Tourism Gets a Major Boost

In a significant move to enhance the tourism sector, Finance Minister Nirmala Sitharaman announced the development of 50 top tourist destinations in collaboration with state governments during the Union Budget 2025-26 presentation. This initiative aims to improve infrastructure and global appeal, leveraging India's rich heritage and cultural landmarks for economic growth.

Additionally, the government plans to extend Mudra loans to homestays, making travel experiences more accessible and boosting local economies. This strategic push is expected to significantly benefit the tourism and hospitality sector, particularly in smaller towns and villages.

Promoting Medical and Spiritual Tourism

The budget also highlights the promotion of medical tourism in partnership with private sector players, capitalizing on India's reputation for affordable and high-quality healthcare services. Furthermore, the focus on destinations linked to the life and teachings of Lord Buddha aims to strengthen India's position as a center for spiritual tourism.

Support for Rural and Cultural Tourism

To encourage rural and small-scale tourism enterprises, the extension of Mudra loans to homestays will allow small hospitality businesses to access credit and expand their services. This move is anticipated to boost employment in the tourism and hospitality sector, especially in rural areas.

Infrastructure Support for Mithilanchal

Financial support for the Western Kosi Canal project was also announced, which is expected to benefit 50,000 hectares in Bihar’s Mithilanchal region. The project aims to improve irrigation facilities, enhancing agricultural productivity and supporting local livelihoods.