Union Minister of Finance and Corporate Affairs Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament on 1st Feb 2025.

She unveiled plans to develop 50 tourist destinations, boosting the tourism budget to INR 2,541.06 crore, focusing on employment-led growth. We bring a summary of the post- budget reactions from the travel and hospitality industry.

Hiring in travel, healthcare and aviation

Balasubramanian A, Senior VP and Business Head at TeamLease said: “The Finance Minister’s announcements will give a strong push to India’s tourism, healthcare, and aviation sectors, creating jobs and driving economic growth. Easier visa norms under ‘Heal in India’ will attract more medical tourists, boosting hospitals, hospitality, and foreign exchange earnings. Opening up PM GatiShakti data to private players and developing 22 key destinations in partnership with states will strengthen tourism infrastructure and local economies. The expansion of UDAN to 120 new destinations and new greenfield airports in Bihar will improve regional connectivity, making air travel more accessible to the middle class while supporting trade and investment. These steps position India as a key global destination for tourism, healthcare, and aviation-driven growth.”

Performance-linked incentives for states

Hari Ganapathy, Co-founder, Pickyourtrail

“The Union Budget 2025-26 makes a strong statement about India’s ambitions to position itself as a global tourism hub. The focus on developing 50 key tourist destinations, expanding the UDAN scheme for regional connectivity, and strengthening skill development in hospitality signals a long-term vision for making India a more seamless and traveler-friendly destination. Tourism has long been a powerful economic engine, and these measures ensure that we’re not just growing the sector but doing so in a way that is sustainable, inclusive, and globally competitive.

The performance-linked incentives for states to enhance their tourism ecosystems are a smart move, encouraging localized improvements in infrastructure, cleanliness, and experience-building. The expansion of visa-on-arrival facilities and the ‘Heal in India’ initiative for medical tourism further reinforce India’s commitment to making travel easier and more accessible.

Equally critical is the push for airport infrastructure expansion, with new greenfield airports in Bihar and the expansion of Patna Airport and Bihta. The growth of India’s aviation network will not only enhance domestic travel but also make secondary and tertiary cities more accessible to international tourists. The UDAN expansion covering 120 new destinations is a game-changer—ensuring that travel demand isn’t just concentrated in metros but extends to aspirational districts, hilly terrains, and high-potential yet underutilized destinations. More than just connectivity, this move supports local economies, creating opportunities for small businesses and tourism entrepreneurs across the country.

While these are commendable steps, there’s still an opportunity to reimagine India’s global tourism positioning. The real impact will come from execution—how well we bridge infrastructure gaps, streamline traveler experiences, and create compelling, high-quality travel offerings that make India a preferred destination not just for international tourists but for domestic travelers as well. This budget sets the foundation, and it’s now up to the industry and stakeholders to turn these policy moves into real impact.”

Strengthening regional tourism and connectivity in India

Dharamveer Singh Chouhan, Co-founder & CEO, Zostel said: We appreciate the government’s continued commitment to strengthening regional tourism and connectivity in India. 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. Enhanced connectivity, better infrastructure, and a strong push for medical and regional tourism will make it easier for both domestic and international travelers to explore India’s hidden gems. Since its inception, Zostel has been at the forefront of sustainable and experiential tourism, working alongside locals and governments to spotlight lesser-known destinations. We will continue this mission and would be happy to collaborate with Bihar and other state governments to promote local employment, culture, and cuisine through responsible tourism.

Inclusion of hotels in these destinations in the harmonious master list is a significant move

