancing medical tourism through the ‘Heal in India’ initiative, and introducing visa reforms, India is strengthening its appeal as a world-class travel and healthcare hub. The inclusion of hotels in the harmonised scheme and visa waivers for select foreign tourists further reinforce a comprehensive, future-ready travel ecosystem," he said.
Anuj Rathi, Chief Business and Growth Officer, Cleartrip, also pointed out how these measures align with the industry’s long-term growth and the role of digital platforms in making travel more seamless. He said, "India’s travel industry is poised for growth, with the government’s focus on infrastructure, sustainable tourism, and medical tourism. The expansion of UDAN, the development of 50 key tourist destinations, and support for homestays offer significant opportunities."
Meanwhile, Karan Agarwal, Director, Cox & Kings, welcomed the initiatives, particularly the structured approach to destination development and international accessibility. He said, "The plan to develop 50 destinations and prioritise spiritual and medical tourism is a step in the right direction. Streamlining travel with e-visas and fee waivers will make India more accessible to international tourists, boosting arrivals. The focus on public-private collaboration in developing 22 top destinations is particularly encouraging. It signals a shift toward structured tourism growth through partnerships."
With strong policy backing and growing industry confidence, the Union Budget 2025 sets the stage for India to emerge as a more accessible, structured, and globally competitive tourism hub.
(With inputs from multiple sources)