-Addressing the industry stakeholders and the panellists during a post-budget webinar, Tourism Minister Gajendra Singh Shekhawat said that the ministry is present in a ‘listening mode’ to understand their experiences and expectations for shaping a better future of tourism.
-Notably, the Ministry of Tourism, Government of India, organised a high-level Post-Budget Webinar in virtual mode including the other key ministries attending the same. The webinar brought together key stakeholders from across India’s tourism and hospitality industry and featured discussions spearheaded by AS Tourism, Suman Billa.
Prime Minister Narendra Modi today addressed the post-budget webinar via video conferencing, emphasising the significance of the theme “Investing in People, Economy, and Innovation” as a roadmap for Viksit Bharat. He highlighted how this year’s budget aligns with this vision, prioritising investments across key sectors, including tourism, which he identified as one of the major economic drivers.
Discussing tourism’s potential within the broader economic framework, Modi underscored that the sector could contribute up to 10% of India’s GDP while generating employment opportunities for millions of youths. “We will develop 50 destinations with a strong focus on tourism infrastructure. Granting hotel infrastructure status to these destinations will enhance the ease of travel and create local employment opportunities. We have also expanded the MUDRA scheme for homestays. Under the ‘Heal in India’ and ‘Land of the Buddha’ initiatives, we are attracting tourists from across the world. Our goal is to establish India as a global hub for tourism and wellness.”
Beyond traditional sectors like hospitality and transportation, Modi urged stakeholders to tap into health tourism, leveraging India’s strengths in medical and wellness tourism. He emphasised the global appeal of yoga and Ayurveda, while also pointing out the vast potential of education tourism as a growing sector. “There is also tremendous scope in education tourism. I encourage discussions on this, leading to a strong roadmap for further development,” he said.
Citing the IMF report on the growth of on India’s economy, Modi noted that between 2015 and 2025, there has been a growth of 66%, reaching $3.8 trillion—outpacing several major economies. He reiterated that India is on the path to becoming a $5 trillion economy, stressing the need for strategic investments and effective implementation of budgetary policies to sustain this momentum. He recognised the role of industry stakeholders in achieving this vision, emphasising the transformative potential of tourism in shaping India’s economic future.
Investment in hospitality & tourism should be viewed as investment in infrastructure
Further acknowledging the correlation between tourism and economic growth, Gajendra Singh Shekhawat, Union Tourism & Culture Minister shared that with the rapid development of infrastructure, tourism is being fuelled like never before. “The Prime Minister has set ambitious goals—doubling tourism’s contribution to GDP from the current 5.04% to 10% in the next decade and creating 25 million jobs in the next five years,” the minister stated.
To achieve these milestones, strategic destination planning and execution will be critical. The minister acknowledged that while the framework is in place, the real challenge lies in execution.
Speaking on one of the key takeaways from the Prime Minister’s address, Shekhawat also threw light on the recognition of hospitality and tourism as integral components of national infrastructure as their respective capital is so high. “Investment in hospitality and tourism should be viewed as investment in infrastructure. Once it is included in the infrastructure master list, it brings long-term financial benefits including the increase of payback period,” he remarked.
He said that traditionally, banks have hesitated to provide long-term funding for tourism projects, limiting financing options to short-term loans of 6-7 years. However, with the new infrastructure classification, the payback period could extend to 15-20 years, reducing interest rates and attracting more investors. The minister also highlighted the potential of leveraging external commercial borrowing and tapping into financial institutions like LIC and the India Infrastructure Financial Corporation for long-term investment in the sector.
Additionally, the government’s existing policy framework allows for automatic infrastructure status for three-star and above tourism projects in areas with a population of less than one million, making expansion across India a viable opportunity.
With India’s immense cultural and geographical diversity and a direct correlation between tourism and economic growth, the minister believes the country is well-positioned to scale new heights in tourism. He further added, “Prime Minister has also highlighted various segments such as health tourism, wellness tourism, adventure and sports tourism, event tourism, and the booming wedding tourism being amplified through current campaigns- all these can be leveraged to their maximum potential. Further, festivals like Nagaland’s Hornbill Festival, which have matured into globally recognised events, need to be further leveraged to attract international tourists.”
Shekhawat was addressing the industry stakeholders and the panellists during a webinar, where he reiterated that the ministry is present in a ‘listening mode’ to understand their experiences and expectations for shaping a better future of tourism.
“With the opportunities presented in this budget, the question is to how can we leverage them to propel the tourism sector forward, making it more dynamic and vibrant? India has the potential to position tourism as a major economic driver—how do we enhance its productivity and align it with the Prime Minister’s vision of contributing 10% to the GDP? Your guidance will be invaluable in realising this vision,” he said.
Notably, the Ministry of Tourism, Government of India, organised a high-level Post-Budget Webinar in virtual mode including the other key ministries attending the same. Led by the office of the Secretary, Ministry of Tourism, V. Vidyavathi, and with discussions spearheaded by Additional Secretary, Tourism, Suman Billa, this webinar brought together key stakeholders from across India’s tourism and hospitality industry to discuss and strategise the effective implementation of the Union Budget 2025-26 announcements.