The Tourism Industry of India began its grand celebration as India’s tourism sector get major boost when the Union Budget 2025 rolled in on Saturday, February 1st. The government of India plans to increase the tourism budget by 4%, bringing it to a whopping Rs 2,541.06 crores (293 million dollars!).
This excellent initiative aims to bring India to the forefront of the tourism market, showcasing its brilliantly carved attractions, rich heritage, breathtaking natural landscapes, and Blue Flag beaches, thereby increasing the GDP. The new union budget 2025-26 provides an excellent opportunity for India to shine, reclaiming its title as the Golden Bird of the world! Let’s look at the everlasting benefits for the tourism industry in India and how this will benefit us all.
Boosting Domestic Tourism Across 50 Destinations

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As per the announcements made by FM Nirmala Sitharaman, the government is working towards sustainable infrastructural development. This development entails a massive increase in the funding to upgrade exciting tourism spots at 2 and 3-tier cities, including Kochi, Jamshedpur, etc! The government will also develop attractions across 50 locations, selected based on a competitive process to ensure equally impactful results. You can expect the quality of services at the attractions to be top-notch, as every state will receive performance-linked incentives. Hotels at these locations will be open to investors, registered under the Harmonized Master scheme, and states will provide enough land for this development.
Increasing tourism spots is also bound to boost employment in India, hence giving leeway for institutions to introduce intensive skill-building Hospitality programs. Employment in Tourism gets Rs.20,000 crore boost since 2024. Do you want to explore the new and developing India soon? Book personalized and customized holiday tour packages for the adventure of a lifetime!
Visa Reforms to Attract International Visitors

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One of the best ways to grow the tourism sector of India is to lure in international travellers. Hence, one of the key developments for India’s Travel & Tourism Industry is the new e-visa system to attract thousands this year! Visa requirements will be reduced and certain international countries will also receive waivers on travel to India.
The FTA level in India is expected to increase by 5% with the Union Budget 2025, compared to previous years. Want to explore more this year? Apply for online visa services for 180+ countries and get going today!
The Future of Homestays

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To ensure small businesses thrive in the quickly developing scene, expected as per the Indian Union Budget, new entrepreneurs will receive MUDRA loans. This will also increase the number of affordable accommodation spaces in even the remotest of locations, boosting growth in the hospitality sector. Planning to travel to India in 2025? Click here to find luxury hotel bookings at lowest prices!
Want to know more about the expansion of hotels as per the Union Budget 2025? Read: The Impact of Budget 2025 on Luxury Hotels & High-End Travel.
Rapid Transportation Development

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With the upgrading infrastructure and homestays, the government plans to develop local transportation facilities at popular hotspot areas. They will expand road, railway, and airway connectivity to decrease travel time and increase experience quality. As per India’s Union Budget FY 2025-26, five national skiing centres will open to increase sustainable travel infrastructure and technology building. India will change rapidly in 2025, so you must get all-inclusive India tour packages to explore the new Bharat!
Click here to get cheap flight bookings! Also, read: What the Union Budget 2025 Could Mean for Airlines and the Future of Air Travel to know if you’ll have to deal with higher prices in the future.
The Heal in India Initiative for Medical Tourism

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Come to India to Heal, will be the new mantra for 2025, with easily available visa services for medical tourists. The government aims to partner with the private sector as per the Union Budget 2025 to invest in better healthcare services and infrastructure to bring India’s medical expertise to the spotlight.
India’s New Title as the Spiritual Haven

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India will now be promoted as the Land of Lord Ram and Lord Buddha, which is bound to drive the spiritual tourist crowd to the country. As per the Union Budget 2025, India will highlight Buddhist and Hindu religious sites; therefore, drawing attention to it as a spiritual hub.
What do you think about the new Union budget 2025: tourism highlights & updates? Do you think these tourism-focused measured will make India a global sensation soon? We agree it should be, as India is a treasure of hidden gems, from its captivating monuments to the lively local crowds. Share your thoughts about the Budget 2025 highlights in the comments below!
FAQs- Union Budget 2025 Impact on Indian Tourism
What is the impact on Indian tourism?
Indian tourism statistics are expected to double with the Union Budget with the introduction of e-visa and visa fee waivers for certain countries and medical tourists. There is also expected to be an expansion in homestays and hotels with an increase in attractions across 50 locations.
Which sector will boom in 2025 in India?
The tourism and hospitality sector will boom in 2025 in India after the announcement of the Budget.
What is the main impact on travel and tourism industry seen after Incredible India campaign?
A significant rise of about 16% in tourist numbers had been observed in India after a year of the Incredible India campaign since 2002.
What are the impacts of tourism?
Tourism is a great way to increase cultural awareness, visit new attractions, and also work towards growing the country’s economy and infrastructure. It can also have negative impacts like increase in crowding and environmental problems.
What are the factors affecting the advancement of tourism in India?
Several factors including security, condition of the attractions, and transportation availability affect the advancement of tourism in India. However, this is expected to change after the Union Budget 2025 announcement.
What is the Budget of tourism in India?
The Budget for tourism in India as of 2025 is INR 2,541.06 crore.
What is a major problem of India’s travel and tourism industry?
Some of the major problems of India’s travel and tourism industry that will be rectified as of 2025 include lack of stable infrastructure, transportation issues, and security.
How will India’s Union Budget 2025 Boosts Tourism Growth?
The union budget plans to waive visa fees and introduce e-visas, making it easier to access for all tourists hence boosting tourism. There will also be a widespread development in infrastructure of attractions, transportation, and hotel and homestay investing. India will also be more accessible for medical tourism and become a spiritual hub.
What is the current scenario of tourism and travel industry in India?
India’s tourism industry is currently expanding at a rapid speed and is expected to further grow under the new union budget.
What is the budget allocation for tourism in India?
The 2025 budget allocated for tourism in India is INR 2,541.06 crores.
Who introduced the union budget in India?
R K Shanmukham Chetty was the first to introduce the union budget in independent India. James Wilson was the first to introduce the system to India.
Also read:
- Fancy the Luxury? Explore Top 20 Expensive Hotel Rooms in the World
- Unveiling the Tips to Find and Book Affordable Flights
- Visa-Free Countries for Indians: Why do Indians Get Access to Travel Visa-Free?
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