Budget 2025: Government to develop 50 tourist destinations in partnership with states

Sitharaman stated that land for key infrastructure development would be provided by the states, while hotels in these destinations would be included in the HML development plan.
The Indian government has announced an ambitious plan to develop 50 tourist destinations across the country in collaboration with state governments.
The Indian government has announced an ambitious plan to develop 50 tourist destinations across the country in collaboration with state governments.(Photo | PTI)
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NEW DELHI: The Indian government has announced an ambitious plan to develop 50 tourist destinations across the country in collaboration with state governments.

Presenting the Union Budget 2025 in Parliament on Saturday, Finance Minister Nirmala Sitharaman outlined several initiatives aimed at boosting tourism through investment-led growth and employment generation.

Sitharaman stated that land for key infrastructure development would be provided by the states, while hotels in these destinations would be included in the infrastructure harmonised master list (HML) development plan.

Additionally, she announced that MUDRA (Micro Units Development & Refinance Agency) loans would be extended to homestays, supporting small businesses in the tourism sector.

The finance minister also highlighted the government's continued emphasis on Buddhist tourism. “Continuing with the emphasis on places of spiritual and religious significance in the July Budget, there will be a special focus on destinations related to the life and times of Lord Buddha,” she said. In recent years, the Centre has been actively promoting Buddhist heritage sites.

The first Asian Buddhist Summit was held in Delhi last year, bringing together Sangha leaders, scholars, and practitioners to discuss the role of Buddha Dhamma in strengthening Asia. Similarly, a two-day international conference on ‘Shared Buddhist Heritage’ in 2023 gathered participants from Central Asia, East Asia, South Asia, and Arab countries. An international airport at Lord Buddha’s Parinirvana site in Kushinagar, Uttar Pradesh, was also inaugurated in 2021.

To enhance the skills of young professionals in the tourism sector, Sitharaman announced intensive skill-development programmes, including training in Institutes of Hospitality Management.

Other measures include improving ease of travel, enhancing connectivity to tourist destinations, and offering performance-linked incentives to states for better destination management. These incentives will focus on tourist amenities, cleanliness, and marketing efforts.

The minister further announced that the government would streamline e-visa facilities and introduce visa-fee waivers for certain tourist groups to attract more international visitors.

Lauding the budget proposals, K Syama Raju, president of the Federation of Hotel and Restaurant Associations of India (FHRAI), said, “This collaboration will not only improve infrastructure but also help spread tourism across the country, attracting more visitors and benefiting local communities. Additionally, the inclusion of hotels in these destinations in the harmonised master list is a significant move. The introduction of visa fee waivers and e-visa options for certain tourist groups will make India an even more attractive destination. Simplifying the visa process will encourage more international visitors, boosting tourism and further contributing to the economy.”

Sitharaman also announced measures to promote medical tourism under the ‘Heal in India’ initiative, in partnership with the private sector. The initiative will focus on capacity building and relaxed visa norms to attract more international patients seeking medical treatment in India.

Commenting on the budget, Lucas Ramos, senior director for Travel & Membership (Asia, Pacific & India) at Resort Condominiums International (RCI), said, “The budget underscores the Indian Government’s commitment to positioning tourism as a key pillar of economic growth, job creation, and global engagement. By developing top destinations in partnership with states, enhancing medical tourism through the ‘Heal in India’ initiative, and introducing visa reforms, India is strengthening its appeal as a world-class travel and healthcare hub. The inclusion of hotels in the harmonised scheme and visa waivers for select foreign tourists further reinforces a comprehensive, future-ready travel ecosystem.”

He added that with strategic policy alignment and private sector collaboration, the budget paves the way for India to become a more accessible, competitive, and thriving global destination.

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