The travel, tourism and hospitality industries are eagerly waiting for Union Budget 2025, which will introduce transformative policies set to stimulate investment sectors while promoting sustainable growth. The travel sector shows promise to grow on a global scale because India has emerged as a favored destination for tourists from around the world and industry stakeholders expect tax changes together with infrastructure investments as well as strategic management strategies to achieve maximum sector growth.
The budget will be presented on 1 February 2025.
The field specialists share their expectations before the upcoming announcement as follows:
1. The support toward infrastructural development creates positive impacts for tourism sector growth.
Amrita Gupta from Manglam Group emphasizes that improving infrastructure is a key factor in shaping India’s tourism industry. Through the Swadesh Darshan Scheme, which distributed ₹5,287.90 crore for 76 projects, India has achieved advanced facilities in tourism infrastructure that result in sustainable world-class destinations. Gupta promotes sector status for travel and hospitality to help attract funding that would enable sustainable growth and welcome more international tourists visiting India.
Rising property and construction expenditures might obstruct future development of tourism sites at present. According to Gupta, the real estate industry will benefit from increased tax exemption thresholds up to ₹5 lakh that help both homeowners and developers reduce costs, thus driving down property prices to attract more tourists.
2. Empowering Women: A Key to Economic Growth
Dr. Payal Kanodia from YFLO Delhi asks government representatives to put women’s empowerment at the forefront of economic development for Budget 2025.
While women form nearly half of India’s population, only 18% of women contribute to India’s GDP. Kanodia also points out that by developing women-based enterprises and increasing the women’s access to financial resources, the government can facilitate women in playing a bigger role in developing innovation, entrepreneurship and also economic growth.
India’s women labor force participation is only 41.7%, below the global average, and Kanodia notes that too. Such a rise could be in India’s GDP if the country invests in skill development programs, offers greater access to financial resources, and removes barriers to women’s workforce participation. Among many other ways, the upcoming budget can help women step into leadership roles and get involved in helping create a more inclusive economy.
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3. Simplified GST Rates: A Step Toward Boosting Domestic and Inbound Tourism
JMD of Sincere Developers, Paritosh Ladhani believes that tax reforms in Budget 2025 would be a huge aid to the hospitality industry. One of the key aspects, if the 18 percent GST filings are merged with the 12 percent rate of hotels, should allow domestic as well as inbound tourism to be more appealing.
Ladhani also emphasizes that hospitality is an industry, which must be recognized as such, and that this will expose hospitality to access to finance and development in tier II and III cities. But this would not only yield new tourism hotspots but will also create employment opportunities in such cities that are often sidestepped. Experts feel that some of the measures in this budget plan can help India realize its $3 trillion tourism GDP target of 2047.
4. A Collaborative Approach for Growth and Sustainability
Experts across the industry agree that government support is key to unlocking the full potential of tourism and related sectors. From recognizing hospitality as a sector to simplifying GST rates, there is a growing call for more strategic measures that can support women-led businesses and ensure sustainable development. Experts believe that through well-thought-out policies, India can position itself as a global tourism powerhouse while creating a more inclusive, economically robust future for all its citizens.
Stay tuned for the budget announcement and its impact on India’s travel, tourism, and hospitality industries!
