India is first in the world for international tourism spending, with $178 billion going towards the country’s GDP. The importance of the tourist industry in generating employment, encouraging investment, and opening up economic prospects is emphasised in the Union Budget 2024–2025. The government would boost Odisha’s scenic beauty, temples, monuments, handicrafts, animal sanctuaries, natural landscapes, and immaculate beaches in addition to supporting Nalanda’s growth as a tourism hub. The budget increases the amount allotted for the construction of tourism infrastructure to Rs 2,080 crore from the revised amount of Rs 1,294 crore for 2023–2024. It is anticipated that more sector-related initiatives will be launched.

Budget Highlights

• Nirmala Sitharaman, India’s Finance Minister, has suggested encouraging the Vishnupad Temple and Mahabodhi Temple corridors to develop into renowned pilgrimage and tourism hotspots.
• She also intends to revitalise Nalanda University and launch a comprehensive development effort for Rajgir. The Consulting CEO of FAITH, Aashish Gupta, recommended actions including boosting the budget for marketing and PR, supporting hospitality with infrastructure status, doing away with TCS on travel, and lowering the GST rates on tourism-related travel and lodging.
• Following the pandemic, India’s tourism industry saw tremendous expansion, with over 92 lakh international visitors in 2023—a 43.5 per cent YoY rise.
• The ‘Swadesh Darshan scheme, the ‘Travel for Life ‘initiative, the PRASHAD Scheme, and the ‘Amrit Dharohar’ scheme are just a few of the tourism-related initiatives the government is focussing on establishing, along with at least 50 more places.
• The goal of the government’s initiatives is to boost employment and the travel and tourist industry.

Major Changes and Challenges

• ‚Çπ2,450 crores, or 44.7% more than previously planned, have been set up for travel and tourism in India’s Union Budget 2024–25. By boosting investment in infrastructure development, lowering the cost of aviation turbine fuel (ATF), and facilitating inexpensive air travel through the “UDAN” initiative, the government hopes to increase the appeal of India to both local and foreign tourists.
• To facilitate international visitors’ visits to India, the budget also attempts to streamline the visa application procedure. This may result in an increase in tourists and revenue for the travel and tourism sector.
• It is anticipated that the budget adjustments will increase tourism-related employment opportunities, draw more tourists, and strengthen regional economies throughout India. The government wants tourists from all around the world to consider India a must-visit location.

Experts’ Opinion on Tourism Budget

• The Indian budget for 2024 intends to boost domestic travel by enhancing connectivity and infrastructure, to revive the logistics and freight industry.
• This is consistent with Aeroprime Group’s mission to push innovation and growth in the logistics and aviation sectors. Executive Director of Kamat Hotels India Limited, Vishal Kamat, commended the budget’s employment-oriented strategy, which bridges the skills gap between businesses and employees and addresses workforce demands.
• Director of Pacific Hospitality Shreya Anand forecasted growth and new prospects for the industry, praising the government’s emphasis on infrastructure development and tourism. Adaptability and strategic agility are essential for managing the budget.

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Conclusion

The goal of India’s Union Budget 2024–2025 is to expand the travel, tourist, and hospitality industries to create jobs, attract investment, and expand economic opportunities. The budget contains programs to boost tourism in Odisha, Nalanda, and other areas, and it raises the development of tourism infrastructure to Rs 2,080 crore. Additionally, by improving infrastructure and connectivity and revitalising the logistics and freight sectors, the budget seeks to increase domestic travel.