The Indian government has announced a slew of measures aimed at boosting the country’s tourism and hospitality sector in the Union Budget 2025-26 presented by finance minister Nirmala Sitharaman last week.
The central government will collaborate with state governments to develop top 50 tourist destinations in the country through a “challenge mode”. Land for building key infrastructure will be provided by states. Hotels in these destinations will be included in the infrastructure Harmonized Master List (HML), which will offer investors a host of benefits such as access to more External Commercial Borrowings (ECB) funds and eligibility to borrow from India Infrastructure Financing Company.
Furthermore, performance-linked incentives will be offered to state governments for effective destination management, such as having made investments in tourist amenities, cleanliness and marketing efforts.
Pradeep Shetty, vice president, Federation of Hotel and Restaurant Associations of India (FHRAI), said: “Inclusion in HML will facilitate access to cheaper and long-term financing, enabling hotels in these newly developed destinations to upgrade their facilities and offer world-class services, further boosting the sector.”
The government of India plans to modify its regional airport development programme to enhance connectivity to 120 new destinations and support helipads and smaller airports in hilly and north-eastern parts of the country.
“The Union Budget 2025 marks a significant step in supporting the sustained growth of India’s aviation sector. We commend the government’s commitment to infrastructure which will make air travel more accessible, thereby boosting tourism and the economy on the whole,” said Vinay Dube, founder and CEO of Akasa Air.
The Indian finance minister also announced that the central government is considering visa-fee waivers for certain tourist groups. Kush Kapoor, CEO, Roseate Hotels & Resorts, feels that the announcement of visa waivers will undoubtedly make India a more accessible and attractive destination for global travellers.