K Syama Raju, President of FHRAI added: “I am happy to see the Union Budget 2025 focus on growing India’s tourism sector. The plan to develop the top 50 tourism destinations in partnership with state governments is a major initiative. This collaboration will not only improve infrastructure but also help spread tourism across the country, attracting more visitors and benefiting local communities. 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.
The focus on medical and wellness tourism through the ‘Heal-in-India’ initiative in the Union Budget 2025 is a forward-thinking move that will strengthen India’s position as a global leader in healthcare. India has already earned a reputation for providing world-class medical treatments at a fraction of the cost found in developed countries. By promoting ‘Heal-in-India,’ the government aims to further capitalize on this strength, attracting international patients seeking affordable, high-quality healthcare services. This initiative will not only boost medical and wellness tourism but will also create a platform for India’s healthcare industry to expand its global footprint. With the support of the government, healthcare facilities across the country will be encouraged to offer specialized treatments and services, making India an attractive destination for patients from both developed and developing nations.
The introduction of visa fee waivers and e-visa options for certain tourist groups will make India an even more attractive destination. Simplifying the visa process will encourage more international visitors, boosting tourism and further contributing to the economy.
The government’s focus on promoting religious tourism is also noteworthy. India’s rich spiritual and cultural heritage is a major draw for both domestic and international tourists, and the efforts to enhance infrastructure at key religious sites will create more organized, accessible, and enjoyable experiences for pilgrims and travelers alike. This will help further establish India as a leading destination for religious tourism, driving both tourism revenue and cultural exchange.
The modified UDAN scheme, aimed at enhancing regional connectivity to 120 new destinations and carrying an additional 4 crore passengers over the next 10 years, is another important initiative. This will make travel more accessible to a larger number of people, driving tourism to both popular and emerging destinations and improving economic opportunities for local communities.
The introduction of Mudra loans for homestay businesses is another positive step. It will give local entrepreneurs the chance to start and grow small tourism businesses, especially in lesser-known areas. This will help create more jobs and encourage tourism in these regions.
The National Geospatial Mission to improve mapping and spatial data will aid in better planning and development of tourism infrastructure. Overall, these measures show that the government is committed to making India a top global tourism destination and creating new opportunities for growth, jobs, and innovation in the sector.”

Prioritizing e-visas and visa fee waivers

Mohak Nahta, Founder and CEO of Atlys adds: “The government’s commitment to developing 50 tourist destinations and prioritizing e-visas and visa fee waivers is a significant step toward strengthening India’s position as a global travel hub. 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.
The emphasis on spiritual and medical tourism aligns with India’s unique strengths, catering to global travellers seeking immersive cultural experiences and world-class healthcare. These initiatives will not only attract more visitors but also create new opportunities for businesses in hospitality, wellness, and allied sectors, further driving economic growth.”

Heal in India’ initiative will further diversify India’s tourism offerings

Rikant Pittie, CEO and Co-Founder, EaseMyTrip, “The Union Budget 2025-26 presents a transformative vision for India’s travel and tourism sector, reinforcing its role as a key driver of economic growth and employment. The expansion of the UDAN scheme, connecting 120 new destinations and enabling 4 crore additional passengers over the next decade, will significantly enhance regional connectivity, making travel more accessible and affordable for millions. The facilitation of greenfield airports in Bihar further underscores the government’s commitment to strengthening aviation infrastructure across the country.Moreover, the proposed development of 50 top tourist destinations, coupled with performance-linked incentives for states, streamlined e-visa facilities, and visa-fee waivers, will position India as a more attractive global travel destination by easing out travel infrastructure. Initiatives like skill development programs, MUDRA loans for homestays, and enhanced connectivity will empower local communities, create employment opportunities, and enable businesses to thrive more efficiently. The emphasis on spiritual tourism, particularly in destinations linked to Lord Buddha, and the strategic push for medical tourism through the ‘Heal in India’ initiative will further diversify India’s tourism offerings, attracting travelers from across the world. With a focus on seamless travel, enhanced infrastructure, and an enabling policy framework, this budget lays a strong foundation for a new era of tourism-led economic growth, ensuring India remains a top destination for both domestic and international travellers.”

Modified UDAN scheme targeting 120 new destinations.

Suresh Khadakbhavi, CEO, Digi Yatra Foundation said: “We welcome the government’s visionary decision to expand India’s aviation infrastructure through new greenfield airports in Bihar and the modified UDAN scheme targeting 120 new destinations. These announcements reflect the government’s commitment to strengthening regional air connectivity and making air travel accessible to more Indians. The remarkable expansion of UDAN has already connected 88 airports and served 1.5 crore middle-class travellers. As air connectivity grows to accommodate 4 crore additional passengers, we look forward to facilitating the smooth movement of passengers at a wider number of airports.

The government’s emphasis on medical tourism and the ‘Heal in India’ initiative, coupled with easier visa norms, marks a significant step toward positioning India as a global healthcare destination. The integration with PM Gatishakti’s data infrastructure will enable synchronised development across the aviation sector. As the government partners with states to develop 22 premier tourist destinations, we are committed to supporting this growth by expanding our technology, thereby contributing to India’s emergence as a global aviation leader and strengthening Digital India.”

