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Union Budget 2025-26: Tourism to Drive Employment-Led Growth with Key Reforms and Initiatives

New Delhi: In a significant push for employment-led growth, the Union Budget 2025-26 has identified tourism as a key sector to stimulate job creation and economic development across India. Union Finance Minister Nirmala Sitharaman, presenting the Budget in Parliament today, outlined several initiatives aimed at boosting the tourism industry while simultaneously creating employment opportunities, especially for the youth.

Tourism: A Key Driver of Employment and Growth

Sitharaman emphasized that tourism is not just a contributor to the economy but also a major source of employment, particularly in sectors such as hospitality, travel services, and guides. To enhance this potential, the government has proposed a series of measures focused on skill development, infrastructure, and ease of travel.

Among the key initiatives, the government will organize intensive skill-development programmes aimed at youth, particularly in hospitality management. These programmes will focus on training and providing skills that align with the global tourism industry, opening up numerous job opportunities. Additionally, MUDRA loans will be made available for establishing homestays, which will further contribute to employment creation in rural and semi-urban areas.

Improved Infrastructure and Connectivity

The Finance Minister also emphasized the need to improve tourism infrastructure and connectivity to tourist destinations across the country. To achieve this, the government plans to focus on developing the top 50 tourist destinations in India in collaboration with state governments through a challenge mode. These destinations will be modernized with better infrastructure, including hotels, amenities, and transportation networks.

In addition, land for infrastructure development, particularly hotels, will be provided by the respective states. These hotels will be included in the Infrastructure Harmonized Master List (HML), ensuring streamlined approvals and support. This approach will make it easier for private investors to develop and expand tourism infrastructure in key regions.

Focus on Spiritual and Religious Tourism

Recognizing the significance of India’s spiritual and cultural heritage, Sitharaman also highlighted a special focus on places of religious and spiritual importance. In particular, destinations associated with the life and teachings of Lord Buddha will be given emphasis to attract both domestic and international visitors interested in Buddhist heritage tourism.

Promotion of Medical Tourism

India’s medical tourism sector will also receive significant attention under the Budget. The government will partner with the private sector to promote medical tourism and position India as a global destination for health and wellness. Along with this, the government plans to streamline visa norms and implement capacity-building measures to support the growth of the medical tourism sector.

Gyan Bharatam Mission: Preserving India’s Heritage

As part of the Budget’s focus on preserving and promoting India’s rich cultural heritage, Sitharaman also introduced the Gyan Bharatam Mission. This initiative will focus on documentation and conservation of India’s manuscript heritage. The mission aims to digitize more than 1 crore manuscripts in partnership with academic institutions, museums, libraries, and private collectors.

Additionally, a National Digital Repository will be established to facilitate the sharing of knowledge and preserve India’s traditional knowledge systems, making them accessible to future generations.

Streamlined Visa Processes and International Collaboration

To enhance international tourism, the Budget also includes proposals to streamline e-visa facilities for tourists, simplifying the process for foreign visitors. These measures aim to reduce barriers and make India a more accessible and attractive destination for tourists worldwide.

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