The tourism sector has many reasons to rejoice. Presenting this year's Union Budget, Finance Minister Nirmala Sitharaman demonstrated a proactive stance towards fortifying the industry with many exciting allocations.
The allocated budget estimate for the tourism industry in FY 2024-25 witnessed an increase, standing at INR 2,449.62 crores, reflecting a strategic uplift of over 2 per cent from the previous fiscal year's INR 2,400 crores.
Addressing the booming interest in domestic tourism, Sitharaman highlighted forthcoming projects focused on port connectivity, tourism infrastructure, and amenities across India's islands, including Lakshadweep. The budget also allocates resources to enhance tourism projects in the islands, specifically Lakshadweep, which has gained popularity among tourists after the Prime Minister's recent visit. Beyond the economic perspective, these initiatives aim to create employment opportunities, enhancing the socio-economic fabric.
The success of hosting G20 meetings in sixty locations showcased India's diversity globally. Sitharaman underscored the nation's economic strength, positioning it as an attractive destination for business and conference tourism. She also emphasised the vast opportunities within tourism, including the potential of spiritual tourism, with the latest Ayodhya Ram Janmabhoomi temple attracting many travellers and presenting avenues for local entrepreneurship.
"The Government's plan to focus on spiritual tourism, development of iconic tourist spots and island destinations of India, including Lakshadweep, will generate employment, thus boosting India's economy," said Vishal Suri, Managing Director, SOTC Travel Limited.
A pivotal announcement in the budget pertains to the transformative initiative of converting 40,000 regular train bogies into Vande Bharat coaches. This strategic move aims to revolutionise India's railway infrastructure, augment passenger safety, and significantly improve comfort and convenience. The expansion of Vande Bharat's fleet aligns with the government's vision to reduce travel time, elevate passenger experience, and catalyse tourism growth across the nation.
Complementary to the Vande Bharat initiative, plans for additional NAMO trains and metro rail services across cities signify a holistic approach to meet the escalating demand for sustainable mobility solutions.
The government will continue to expand air infrastructure, with the FM stating the number of airports in India doubled over the last decade, with the number now standing at 149. "Having already doubled to 149 airports in the last decade, the government's plans to boost air connectivity by the addition of 517 new routes across Tier 2 and Tier 3 cities, carrying 1.3 crore passengers via the UDAN scheme, will play a critical role to boost accessibility-affordability for Regional India," said Madhavan Menon, Executive Chairman, Thomas Cook (India) Limited.
The most visionary highlight for this year is the government's initiative to boost tourist centres through long-term interest-free loans to states. This strategic investment empowers states to develop projects to elevate infrastructure, enhance amenities, and brand iconic tourist destinations. By facilitating states to meet global standards, this approach aims to attract domestic and international travellers, generating employment opportunities for local communities.
"The government's decision to invest significantly in the tourism sector, as stated by the Union Finance Minister in the Interim Budget, is a welcome step that bodes well for the Indian economy. Coupled with a strong focus on infrastructure development, it will lead to new tourism corridors, resulting in greater interest from domestic and international travellers to visit the less explored parts of the country," said Gautam Aggarwal, Division President, South Asia at Mastercard.
