New Delhi: The government has laid out a plan in the Union Budget 2025 to make tourism a key sector for employment-led growth in India. Finance Minister Nirmala Sitharaman Saturday announced a plan to develop 50 tourist destinations in India to generate employment, attract investment, improve infrastructure, and expand India’s tourism capability.
In her speech to Parliament, Sitharaman said the development of these 50 tourist destination sites will take place in partnership with the states, adding that states will provide the land to develop the infrastructure, such as hotels.
The finance minister, further said, a streamlined e-visa process will be introduced with visa fees being waived for certain tourist groups. It was not immediately clear who this would apply to.
Sitharaman also announced the launch of a new ‘Heal in India’ initiative.
Under it, India will be promoted as a destination for medical tourism in collaboration with the private sector and visa norms will be eased for international patients looking to travel to India for medical procedures.
“The government will also give special focus to destinations related to the life and times of Lord Buddha,” said Sitharaman, building on the emphasis placed on spiritual and religious destinations in the interim Budget in July 2024.
Employment-led growth
Sitharaman outlined five measures to facilitate employment-led growth in the tourism sector in India.
The top priority, the finance minister said, was organising skill development programmes for the youth to enter the hospitality and tourism industry. The programmes will be included in the curricula of educational institutes, such as the Institute of Hospitality Management (IHM, Pusa) under the Ministry of Tourism.
Additionally, the government will extend MUDRA loans to homestays to encourage their development. The Union government’s Pradhan Mantri MUDRA Yojana (PMMY) allows for loans up to Rs. 20 lakhs for non-farm income-generating activities.
Improving connectivity and ease of travel to tourist destinations is also a priority, alongside providing “performance-linked incentives” to the states for effective destination management, which includes providing more amenities, ensuring cleanliness, and concerted efforts towards marketing tourist destinations.
Emphasis on medical tourism
The emphasis on medical tourism is one of the more significant announcements made in the Budget this year. It will take place in tandem with an expansion of seats in medical colleges and cancer centres in all district hospitals.
India has steadily been gaining popularity as a destination for medical tourism, and this year’s Budget identifies it as a sector for public-private partnerships. The ‘Heal in India’ initiative is meant to drive further growth for this sector.
In 2022, while speaking at Dr MGR Medical University in Tamil Nadu, Sitharaman talked about the potential of medical tourism in India as it emerges as a hub on the global healthcare map. She said that India stands at No.10 in the Global Medical Tourism Index, estimated to be around $9 billion in 2022.
“Approximately two million patients visit India each year from 78 countries for medical, wellness, and IVF treatments,” she said in 2022.
(Edited by Sanya Mathur)
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