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New Delhi: As the finance minister Nirmala Sitharaman announced the interim budget for 2024-25 Thursday, she said that the government will invest significantly in the tourism sector in India this year, stating that the island Union territory of Lakshadweep will remain the government’s focus to make it a tourism hub.
The Union Budget 2024 will have a “heavy focus on domestic tourism”, Sitharaman said, adding that the states will be encouraged to invest in developmental projects to create tourist centres and promote them at the global level.
The tourism sector was allocated Rs 2,446.62 crore for 2024-25, up from Rs 2,400 crore allotted in 2023-24.
Noting that the states will be provided with interest-free loans to boost tourism within their borders, Sitharaman said that the initiative will create job prospects for people.
“To address fervour for domestic tourism, projects for port connectivity, tourism infra, and amenities will be taken on our islands, including Lakshadweep. This will help in generating employment also,” Sitharaman said in her 57-minute Budget speech.
The FM announced that a rating system will be created, based on the quality of facilities provided by the states. Moreover, projects for port connectivity, tourism infrastructure, and amenities will be taken up on India’s islands, including Lakshadweep.
She said this amid the ongoing political row with Maldives over the derogatory remarks passed by some Maldivian ministers, now suspended, against Prime Minister Narendra Modi.
“Our economic strength has made the country an attractive destination for business and conference tourism. Our middle class also now aspires to travel and explore. Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship,” she added.
Sitharaman highlighted that India’s robust economic standing has led to an increase in business and conference tourism. “The success of organising G20 summit meets at 60 places presented the diversity of India to a global audience,” she added.
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‘Maximising potential’
In a statement shared with ThePrint, Chirag Agrawal, co-founder of TravClan, a tour and travel platform said, “Tourism cannot grow without investment. We welcome the government’s initiatives on developing iconic tourist centres and investing in tourism and connectivity infrastructure.”
He said that measures such as long-term loans to states will foster long-term development and unlock India’s tourism potential.
“We hope for more measures from the government that continue to build our air infrastructure and hospitality sector. This development will not just invite the world to explore our heritage but also ignite local economies and our pride!” he noted.
Acknowledging the government’s initiative towards tourism, Rajesh Magow, co-founder and Group CEO of MakeMyTrip, said that the ongoing emphasis on tourism-led destinations, particularly in the realm of island and spiritual tourism, reflects a strategic vision for the long-term growth of the travel and tourism sector and will take domestic discovery to farther reaches of the country.
It will also empower local entrepreneurs and create employment opportunities, he added.
“While the specifics are yet to be seen, collaboration between the industry and the government is key to maximising impact, ensuring quality standards, and fostering sustainable tourism models for an enhanced traveller experience,” Magow told ThePrint.
K.B. Kachru, chairman emeritus and principal advisor of Radisson Hotel Group, South Asia, said that the government’s focus on domestic tourism in the interim budget 2024-25 is encouraging.
“The projects to enhance connectivity in the country through the development of airports, railways metro lines, ports in our unexplored island, including Lakshadweep, and tourism infrastructure, will enhance demand and generate employment,” he said. “It’s an investment in India’s potential.”
(Edited by Richa Mishra)
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