Budget 2025-26: 50 new tourist spots on anvil to boost jobs
Union FM Nirmala Sitharaman unveiled plans to develop 50 tourist destinations, boosting the tourism budget to ₹2,541.06 crore, focusing on employment-led growth.
Union finance minister Nirmala Sitharaman on Saturday announced a comprehensive plan to transform 50 destinations into world-class tourist hubs as part of the Union Budget 2025, marking a significant push to develop India’s tourism sector.
The initiative, which includes development of Buddhist circuits and medical tourism facilities, comes with a substantial increase in the tourism ministry’s budget allocation to ₹2,541.06 crore for 2025-26, up 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 in her budget speech on Saturday. She explained that the development would follow a “challenge mode,” requiring states to contribute land for infrastructure development.
The budget includes several key initiatives to boost tourism, including extension of MUDRA loans to homestays and small hospitality enterprises, e-visa facilitation and visa fee waivers for select tourist groups, launch of ‘Heal in India’ program for medical tourism, development of Buddhist heritage sites and inclusion of hotels in the infrastructure harmonised list.
Union tourism and culture minister Gajendra Singh Shekhawat welcomed the announcements. “Top 50 tourist destinations will be developed in collaboration with the state governments, and hotels in these destinations will be added to the infrastructure harmonised list,” he said in a statement on X.
The government has significantly increased infrastructure funding, with the Swadesh Darshan scheme receiving ₹1,900 crore, up from ₹350 crore last year. The PRASHAD scheme for pilgrimage tourism maintains its allocation at ₹240 crore.
Director general of tourism, Mughda Sinha, outlined the approach’s three pillars: “Triangulation of attractions through destination development, accommodations by making hotels part of the harmonised list for infrastructure development, and accessibility through modified UDAN, ease of visa regime.”
Industry experts largely welcomed the announcements while noting some concerns. Aashish Gupta, consulting CEO of the Federation of Associations in Indian Tourism & Hospitality (FAITH), said “new tourism destinations will emerge” due to the proposed plan and highlighted the potential boost to medical and Buddhist tourism segments.
However, Travel Agents Association of India (TAAI) head Jyoti Mayal expressed concerns about international marketing resources. While the budget for promoting India globally has increased to ₹33 crore from ₹3 crore, it remains significantly lower than 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,” she said.
The Economic Survey 2024-25, released a day before the budget, showed the tourism sector contributing 5% to GDP in FY23, matching pre-pandemic levels. The sector generated 76 million jobs, with international tourist arrivals returning to pre-pandemic levels. India captured 1.45% of global international tourist arrivals in 2023, earning $28 billion in foreign exchange and ranking 14th globally in tourism receipts.
Another significant announcement was the launch of the Gyan Bharatam Mission, which seeks to preserve and protect India’s manuscript heritage. Sitharaman said the initiative will involve academic institutions, museums, libraries, and private collectors in documenting and conserving over one crore manuscripts. The project aims to create a National Digital Repository of Indian knowledge systems, ensuring that the country’s rich intellectual heritage is preserved and accessible for future generations.