
In a bid to drive employment-led growth through tourism, the Union Budget 2025-26 has outlined several initiatives to enhance the sector’s contribution to the economy. The government will focus on developing the top 50 tourist destinations in the country in collaboration with state governments, using a challenge mode to encourage innovation and competitiveness.
To ensure efficient destination management, performance-linked incentives will be provided to states. Additionally, MUDRA loans will be extended to support homestay operators, boosting local entrepreneurship in the tourism sector.
The budget also places a special focus on destinations related to the life and times of Lord Buddha, highlighting India’s cultural and historical heritage. Furthermore, medical tourism and the ‘Heal in India’ initiative will be promoted through partnerships with the private sector, aiming to position India as a global destination for healthcare and wellness.