Budget 2025: Development of tourist sites to push for medical tourism, key highlights for tourism and hospitality sector

Pic: PTI/iStock

India's Finance Minister Nirmala Sitharaman, while presenting her eighth consecutive budget on February 1, announced several measures for the tourism and hospitality sectors.

According to Economic Survey 24-25, the tourism sector's contribution to GDP regained the pre-pandemic level of 5 per cent in FY23. The sector created 7.6 crore jobs, and international tourist arrivals (ITAs) in India also rebounded to pre-pandemic levels in FY23. The tourism and hospitality sector are key drivers of India's economic growth.

In Budget 2025, Sitharaman introduced some new measures, and also built on the ones introduced in last year's budget.

Union Budget 2025 key highlights - Tourism and hospitality

In addition to focusing on general development of tourist sites, the measures also advocated for promotion of medical and spiritual tourism.

The key highlights include:

• The government will develop top 50 tourist sites in the country. This will be done in partnership with states, and is expected to generate employment, boost infrastructural and showcase India's cultural heritage.
• In a boost for the hospitality sector, MUDRA loans will be extended for homestays, to enable small businesses to enter the tourism sector.
• In efforts to boost tourism in the country, FM Nirmala Sitharam also said that medical tourism and ‘Heal in India' will be promoted in partnership with the private sector.
• Building on the push for spiritual tourism from last year's budget, the government will place special focus on destinations related to life and times of Lord Buddha.

While these measures are expected to boost tourism in India, some key expectations of the sector like GST rationalisation and simplification of visa processes have been overlooked.

Also Read: Union Budget 2025: GST rationalisation to better visa processes, key expectations of the travel and tourism sector

A look back at Union Budget 2024 - Tourism and hospitality

Union Budget 2024 measures gave a push to spiritual tourism, announcing development of some spiritual sites. Key highlights for the travel, tourism and hospitality industries from the previous budget include:

• Comprehensive development of the Vishnupad Temple at Gaya and Mahabodhi Temple at Bodh Gaya in Bihar to transform them into world class pilgrim and tourist destinations
• Development of Rajgir, which holds religious significance for Hindus, Buddhists, and Jains
• Government to support the development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature
• Assistance for the development of Odisha's scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes, and pristine beaches
• A simpler tax regime proposed for foreign shipping companies operating domestic cruises in the country, to realise the potential of cruise tourism