Home » LEAD NEWS : TOURISM AS A KEY DRIVER FOR EMPLOYMENT AND GROWTH BUDGET 2025-26 FOCUSES ON INFRASTRUCTURE, MEDICAL TOURISM, AND HERITAGE CONSERVATION
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LEAD NEWS : TOURISM AS A KEY DRIVER FOR EMPLOYMENT AND GROWTH BUDGET 2025-26 FOCUSES ON INFRASTRUCTURE, MEDICAL TOURISM, AND HERITAGE CONSERVATION

TTT NEWS NETWORK
NEW DELHI, 4 FEBRUARY 2025:

India’s tourism sector, rich in heritage, culture, and diversity, is emerging as a global favorite and a key driver of economic growth. Recognizing its potential for employment-led development, the Union Budget 2025-26 has allocated ₹2541.06 crore to enhance infrastructure, skill development, and travel facilitation.

A major initiative includes developing 50 top tourist destinations in partnership with states through a challenge mode, ensuring world-class facilities and connectivity. With committed efforts, tourism is set to drive India’s progress toward becoming a developed nation by 2047.

Employment-Led Growth in Tourism:

The tourism sector’s contribution to GDP regained the pre-pandemic level of 5 per cent in FY23. The tourism sector created 7.6 crore jobs in FY23.  International tourist arrivals (ITAs) in India have rebounded to pre-pandemic level in 2023. The share of India’s ITAs in World ITAs stands at 1.45 per cent in 2023. Foreign exchange earnings through tourism were 28 billion USD. India received 1.8 per cent of world tourism receipts and attained a rank of 14th worldwide in world tourism receipts during 2023.

Measures to Facilitate Employment-Led Growth in the 2025-26 Budget:

1) Organizing intensive skill-development programmes for our youth including in Institutes of Hospitality Management

2) Providing MUDRA loans for homestays

3) Improving ease of travel and connectivity to tourist destinations

4) Providing performance-linked incentives to states for effective destination management including tourist amenities, cleanliness, and marketing efforts and

5) Introducing streamlined e-visa facilities along with visa-fee waivers for certain tourist groups.

Transforming Tourism Infrastructure: Enhancing Connectivity and Investment

Presenting the budget, Finance Minister Smt. Nirmala Sitharaman announced a landmark initiative to develop 50 top tourist destinations in partnership with states through a challenge mode. This initiative aims to elevate tourism infrastructure, improve ease of travel, and strengthen connectivity to key sites. As part of this framework, states will be required to provide land for critical infrastructure, including hotels, which will be classified under the Infrastructure Harmonized Master List (HML) to attract investments and boost hospitality services.

Furthering this commitment, 40 projects across 23 states will receive interest-free loans for 50 years, amounting to ₹3,295.8 crore under the Special Assistance to States for Capital Investment. This funding will support the creation of globally recognized tourist destinations by facilitating their development and strategic marketing. Additionally, the Swadesh Darshan Scheme 2.0 (SD 2.0), which focuses on sustainable and responsible tourism, will continue to expand, with 34 projects already approved under this initiative, receiving ₹793.2 crore in total funding. To strengthen employment opportunities in the tourism sector, Government has allocated ₹60 crore for skill development in the financial year 2025-26. This funding will support intensive skill-development programs for youth, including training in hospitality management and other tourism-related services.

Revitalizing Spiritual Tourism: A Focus on Heritage and Pilgrimage

Recognizing the deep cultural and spiritual significance of religious tourism, the government will prioritize the development of sites associated with pilgrimage and heritage. Special emphasis will be placed on destinations linked to the life and teachings of Lord Buddha, aligning with India’s vision to become a key center for Buddhist tourism.

The Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD) will continue to play a crucial role in enhancing infrastructure at major pilgrimage sites and heritage cities, ensuring world-class amenities and accessibility for visitors. By strengthening spiritual tourism, the government aims to position India as a global cultural hub while driving economic growth and employment generation in the sector.

Medical Tourism: Strengthening India’s Global Position Through “Heal in India”

Recognizing the immense potential of India’s healthcare sector, the Union Budget 2025-26 prioritizes medical tourism as a key growth driver. Finance Minister Smt. Nirmala Sitharaman announced that medical tourism and the “Heal in India” initiative will be promoted in partnership with the private sector, enhancing India’s position as a premier global healthcare destination. By leveraging world-class medical expertise, cutting-edge infrastructure, and traditional wellness systems like Ayurveda and Yoga, India aims to attract a larger share of international patients seeking high-quality, cost-effective treatment.

Growing Potential of Medical Value Travel (MVT)

India’s Medical Value Travel (MVT) sector is witnessing significant growth. The market, valued at $2.89 billion in 2020, is projected to reach $13.42 billion by 2026, driven by increasing foreign patient arrivals seeking high-quality and cost-effective treatment.

India’s key advantages in this sector include:

Specialties in Focus

The Indian Healthcare Ecosystem is delivering world-class medical care/treatment across the healthcare spectrum ranging from Modern Medicine, Ayurveda, Yoga, and other Traditional Systems of Healthcare. It provides tertiary-quaternary care, treatment for serious chronic and non-communicable diseases, comprehensive rehabilitation across all major medical specialties such as cardiac care, orthopedics, neurosciences, oncology, and promotive health-revitalization, functional health, and therapeutic wellbeing.

Medical Visa Introduction

Gyan Bharatam Mission

Finance Minister also said that documentation and conservation of our manuscript heritage with academic institutions, museums, libraries and private collectors will be undertaken to cover more than 1 crore manuscripts. She added that Government will set up a National Digital Repository of Indian knowledge systems for knowledge sharing.

Conclusion

The Government of India is committed to positioning the country as a global leader in tourism by enhancing infrastructure, boosting employment, and promoting diverse tourism segments, including spiritual, medical, and heritage tourism. The “Heal in India” initiative and Medical Value Travel sector underscore India’s growing prominence as a premier healthcare destination. Additionally, the Gyan Bharatam Mission aims to preserve and digitize India’s rich manuscript heritage, ensuring knowledge accessibility for future generations. With a strong emphasis on ‘Seva’ and ‘Atithi Devo Bhava,’ India is set to redefine its tourism landscape and establish itself as a world-class destination.

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