The Federation of Associations in Indian Tourism & Hospitality (FAITH) welcomes the Union Budget 2025, which lays a strong foundation for investment-driven and employment-led growth in India’s tourism sector. The government’s intent to develop key destinations, enhance infrastructure, and boost inbound tourism reflects a progressive and forward-thinking approach.

Aashish Gupta, Consulting CEO, FAITH, shared his perspective on the budget’s impact:

“The intent in the Union Budget is progressive and in the right direction. It covers multiple parameters under the  Investment in Tourism for Employment-led Growth theme.

New tourism destinations will emerge by developing 50 top tourist sites in collaboration with states through the challenge mode. Including hotels in the infrastructure list can fast-track hotel room supply in these destinations, addressing growing demand and enhancing hospitality capacity.

Existing tourism destinations will benefit from performance-linked incentives given to states for effective destination management, which will ensure better maintenance, visitor experiences, and infrastructure improvements.

Inbound tourism will receive a stimulus through the e-visa waiver for select tourism groups. In contrast, medical and Buddhist tourism will be boosted under the ‘Heal in India’ initiative and the expansion of Buddhist circuit destinations.

Alternative accommodations will also grow with MUDRA loans for homestays, enabling the rise of unique, localized stay experiences that further strengthen India’s hospitality ecosystem.

The UDAN RCS scheme’s expansion to 120 destinations, targeting four crore air travelers and including helicopter and hill routes, will enhance connectivity across mainstream, remote, and hill destinations. Additionally, modifications in shipbuilding policies are expected to boost cruise tourism, creating new opportunities in the segment.

The proposed amendments in TCS slabs on remittances will benefit travel agents, making international travel planning more seamless. Furthermore, the government’s focus on skill development in hospitality through enhanced support for Hotel Management Institutes will strengthen the workforce and create new employment avenues in the tourism sector.

Lastly, modifications in the direct tax code will give Indian citizens more disposable income, leading to increased spending on tourism, travel, and hospitality.”