Budget 2025-26: Visa reforms, homestay loans, & destination upgrades for tourism growth – ET TravelWorld

Union Finance Minister Nirmala Sitharaman, in her Union Budget 2025-26 speech, unveiled a series of strategic initiatives aimed at bolstering India’s travel and tourism industry through employment-led growth. These measures focus on destination development, skill enhancement, improved connectivity, and medical tourism, empahisisng on governemnt’s idea on how to make India a globally competitive tourism hub.

As part of the budget, the top 50 tourist sites across India will be developed in partnership with state governments through a challenge mode, ensuring competitive selection for funding and implementation. States will be required to provide land for infrastructure development, while hotels in these destinations will be classified under infrastructure HML (Harmonized Master List) to boost investment.

“The top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode. Land for building key infrastructure will have to be provided by states. Hotels in those destinations will be included in the infrastructure HML,” said Sitharaman.

The budget outlines five key measures to facilitate tourism-driven job creation:

1. Skill Development – Intensive training programs will be conducted for youth, particularly in Institutes of Hospitality Management, to enhance workforce capabilities in tourism and hospitality.

2. Financial Support for Homestays – MUDRA loans will be extended to homestay operators, empowering local entrepreneurs and encouraging community-driven tourism.

3. Enhanced Connectivity – Government initiatives will improve ease of travel to popular destinations through better transport infrastructure and streamlined logistics.

4. State-Level Incentives – Performance-linked incentives (PLI) will be offered to states for effective destination management, focusing on tourist amenities, cleanliness, and marketing efforts.

5. Simplified Visa Processes – A streamlined e-visa system will be introduced along with visa-fee waivers for select tourist groups to attract international visitors.

“To facilitate employment-led growth, we will organise intensive skill-development programs for our youth, provide MUDRA loans for homestays, improve ease of travel and connectivity to tourist destinations, and introduce streamlined e-visa facilities along with visa-fee waivers for certain tourist groups,” stated Sitharaman.

Spiritual tourism and heritage promotion
Building on the emphasis from the July 2024 Budget, the government will place a special focus on tourism destinations linked to Lord Buddha’s life and teachings. This initiative aims to enhance India’s appeal as a Buddhist pilgrimage hub, attracting both domestic and international tourists.

“Continuing with the emphasis on places of spiritual and religious significance in the July Budget, there will be a special focus on destinations related to the life and times of Lord Buddha,” Sitharaman announced.

Medical tourism and ‘Heal in India’ initiative
Recognising India’s potential in medical and wellness tourism, the government will collaborate with the private sector to promote medical tourism under the ‘Heal in India’ initiative. This will include capacity building in healthcare infrastructure and easier visa norms for foreign patients seeking treatment in India.

“Medical Tourism and Heal in India will be promoted in partnership with the private sector along with capacity building and easier visa norms,” she added.

Implications for the travel industry?
These budgetary measures are expected to drive investment, enhance service quality, and generate employment across India’s tourism ecosystem. With a strong focus on infrastructure, skill-building, and global positioning, the government aims to create a sustainable and competitive tourism industry that contributes significantly to economic growth.

The initiatives outlined in the Union Budget 2025-26 reaffirm the vital role of tourism in India’s economic development, offering new opportunities for travel and hospitality stakeholders while positioning the country as a world-class travel destination.