The government will develop 50 top tourist destinations in partnership with state governments to enhance India’s tourism appeal, Finance Minister Nirmala Sitharaman announced while presenting the Union Budget 2025-26. This initiative aims to attract both domestic and international tourists, fostering economic growth and employment. A special focus will be given to destinations linked to the life and times of Lord Buddha, further strengthening India’s cultural tourism.
To support small-scale tourism businesses, the government will extend Mudra loans to homestay owners, encouraging community participation in the hospitality sector. Additionally, hotels will be included in the harmonised scheme, allowing them easier access to infrastructure financing. Medical tourism will also receive a boost under the “Heal in India” initiative, in collaboration with the private sector, to promote India’s healthcare services globally.
The budget also introduced measures to facilitate inbound travel, including visa waivers for select foreign tourist groups and streamlined e-visa processes. Improved connectivity is a priority, with initiatives such as helipad development in remote areas and expansion of the UDAN scheme to link 120 additional destinations. These efforts aim to make travel within India more seamless and accessible.
Beyond tourism, the government announced financial support for the Western Kosi Canal project, benefiting 50,000 hectares in Bihar’s Mithilanchal region. This investment aligns with broader economic growth initiatives while ensuring regional development. With these comprehensive measures, Budget 2025 sets the stage for a significant boost to India’s tourism, hospitality, and travel industries.