The Union Budget for FY 2024-25 has been unveiled, presenting various promises for the tourism industry. While the budget aims to support India’s growing tourism sector, the focus on targeted interventions may be augmented to achieve India’s vision of a ‘Viksit Bharat 2047’.
Tourism in India contributes 6.5 per cent to GDP (INR1,936,291 crores) and supports 4.3 crore jobs.1 In 2023, domestic tourist visits (DTVs) reached 2,510 crores,2 and foreign tourist arrivals (FTAs) recorded 9.2 crores.3 Furthermore, projections for 2024-25 are optimistic with total tourism contribution to the GDP forecasted to reach 7.6 per cent by 2034, creating approximately 6.3 crores jobs.4 Propelled by an expanding middle class and a 9 per cent annual growth5 in travel spending, India's domestic market is poised to surpass Japan and Mexico, reaching the fourth spot globally by 2030. Budgetary allocations thus can further this growth, supporting new projects and initiatives to attract more tourists.
Previously, the Interim Budget allocated INR2,479.62 crores to tourism, a 46.54 per cent increase from the previous year's revised budget of INR1,692 crores.6 The central sector schemes’ allocation increased to INR2,080.03 crores from INR1,939.22 crores,7 reflecting the commitment to enhance tourism infrastructure. Other provisions include developing tourism circuits, eco-tourism, adventure tourism; developing less-explored destinations; and improving connectivity by increasing investments in road, rail, and air connectivity. The Union Budget further proposes substantial support for the development of historical and religious sites, including Vishnupad and Mahabodhi Temple corridors, modeled after Kashi Vishwanath corridor. Development for Rajgir, which hold spiritual significance for Buddhists, Hindus and Jains, was also proposed for attracting pilgrims. Since Buddhist tourists arriving to India comprised a mere 0.005 per cent of all Buddhist adherents,8 this shall further boost religious tourism in the country. Lastly, development of Nalanda as a tourist center and revival of Nalanda University are also included, alongside support for Odisha’s tourism sector. These initiatives are expected to create jobs, stimulate investments, and unlock economic opportunities across various sectors, reflecting a holistic strategy to strengthen India's tourism industry.
