With Economy Slowing Down, Budget Focuses On Tourism To Boost Growth

Budget 2025: With the economic growth showing signs of a slowdown, Finance Minister Nirmala Sitharaman announced measures to boost the economy. The Economic Survey forecasts a growth rate of 6.3% to 6.8% for 2025-26, driven by a strong external account, measured fiscal consolidation, and steady private consumption. It emphasizes that domestic growth drivers will play a more crucial role than external factors in shaping India's economic trajectory in the coming years. 

Apart from the tax exemptions, the FM also announced measures to boost tourism to make it a catalyst for economic growth. FM Sitharaman said that tourism for employment-led growth will be in focus.

"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.
  
Detailing the measures to be taken for facilitating employment-led growth, Sitharaman said that intensive skill-development programmes for Indian youth including in Institutes of Hospitality Management will be organised.

The FM also announced MUDRA loans for homestays. Improving ease of travel and connectivity to tourist destinations; providing performance-linked incentives to states for effective destination management including tourist amenities, cleanliness, and marketing efforts; and introducing streamlined e-visa facilities along with visa-fee waivers for certain tourist groups were among the other measures announced by the FM.

"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. Medical Tourism and Heal in India will be promoted in partnership with the private sector along with capacity building and easier visa norms," said the FM.