New Delhi, Feb 1 (PTI) Finance Minister Nirmala Sitharaman's announcements in the Union Budget 2025-26 show a clear intent to harness the potential of the travel and tourism sector, make India a top global tourist destination and create new opportunities for growth, jobs and innovation, industry players said on Saturday.
Terming the budget as progressive, they said the focus on tourism and job creation, prioritising infrastructure, improving access, incentivising investment, and expanding reach beyond established hubs augur well for the sector.
"Budget is progressive, especially with its focus on tourism and job creation. The government's commitment to developing 50 new destinations, improving infrastructure, is promising," Hotel Association of India (HAI) President K B Kachru said.
He further said the FY26 budget very well highlights the importance of promoting spiritual and medical tourism with neighbouring countries and simplifying visa processes to enhance international travel.
"Overall, the initiatives taken by the government in this year's budget are the steps in the right direction for the industry," Kachru noted.
Expressing similar views, MakeMyTrip Co-founder & Group CEO, Rajesh Magow said the finance minister's announcements reflect a clear intent to harness the potential of the travel and tourism sector by prioritising infrastructure, improving access, incentivising investment, and expanding its reach beyond established hubs.
"Strengthening regional connectivity through the modified UDAN scheme will unlock new corridors of travel, bringing deeper parts of India into the tourism fold. The 50-year interest-free loan to state governments will drive infrastructure development at the destination level, thereby contributing to the tourism growth story," he added.
The challenge-mode approach to developing 50 destinations, backed by performance-linked incentives, shifts the focus to outcome-driven execution, encouraging states to compete and innovate in destination management, Magow said.
"Equally important is the structured push for hospitality. Including hotels in the harmonised infrastructure list across 50 destinations will unlock long-term financing and drive investment, while extending Mudra loans to homestays ensures that smaller entrepreneurs and local communities are equally part of this growth story," he added.
Federation of Hotel and Restaurant Associations of India (FHRAI) Vice President, Pradeep Shetty said the focus on medical and wellness tourism through the 'Heal-in-India' initiative in the budget is a forward-thinking move that will strengthen India's position as a global leader in healthcare.
"Additionally, the inclusion of hotels in these destinations in the harmonious master list is a significant move. This aligns with our long-standing request for granting of infrastructure status to the hospitality industry. This will facilitate access to cheaper, long-term financing, enabling hotels in these newly developed destinations to upgrade their facilities and offer world-class services, further boosting the sector," he said.
Royal Orchid Hotel CMD Chander Baljee said the budget offers a positive outcome for the industry and the government's focus on speedier travel and a modified UDAN scheme connecting 120 new destinations and facilitating travel for nearly 4 crore passengers in the next 10 years will aid much-needed penetration for increased tourism demand in the North East region.
"The move will not only amplify the efforts of private players but will offer an opportunity to put India in the global map," he added.
Jaypee Hotels & Resorts Managing Director Manju Sharma noted that the focus on improving ease of travel, giving streamlined facilities, and potential visa fee waivers for select tourist groups will incentivise travel.
"The special emphasis on spiritual and religious tourism, particularly destinations related to Lord Buddha, will attract more visitors. These comprehensive measures will drive India's growth as a premier tourism destination," she added.
Mayfair Spring Valley Resort DGM Pardeep Kumar Siwach also pointed out that the emphasis on developing top destinations and the inclusion of hotels in the harmonised infrastructure list will further strengthen the hospitality sector. PTI RKL
Mahesh Iyer - MD and CEO, Thomas Cook (India), said the budget takes significant strides to strengthen India's travel and tourism sector by focusing on connectivity, infrastructure, and policy reforms.
"The increase in the tax exemption ceiling to Rs 12 lakh and rationalisation of Tax Collected at Source (TCS) on remittances will support discretionary spending on travel, both domestic and international. Additionally, targeted investments in medical and religious tourism, including the 'Heal in India' initiative and visa relaxations, position India as a hub for world-class, affordable care," he added.
SOTC Travel Managing Director and CEO Vishal Suri said, by including hotels in the harmonised infrastructure list, the Budget streamlines investment in the sector, while Mudra loans for small enterprises and homestays will foster entrepreneurship at grassroots level. Skill development initiatives also play a vital role in positioning India as a globally competitive tourism market.
With these targeted reforms and investments, the Budget lays a solid foundation for India to emerge as a premier global tourism destination, driving economic growth, cultural exchange, and job creation, he added.
ixigo Group CEO Aloke Bajpai said, "Spiritual tourism has been witnessing strong growth in the last two years."
Bookings to destinations like Varanasi, Gaya, Shirdi, Puri, Haridwar, and Vaishno Devi increased by 100-150 per cent YoY on ixigo last quarter, he said, adding that initiatives like visa fee waivers will further enhance India's appeal as a global destination.
Atlys Founder and CEO Mohak Nahta said, the budget announcements are significant steps toward strengthening India's position as a global travel hub.
He said, streamlining visa access has consistently been a key driver of tourism growth, and these measures will enhance inbound travel while boosting employment and local economies.
Krishna Rathi, Senior Country Director, India Subcontinent and MEA at Agoda, also hailed the budget announcements on investments in the expansion of the UDAN scheme to connect 120 new destinations, and enhanced support for homestays, among others.
BLS International JMD Shikhar Aggarwal stated that the government's focus on transforming India's tourism landscape through strategic partnerships and policy reforms is a visionary leap forward.
"We commend the government's holistic approach to fostering public-private partnerships and creating an ecosystem where tourism becomes a catalyst for economic empowerment. These measures will not only attract global travellers but also strengthen India's position as a hub for cultural, medical, and sustainable tourism," he added.