In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman emphasized tourism as a pivotal sector for employment-led growth, allocating ₹20,000 crore to enhance infrastructure and connectivity across India’s top 50 tourist destinations.

These sites will be developed in collaboration with state governments through a “challenge mode” approach, encouraging states to actively participate in the development process.

The budget outlines several key initiatives to bolster the tourism sector:

1. Homestay Promotion: To encourage local entrepreneurship, the government will extend MUDRA loans to support homestay establishments, providing travelers with authentic experiences while generating income for local communities.
2. Enhanced Connectivity: Improving access to tourist spots is a priority. The budget proposes the expansion of the UDAN Regional Connectivity Scheme to 120 new destinations, aiming to facilitate affordable air travel for an additional 4 crore passengers over the next decade. This includes support for helipads and smaller airports in hilly, aspirational, and northeastern regions.
3. Performance-Linked Incentives: States demonstrating effective destination management—encompassing tourist amenities, cleanliness, and marketing efforts—will be rewarded with performance-linked incentives, fostering healthy competition and ensuring high standards across tourist destinations.
4. E-Visa Enhancements: To attract international tourists, the government plans to streamline e-visa facilities and offer visa fee waivers for select tourist groups, simplifying the travel process and making India a more appealing destination.

A significant portion of the tourism budget is dedicated to infrastructure development. The Ministry of Tourism has been allocated ₹2,541.06 crore for 2025-26, a substantial increase from the previous year’s revised estimate of ₹850.36 crore.

This funding will support the Integrated Development of Tourism Circuits under the Swadesh Darshan scheme, focusing on creating theme-based tourist circuits that are high-value, competitive, and sustainable.

Additionally, the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme will receive substantial funding to develop pilgrimage and heritage sites, enriching spiritual and cultural tourism experiences.

There will be a special focus on destinations related to the life and times of Lord Buddha, aiming to attract tourists interested in spiritual tourism.

To address the growing demand for skilled manpower in the tourism sector, ₹60 crore has been allocated for training and skill development programs.

Initiatives like the “Hunar Se Rozgar Tak” program aim to train youth, particularly from underprivileged backgrounds, to meet the sector’s needs.

The ministry is also focusing on certifying the skills of service providers and promoting entrepreneurship in the tourism industry.

Furthermore, the government will promote medical tourism under the ‘Heal in India’ initiative, in partnership with the private sector.

This includes capacity building and easier visa norms to attract international patients seeking medical treatment in India.

Prime Minister Narendra Modi lauded the budget’s focus on tourism, stating that including hotels at 50 tourist destinations under the infrastructure category will significantly boost tourism and provide new energy to the hospitality sector, which is a major employment generator.

In summary, the Union Budget 2025-26 outlines a comprehensive strategy to develop India’s tourism sector through substantial investments in infrastructure, skill development, and policy reforms, with a collaborative approach involving both central and state governments.

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