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Union Budget 2025: What Tourism Sector Received?

Written by: Sachin GuptaUpdated on: Feb 7, 2025, 11:48 AM IST
The government has allocated ₹2,541.06 crore to enhance infrastructure, skill development, and travel facilitation within the tourism sector.
Union Budget 2025: What Tourism Sector Received?
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India’s tourism sector, with its rich heritage, culture, and diversity, is emerging as a global favorite. The sector plays a crucial role in driving economic growth, and the government has recognized its potential for generating employment and development. India achieved a rank of 14th worldwide in global tourism receipts, receiving 1.8% of world tourism receipts in 2023, highlighting its growing significance in the global tourism market.

Budget 2025-26 Allocation to Boost Tourism

In the Union Budget 2025-26, the government has allocated ₹2,541.06 crore to enhance infrastructure, skill development, and travel facilitation within the tourism sector. This includes initiatives aimed at upgrading facilities and ensuring smooth travel experiences.

A significant initiative in the budget is the development of 50 top tourist destinations in collaboration with state governments through a challenge mode. The goal is to provide world-class facilities and improve connectivity to these sites, making them attractive for both domestic and international tourists.

Landmark Initiative for Infrastructure Development

Finance Minister Smt. Nirmala Sitharaman introduced a landmark initiative to enhance the tourism infrastructure by developing 50 key tourist destinations in partnership with states. The states will provide land for critical infrastructure, including hotels, which will be categorized under the Infrastructure Harmonized Master List (HML) to attract investments.

The government will provide ₹3,295.8 crore in interest-free loans for 40 tourism projects across 23 states under the Special Assistance to States for Capital Investment. These funds will facilitate the creation of globally recognized tourist destinations through development and strategic marketing.

Swadesh Darshan Scheme 2.0 and Skill Development

The Swadesh Darshan Scheme 2.0 will continue expanding, focusing on sustainable tourism. The scheme has already approved 34 projects with a total funding of ₹793.2 crore. Additionally, ₹60 crore has been allocated for skill development in the tourism sector, specifically targeting hospitality management and related services.

Conclusion

India’s government is committed to positioning the country as a global leader in tourism. This involves enhancing infrastructure, creating employment opportunities, and promoting diverse tourism segments, including spiritual, medical, and heritage tourism. Initiatives like “Heal in India” and the Gyan Bharatam Mission, which preserves India’s manuscript heritage, further strengthen this vision. With a focus on ‘Seva’ and ‘Atithi Devo Bhava,’ India aims to redefine its tourism landscape and establish itself as a world-class destination.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Feb 7, 2025, 11:48 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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