The Indian Union Budget 2025-26 has been met with widespread optimism from the travel, tourism, and hospitality industries. Industry leaders have praised the government’s strategic focus on infrastructure, connectivity, skill development, and digital transformation to bolster tourism. A major highlight of this year’s budget includes the development of 50 key tourist destinations in collaboration with state governments, expanded e-visa facilities, and new incentives for sustainable and medical tourism.
Strengthening Market Competitiveness and Operational Efficiency
Mr. Hussain Patel, Director of TripJack, highlighted the budget’s importance in reducing operational costs and enhancing market competitiveness for travel agents. He stated, “The travel and tourism industry anticipates that the Union Budget will address key challenges and foster sustained growth. Rationalizing GST rates for travel agents and introducing input tax credits can reduce operational costs and enhance market competitiveness. Simplifying compliance processes can further improve administrative efficiency for businesses. Emphasizing digitization and targeted skill development programs can empower travel agents to adapt to emerging industry trends. Additionally, promoting domestic and inbound tourism through innovative awareness campaigns and eco-friendly initiatives can drive sustainable development and bolster the sector’s long-term potential.”
Boosting Entrepreneurship and Innovation in Travel Startups
Echoing a similar sentiment, Amar Nagaram, Founder and CEO of Virgio, emphasized the importance of innovation, sustainability, and inclusive growth in India’s entrepreneurial ecosystem. “As the Union Budget FY25-26 approaches, we at Virgio are eager to see a focus on innovation, sustainability, and inclusive growth, which are essential for shaping the future of India’s entrepreneurial ecosystem. For D2C start-ups, we hope for initiatives that enhance access to affordable logistics, robust digital infrastructure, and streamlined cross-border trade, enabling international scalability. Expanding tax incentives, simplifying compliance frameworks, and introducing funding schemes to drive innovation in technology and sustainability would be invaluable. Encouraging collaborations between MSMEs and larger corporations can further catalyze long-term economic growth.”
Infrastructure and Connectivity: A Game Changer for Tourism
Dr. Sanjay Sethi, Managing Director & Chief Executive Officer of Chalet Hotels Limited, praised the government’s push for improved infrastructure and connectivity. “Key measures, including 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.”
Mr. Navneet Nagpal, Principal Consultant and Director at Spectra Hospitality Services, called the budget visionary. “The expansion of the UDAN scheme will significantly enhance regional connectivity and unlock tourism potential. The budget’s commitment to investing in hospitality training programs at established Institutes of Hotel Management (IHMs) will strengthen the industry’s talent pipeline.”
Tax Incentives and Their Impact on Domestic Tourism
Anand Vardarajan, Chief Business Officer at Tata Asset Management, focused on the tax benefits introduced in the budget. “Tourism was one of the significant contributors to services in GDP in FY24. The announcement of developing 50 top tourist destinations in a holistic way is a big step to boost this sector further. Additionally, the increase in tax exemption limits up to Rs. 12 lacs undoubtedly puts more money in the pockets of individuals. Some of the additional income can now be squirrelled into SIPs for long-term investment, benefiting the financial planning of individuals while also boosting the tourism industry.”
Rajesh Ghanshani, Director of Partnerships at STAAH, applauded the infrastructure status given to hotels. “Providing infrastructure status to hotels in select tourist destinations will undoubtedly ease access to financial resources and enable much-needed development in key regions. Additionally, the introduction of initiatives like the promotion of medical tourism and the provision of Mudra loans for homestays will create avenues for rural tourism within the hospitality sector.”
Enhancing India’s Global Tourism Appeal
Mr. Shikhar Aggarwal, JMD of BLS International, hailed the budget as a “visionary leap forward.” He emphasized that “the development of 50 iconic tourist sites in collaboration with states will significantly enhance India’s global appeal as a premier travel destination. The extension of MUDRA loans to homestays and the harmonized scheme for hotels will empower local entrepreneurs while ensuring standardized, high-quality hospitality infrastructure. Furthermore, the special focus on Buddhist circuits and spiritual tourism opens new avenues for niche travel experiences.”
Lucas Ramos, Senior Director, Travel & Membership – Asia, Pacific & India at RCI, called the budget “a comprehensive, future-ready travel ecosystem.” He stated, “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.”
Regional and Religious Tourism Growth
Aditya Sanghi, CEO of Hotelogix, highlighted the potential of religious tourism. “I welcome the government’s commitment to enhancing tourism across 50 destinations linked to Lord Buddha’s journey. The expected influx of visitors will spur the development of new hotels and infrastructure, significantly supporting India’s growing religious tourism sector.”
Dharamveer Singh Chouhan, Co-founder & CEO of Zostel, also emphasized the importance of sustainable tourism. “The plan to develop the top 50 tourism sites in collaboration with states, along with including hotels in the harmonized infrastructure list, is a significant step toward boosting the sector.”
Tourism and Economic Growth
Mr. Jatinder Paul Singh, CEO and Co-founder of Viacation, pointed to the broader economic impact. “The Union Budget 2025’s focus on enhancing tourism infrastructure, improving connectivity, and supporting adventure tourism provides a promising outlook for experiential travel in India.”
Arun Bagaria, Co-Founder & CEO of TravClan, shared similar sentiments. “The government’s plans to develop 50 tourist destinations, enhance e-visa facilities, and introduce visa fee waivers for select countries are encouraging steps that will help create a more vibrant and inclusive tourism ecosystem.”
The Union Budget 2025-26 presents a holistic and ambitious vision for the travel and tourism industry, ensuring improved connectivity, infrastructural development, and enhanced accessibility. Industry leaders are optimistic that these measures will drive economic growth, create employment, and position India as a premier global tourism destination. As the sector continues to expand, the collaboration between public and private enterprises will play a crucial role in transforming India’s tourism landscape.
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