As the Union Budget 2025-26 was unveiled, it became evident that India’s travel and tourism sector is at the heart of the government’s vision for economic growth. From enhanced infrastructure to financial incentives, the budget aims to redefine the industry’s trajectory, positioning India as a global tourism powerhouse. Industry leaders from across the sector came forward, voicing their perspectives and hopes for the transformative measures introduced.

A Call for Market Competitiveness and Operational Ease

For Hussain Patel, Director of TripJack, the budget signals a vital shift towards improving efficiency in the industry. “The travel and tourism industry anticipates that the Union Budget will address key challenges and foster sustained growth,” he remarked. His emphasis was on rationalizing GST rates, introducing input tax credits, and simplifying compliance processes. “Emphasizing digitization and targeted skill development programs can empower travel agents to adapt to emerging industry trends,” he added, highlighting the importance of making domestic and inbound tourism more accessible through awareness campaigns and eco-friendly initiatives.

A Boon for Startups and Entrepreneurial Expansion

Innovation and inclusivity stood at the forefront for Amar Nagaram, Founder and CEO of Virgio. “For D2C start-ups, we hope for initiatives that enhance access to affordable logistics, robust digital infrastructure, and streamlined cross-border trade,” he said with optimism. His vision for Indian startups aligns with the budget’s focus on expanding tax incentives and simplifying compliance frameworks. “Encouraging collaborations between MSMEs and larger corporations can further catalyze long-term economic growth,” he explained, reinforcing the critical role of entrepreneurship in shaping India’s future.

Connectivity and Infrastructure: Transforming India’s Travel Landscape

Dr. Sanjay Sethi, Managing Director & Chief Executive Officer of Chalet Hotels Limited, called the government’s focus on connectivity a game-changer. “Visa-free access for specific foreign groups, simplified e-visa procedures, and the expansion of the UDAN scheme to 120 new destinations will greatly improve connectivity and ease of travel,” he noted.

Echoing this sentiment, Navneet Nagpal, Principal Consultant and Director at Spectra Hospitality Services, recognized the potential of the UDAN scheme. “This expansion will significantly enhance regional connectivity and unlock tourism potential,” he stated. With increased investments in hospitality training programs, India’s talent pipeline is expected to strengthen, ensuring a skilled workforce for the industry’s future.

Tax Incentives Driving Domestic Tourism

Anand Vardarajan, Chief Business Officer at Tata Asset Management, welcomed the tax exemptions. “The increase in the tax exemption limit up to Rs. 12 lacs puts more money in people’s hands. This may find its way into travel and investments,” he suggested, highlighting the possible boost in discretionary spending. Similarly, Rajesh Ghanshani, Director of Partnerships at STAAH, saw the government’s focus on infrastructure status for hotels as a catalyst for industry expansion. “Providing infrastructure status to hotels will ease access to financial resources and enable much-needed development,” he emphasized.

Elevating India’s Global Appeal

Shikhar Aggarwal, JMD of BLS International, called the budget a visionary leap. “The development of 50 iconic tourist sites will enhance India’s appeal as a global travel destination,” he said, stressing the importance of initiatives like streamlined visa processes, MUDRA loans for homestays, and a special focus on Buddhist circuits and spiritual tourism.

Lucas Ramos, Senior Director at RCI, praised the government’s commitment to strengthening the tourism sector. “The focus on medical tourism through the ‘Heal in India’ initiative and visa reforms reinforce India’s position as a world-class travel and healthcare hub,” he added.

Regional and Religious Tourism on the Rise

Religious tourism is poised for substantial growth, with Aditya Sanghi, CEO of Hotelogix, predicting a significant boost. “Enhancing tourism across 50 destinations linked to Lord Buddha’s journey will spur the development of new hotels and infrastructure,” he noted.

Dharamveer Singh Chouhan, Co-founder & CEO of Zostel, highlighted the positive impact of regional tourism initiatives. “With improved connectivity and infrastructure, India’s hidden gems will become more accessible to both domestic and international travelers,” he said.

Tourism as an Engine of Economic Growth

For Jatinder Paul Singh, CEO and Co-founder of Viacation, the budget sets a promising tone for adventure tourism. “The focus on enhancing tourism infrastructure and improving connectivity provides a strong outlook for experiential travel in India,” he stated.

Arun Bagaria, Co-Founder & CEO of TravClan, saw great potential in the government’s plans. “Developing 50 tourist destinations, enhancing e-visa facilities, and introducing visa fee waivers are significant steps that will foster a more vibrant and inclusive tourism ecosystem,” he said.

A Future-Ready Approach to Tourism

The Union Budget 2025-26 has laid the foundation for a robust and sustainable tourism ecosystem. With a focus on infrastructure development, tax incentives, ease of doing business, and technological advancement, the budget is poised to drive growth, create employment, and position India as a premier global travel destination. Industry leaders remain optimistic, recognizing the potential for collaborative efforts between the public and private sectors to shape the future of Indian tourism.