The Indian government has unveiled plans to develop 50 major tourist destinations in partnership with state governments, Finance Minister Nirmala Sitharaman announced during the Union Budget 2025-26 presentation on Saturday. This initiative aims to boost the tourism sector by enhancing infrastructure, improving accessibility, and upgrading facilities at key locations across the country.
To further support small-scale tourism enterprises, the government will extend Mudra loans to homestays, enabling individuals to offer lodging services to both domestic and international visitors.
Additionally, Sitharaman emphasized the role of the private sector in promoting medical tourism, recognizing India’s growing reputation as a hub for high-quality yet affordable healthcare. The government aims to strengthen this sector, positioning it as a significant contributor to the nation’s tourism-driven economy.
Calling it a ‘major initiative’, Pradeep Shetty, spokesperson, Hotel and Restaurant Association of Western India- HRAWI & Vice President, Federation of Hotel and Restaurant Associations of India (FHRAI), noted, “This collaboration will not only improve infrastructure but also help spread tourism across the country, attracting more visitors and benefiting local communities. Additionally, the inclusion of hotels in these destinations in the harmonious master list is a significant move.”
Shetty added, “This aligns with our long-standing request for granting of Infrastructure status to the hospitality industry. This will facilitate access to cheaper, long-term financing, enabling hotels in these newly developed destinations to upgrade their facilities and offer world-class services, further boosting the sector.”
Devndra Chawla, CEO & MD, GreenCell Mobility, remarked, “The government’s focus on connectivity and tourism infrastructure, along with income tax relief, will boost economic activity by increasing disposable income for the middle class. These initiatives will encourage more people to explore new destinations while choosing sustainable and eco-friendly transportation options like our NueGo service.”
The development of 50 key destinations under challenge mode, along with streamlined e-visas and visa-free access for select tourist groups, will drive international footfall and enhance India’s global appeal.
“The Union Budget’s strategic emphasis on tourism is a welcome move that will significantly boost India’s hospitality industry. The government’s initiative to include new hotels coming up in 50 key destinations in the infrastructure harmonized list (HML) for projects where land will be provided by the state governments is a welcome step. This will help hospitality investors to avail infrastructure lending at easier terms with enhanced limits and offer access to larger amounts of funds as External Commercial Borrowings (ECBs),” elaborated Mr. Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts.
The government’s plan to introduce a modified UDAN scheme for strengthening connectivity to an additional 120 destinations and supporting helipad development in the northeastern region will help to connect potential tourist destinations in the region.
