In a major boost to India's tourism sector, the government has unveiled a comprehensive plan to develop the country’s top 50 tourist destinations in collaboration with state governments. This initiative seeks to improve infrastructure, stimulate growth driven by employment and establish India as a leading global tourist hotspot, said finance minister Nirmala Sitharaman in the Budget 2025-26 speech.
The chosen tourist spots will be developed using a 'challenge mode', motivating states to engage actively and compete by submitting the most persuasive tourism development plans, she noted.
States will have to allocate land for essential infrastructure projects, ensuring local engagement and smooth project implementation.
Furthermore, hotels in these locations will be added to the Harmonised Master List of infrastructure, allowing them to receive advantages like simplified financing and incentives, the minister said.
The budget allocation for the Union Ministry of Tourism for the fiscal year 2025-2026 has seen a substantial increase to Rs 2,541.06 crore, compared to Rs 850.36 crore in the previous year.
Generating employment and skill development was the focal point of the announcements for the tourism sector. Intensive skill development programmes for the youth, focusing on hospitality management and related fields.
The ministry has received an allocation of Rs 60 crore for skill development and training programs to meet the growing need for skilled workers in the tourism industry.
Institutes of Hospitality Management will play a pivotal role in equipping young professionals with the necessary skills to excel in the tourism industry, Sitharaman noted.
Acknowledging the value of homestays in offering genuine cultural experiences, the government announced MUDRA loans to motivate people to set up and run homestays, thus fostering entrepreneurship and expanding lodging choices for travelers.
States demonstrating effective destination management, including the provision of tourist amenities, maintenance of cleanliness, and robust marketing efforts, will be rewarded with performance-linked incentives, fostering healthy competition and encouraging best practices, said Sitharaman.
The Union government also promised to make travelling to tourist destinations smoother by improving roads, railways and air connectivity. This includes the development of 50 additional airports, heliports, water aerodromes and other landing areas to improve regional.
Motivated by the achievements of the UDAN scheme, which has allowed 15 million middle-class people to enjoy quicker travel by linking 88 airports and activating 619 routes, the government intends to introduce an updated version to improve regional connectivity. This new scheme, Sithraman said, aims to connect 120 more destinations and transport 40 million passengers over the next ten years.
It will also aid in the development of helipads and smaller airports in hilly, aspirational and northeastern districts, ensuring inclusive growth and accessibility.
Further, to attract international tourists, the government intends to implement streamlined e-visa services and provide visa-fee exemptions for specific tourist groups, easing the entry procedure and making India a more inviting destination.
The government will persist in enhancing sites of spiritual and religious importance, building on past efforts. There will be a particular emphasis on locations connected to the life and legacy of Lord Buddha, with the goal of drawing both local and international visitors and boosting cultural heritage tourism.
Finally, the government, collaborating with the private sector, will advance medical tourism through the ‘Heal in India’ initiative. This effort encompasses enhancing healthcare services and simplifying visa regulations for medical tourists, aiming to establish India as a center for affordable and high-quality medical treatment.