Visa-free access for select countries and streamlined e-visa processes
Commenting on the Union Budget India 2025 for the travel and tourism sector, Anuj Rathi, Chief Business and Growth Officer, Cleartrip said, “India’s travel industry is poised for growth, with the government’s focus on infrastructure, sustainable tourism, and medical tourism. The expansion of UDAAN, the development of 50 key tourist destinations, and support for homestays offer significant opportunities. Cleartrip aims to leverage these efforts to provide seamless, affordable travel experiences for all.”

Navneet Nagpal, Princpal Consultant and Director, Spectra Hospitality Services an expert in the luxury hotel industry said: “This year’s Union Budget marks a significant turning point for India’s tourism sector, particularly in attracting foreigntravelerss—a segment that has long needed greater focus. The introduction of visa-free access for select countries and streamlined e-visa processes will play a crucial role in enhancing inbound tourism, positioning India as a more accessible and attractive global destination.

The announcement of 50 key destinations to be developed under the challenge mode is a transformative step. By curating world-class experiences and investing in infrastructure, India can strengthen its appeal as a premier hub for leisure, heritage, and experiential tourism. Additionally, the renewed emphasis on Buddhist Circuit tourism is a strategic move to boost footfall from Southeast Asian countries, tapping into an underutilized yet high-potential market.
Equally important is the government’s focus on skill development through IHMs and financial support for homestays via Mudra loans. These initiatives will not only elevate service standards but also create meaningful economic opportunities at the grassroots level, fostering a more inclusive tourism ecosystem.
With this renewed strategic push for foreign tourism, India’s hospitality sector is poised for accelerated growth, increased revenue generation, and a stronger presence on the global tourism map. The emphasis on public-private partnerships (PPP) and incentive-linked support for tourism infrastructure further strengthens the industry’s long-term sustainability and competitiveness.”

Budget aligns well with the industry’s need for support 

Rajesh Ghanshani, Director of Partnerships, STAAH said: We are glad to learn that the Union Budget 2025-26 presents a promising outlook for the hospitality space. The government’s focus on 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. This budget aligns well with the industry’s need for support in expanding its reach, fostering local businesses, and driving sustainable growth in 50 select destinations. With these measures, we look forward to seeing a more vibrant hospitality ecosystem that will benefit both businesses and the communities they serve.

“We appreciate the government’s forward-looking vision for India’s tourism sector as outlined in the Budget FY2025-26 presented by Finance Minister Nirmala Sitharaman. The comprehensive measures announced demonstrate a clear commitment to strengthening tourism infrastructure and enhancing the overall visitor experience across the country. The plans to develop 50 premier tourist destinations, along with the successful air connectivity to 120 new destinations, will enable an additional four crore passengers over the next 10 years to explore India, showcasing promising growth potential. The emphasis on diverse segments, including spiritual, religious, and medical tourism, suggests potential opportunities for varied tourism experiences across India. As industry stakeholders, we welcome these developments and look forward to contributing to India’s growing hospitality, travel, and tourism landscape, ” added Ayu Tripathi, Director, Aahana Resort

Infrastructure development and aviation expansion

Amit Goyal, Regional Managing Director, South Asia – Project Management Institute (PMI) said: “The Union Budget for 2025-26, presented by the Finance Minister, lays a visionary roadmap for India’s growth and resilience, embodying the spirit of Atmanirbharta (self-reliance). With a strong emphasis on education and skill development, the budget aims to achieve 100% literacy and enhance the quality of education. Initiatives such as the expansion of the PM Research Fellowship program, and the establishment of three AI Centres of Excellence with an allocation of ₹500 crore. The enhanced allocation to medical education reflects a robust focus on strengthening India’s healthcare infrastructure, addressing both immediate needs and long-term capacity building and also highlights India’s investment in its human capital.

The budget also prioritizes infrastructure development, aviation expansion, and innovation, positioning India as a global hub for large-scale projects. This creates significant demand for skilled project management professionals who will be pivotal in executing these ambitious ventures, especially critical ones like the advancement of foundational geospatial infra and data under the PM Gati Shakti Scheme. Moreover, the emphasis on sustainability, through initiatives like Clean Tech, ensures that India’s growth trajectory aligns with global environmental goals, fostering a greener and more sustainable future. In essence, the 2025-26 budget is a forward-looking blueprint that empowers the youth, strengthens the nation’s infrastructure, and champions innovation, laying the groundwork for a prosperous and self-reliant Viksit Bharat.”