The Federation of Hotel & Restaurant Associations of India (FHRAI), the third-largest hospitality association in India, warmly welcomes the Union Budget 2025-26. The Budget’s emphasis on the growth and development of India’s tourism and hospitality sectors is a timely and progressive step. FHRAI is pleased with the government’s focus on enhancing tourism infrastructure and promoting India as a global tourism destination.
The proposal to develop the top 50 tourist destinations in partnership with state governments, through a challenge mode, is a significant initiative. This collaboration will not only lead to an improved infrastructure but will also ensure that tourism benefits reach all corners of the country. With the inclusion of hotels in these destinations in the Harmonious Master List, the hospitality sector is poised to gain from better financing options. This aligns with the long-standing request of the industry for the granting of Infrastructure Status to hotels, a move that will enable better access to funding for upgrading facilities and services, ensuring that India continues to offer world-class experiences to its visitors.
K. Syama Raju, President of FHRAI said, “The budget focuses on building better tourism infrastructure and promoting medical and wellness tourism demonstrates the government's commitment to fostering India’s position as a global leader. With new initiatives aimed at improving regional connectivity, visa simplification, and promoting homestay businesses, the government has outlined a strong roadmap for driving sustainable growth in the tourism and hospitality sector. These initiatives, combined with the introduction of Mudra loans for homestays, will help create new opportunities for local entrepreneurs, boosting job creation and tourism in rural and lesser-known areas of the country.”
The Union Budget's emphasis on improving regional connectivity is another welcome step. The introduction of the modified UDAN scheme, aimed at enhancing connectivity to 120 new destinations and increasing the number of passengers by 4 crore over the next 10 years, will make travel more accessible. This initiative will also open up new opportunities for tourism, especially in emerging destinations. The ease of travel and connectivity will contribute significantly to increasing tourism traffic, benefiting local communities and the economy.
The government’s efforts to promote medical and wellness tourism through the ‘Heal-in-India’ initiative hold great promise. This initiative is expected to not only boost India’s medical tourism sector but also strengthen the country’s global reputation as a cost-effective and high-quality healthcare destination. The inclusion of visa-fee waivers and e-visa options for certain tourist groups will further simplify travel to India, making it a more attractive destination for international visitors.
FHRAI looks forward to working closely with the government to ensure the effective implementation of these initiatives and to continue contributing to India’s tourism and hospitality growth. The Union Budget 2025-26 provides a clear path for sustained development in the sector, fostering growth, innovation, and opportunities for all.