In a bold move to revitalize India’s tourism sector and create millions of jobs, Union Finance Minister Nirmala Sitharaman announced a sweeping initiative to transform 50 destinations into world-class tourist hubs as part of the Union Budget 2025-26. The announcement, made during her budget speech on February 1, 2025, signals a significant shift toward employment-led growth in the tourism industry, which contributes 5% to India’s GDP and supports 76 million jobs.
The plan, which includes the development of Buddhist circuits, medical tourism facilities, and heritage sites, comes with a substantial boost in funding. The tourism ministry’s budget allocation has been increased to ₹2,541.06 crore for 2025-26, a dramatic jump from the revised estimate of ₹850.36 crore in 2024-25.
“The government’s approach to tourism will focus on employment-led growth,” Sitharaman said, emphasizing that the development of these destinations will follow a “challenge mode,” requiring states to contribute land for infrastructure projects.
Key Initiatives to Drive Tourism Growth
The budget outlines several measures to attract both domestic and international tourists:
- MUDRA Loans for Homestays and Small Hospitality Enterprises: Expanding access to financial support for small-scale tourism businesses.
- E-Visa Facilitation and Visa Fee Waivers: Streamlining visa processes for select tourist groups to encourage international travel.
- ‘Heal in India’ Program: A new initiative to promote medical tourism, positioning India as a global hub for affordable healthcare.
- Buddhist Heritage Development: Enhancing infrastructure around Buddhist pilgrimage sites to attract spiritual tourists.
- Hotels on Infrastructure Harmonised List: Including hotels in the list will enable them to access government incentives for infrastructure development.
Union Tourism Minister Gajendra Singh Shekhawat welcomed the announcements, stating on X: “Top 50 tourist destinations will be developed in collaboration with state governments, and hotels in these destinations will be added to the infrastructure harmonised list.”
Infrastructure Funding Gets a Major Boost
The government has significantly ramped up infrastructure funding to support these initiatives. The Swadesh Darshan scheme, which focuses on developing theme-based tourist circuits, has seen its allocation soar to ₹1,900 crore, up from ₹350 crore last year. Meanwhile, the PRASHAD scheme, aimed at enhancing pilgrimage tourism, retains its allocation of ₹240 crore.
Mughda Sinha, Director General of Tourism, outlined the three pillars of the strategy: “Triangulation of attractions through destination development, accommodations by making hotels part of the harmonised list, and accessibility through modified UDAN and a simplified visa regime.”
Industry Reactions: Optimism with a Hint of Caution
Industry experts have largely praised the budget’s focus on tourism but flagged some concerns. Aashish Gupta, Consulting CEO of the Federation of Associations in Indian Tourism & Hospitality (FAITH), noted that the plan could lead to the emergence of new tourism destinations, particularly in the medical and Buddhist tourism segments.
However, Jyoti Mayal, President of the Travel Agents Association of India (TAAI), expressed concerns about the allocation for international marketing. While the budget for promoting India globally has increased to ₹33 crore from ₹3 crore, it remains a fraction of the ₹177 crore allocated for domestic tourism promotion. “If we truly want to position India as a premier global travel destination, we need a stronger push in international branding and outreach,” Mayal said.
Tourism Sector Rebounds to Pre-Pandemic Levels
The Economic Survey 2024-25, released a day before the budget, highlighted the sector’s recovery, with tourism contributing 5% to GDP in FY23—matching pre-pandemic levels. International tourist arrivals have also rebounded, signaling a strong recovery.
Preserving India’s Cultural Heritage
In addition to tourism, the budget introduced the Gyan Bharatam Mission, aimed at preserving and protecting India’s manuscript heritage. This initiative underscores the government’s commitment to safeguarding the country’s rich cultural legacy while driving economic growth through tourism.
As India sets its sights on becoming a global tourism powerhouse, the success of these initiatives will depend on effective implementation, collaboration with states, and a sustained focus on international marketing. For now, the plan offers a promising roadmap to transform India’s tourism landscape and create millions of jobs in the process.
—With inputs from government officials and industry experts