Finance Minister Ms. Nirmala Sitharaman, in her Budget 2025-26 speech, highlighted several key initiatives to revitalise India’s travel sector. The tourism industry created 7.6 crore jobs in FY23. Foreign exchange earnings reached a whopping USD 28 billion. India received 1.8% of world tourism receipts and attained a rank of 14th worldwide in world tourism receipts during 2023. Boosting India’s growing tourism through the new budget will be a significant stimulus to the economy in the long run. Here are some of the key highlights:
- Developing Tourist Destinations
The budget unveiled a plan to develop 50 top tourist sites across the country. These sites will be beautified and upgraded with modern amenities, easy accessibility, and better facilities in collaboration with state governments. This initiative aims to diversify India’s tourism offerings, improve regional economic growth, and attract both domestic and international travellers. Additionally, the government is going to invest in sites of heritage and pilgrimage, especially locations related to the life of Lord Buddha, leveraging the significant demand in Southeast Asia for visiting Buddhist sites.
- Promoting Medical Tourism
In recent years, India has gained recognition as a frontrunner for cost-effective, efficient, and accessible medical procedures. Budget 2025-26 introduced the “Heal in India” initiative to position the country as a top choice for international patients. This includes improving healthcare infrastructure in partnership with private organisations and simplifying visa procedures for foreign patients seeking treatment in India.
A special focus of the new budget was revamping infrastructure. It includes plans to improve connectivity to 120 destinations, especially hill stations, remote locations, and northeastern states. This will unlock a plethora of conventionally untouched locales for tourists to explore. Seamless connectivity will further promote regional economies and support local businesses.
The budget also proposed easier visa procedures and approvals that include introduction of e-visas for more tourist classes, visa on arrival for certain tourist groups, visa waivers for specific countries, and a reduction in fees for medical tourists.
These significant measures aim to attract more domestic as well as international tourists, improve service quality, and increase investments. India’s growing religious tourism is set to generate 59 billion by 2028 and 140 million temporary and permanent jobs by 2030. The government’s keen focus on infrastructure development will result in the proliferation of hotels, resorts, and homestays, further sparking an uptick in employment.
Furthermore, the public-private collaboration will invite more players into the arena and help unleash the full potential of the hospitality and tourism sectors. These steadfast efforts will drive India’s progress to become a developed nation by 2047.
With an emphasis on “seva” and “atithi devo bhava”, the budget seeks to transform India into the new top global travel destination, which will contribute immensely to India’s growing GDP and bolster its international stature.
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