As the 2025 Union Budget draws near, India’s tourism and hospitality sectors eagerly anticipate announcements that could shape their future growth trajectory. Recognized as one of the key pillars of India’s economy, these industries contribute significantly to employment generation, foreign exchange earnings, and cultural promotion. With an eye on accelerating post-pandemic recovery, stakeholders are hoping for strategic incentives, infrastructure investments, and policy reforms to bolster domestic and international tourism. Key players in the sector are advocating for reduced GST rates, enhanced financial support for small and medium enterprises, and measures to promote sustainable tourism practices. Additionally, initiatives such as improved connectivity, the development of heritage sites, and marketing campaigns to position India as a global tourist hub are expected to take center stage. The upcoming budget presents a critical opportunity to address these demands and unlock the sector’s full potential in driving economic and cultural enrichment.
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According to Mr. Pardeep Kumar Siwach, DGM, Mayfair Spring Valley Resort
As the 2025 budget approaches, the tourism industry hopes for a strong focus on better infrastructure and sustainability. Last year’s steps to promote rural tourism and improve connectivity were well-received, and we now look forward to more investments in emerging destinations. Resorts need tax relief on investments and GST adjustments to stay profitable. Funding for skill development and workforce training is also important to improve service quality.
Greater attention to eco-tourism and sustainable practices, along with policies that encourage public-private partnerships, can drive growth in tourism. Improving infrastructure and accessibility in Northeast India will make the region more attractive to visitors, boosting its growth in a sustainable way. Combining eco-tourism with opportunities for MICE (Meetings, Incentives, Conferences, and Exhibitions) events can turn Northeast India into a leading destination for tourism and global events, putting it firmly on the world tourism map.
According to Mr. Tushar Parihar, Founder, Kaner Bagh – A Heritage Boutique Hotel
The Union Budget 2025 offers an opportunity to strengthen the hospitality sector and support sustainable tourism. We request the government to prioritize tax incentives for heritage property restoration, enabling us to preserve cultural treasures. Improved infrastructure and last-mile connectivity to tier-2 cities like Udaipur would boost tourist arrivals. Additionally, a reduction in GST for boutique hotels would make India a competitive global destination.
Sustainability initiatives deserve attention, with grants for eco-friendly practices like solar power and water conservation. Lastly, investments in skilling programs for hospitality professionals will enhance service standards and create local employment.
According to Mr. Dharamveer Singh Chouhan, Co-founder and CEO of Zo World and Zostel
The tourism industry is a vital pillar of India’s economy, supporting millions of jobs across cities and villages. In the upcoming budget, I hope to see targeted measures to make travel more affordable and accessible for all. Specifically, the government could lower GST rates for brands operating in budget-friendly and hostel categories. This would allow operators to pass on the benefits to travelers, encouraging more people to explore India’s rich cultural and natural diversity.
Additionally, introducing public-private partnership (PPP) models or incentivized schemes to develop new tourist destinations can unlock the untapped potential of many regions. Providing affordable land or tailored schemes for tourism operators could help create more diverse travel options and boost the sector’s contribution to the economy.
There is also a pressing need to promote eco-tourism. Offering incentives for sustainable practices can not only protect the environment but also ensure that tourism growth is inclusive and responsible. Supporting eco-friendly travel businesses aligns with global sustainability goals and enhances India’s reputation as a conscientious travel destination.
According to Mr. Chirag Agarwal, Co-founder & COO, TravClan
Tourism is a powerful job creator, with the potential to generate millions of opportunities across sectors like hospitality, transportation, and technology, while also driving significant GDP growth.
The government’s strides in integrating advanced technologies at airports have laid a solid foundation for the industry’s digital transformation. Building on this progress, it is crucial to further accelerate digitalization and invest in robust travel infrastructure to fully unlock tourism’s potential.
This year’s budget presents an opportunity to recognize tourism as a long-term investment with transformative benefits. By revitalizing local economies, celebrating cultural heritage, and solidifying India’s position as a global destination, the 2025 budget could pave the way for sustained growth and innovation in this high-impact sector.
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