This was a unique opportunity for the government to make Tourism as an instrument for job creation, poverty eradication, foreign exchange earnings and putting Indian economy on a fast track. Unfortunately, this opportunity has not been fully utilised. Our Finance Minister could have done much more for the country through Tourism.
While we welcome the reduction in Aviation Turbine Fuel and the initiatives to develop new circuits in hill and mountain regions, convert archaeological sites into experiential cultural destinations, create additional tourism corridors and strengthen rail and road infrastructure—which will undoubtedly support domestic tourism—but the Ministry of Tourism was created to market and promote Tourism to India from all over the world but in this Budget the Inbound International Tourists interest has completely been ignored.
The inbound tourism industry has expressed disappointment over the limited emphasis on tourism promotion in the Union Budget, especially at a time when international tourist arrivals to India are yet to return to pre-pandemic levels.
Tourism has not been given Export Industry Status and incentives on Foreign Exchange Earnings have not been re-introduced.
Dr Subhash Goyal, Chairman, Aviation and Tourism Expert Committee, Indian Chamber of Commerce (ICC) said, while the proposal to add ten thousand tourist guides is welcome, such steps will have limited impact unless supported by strong measures to attract foreign tourists. Without effective international promotion, additional manpower alone cannot drive inbound growth.
One of the biggest concerns is the sharp reduction in the tourism marketing budget, particularly for overseas promotion. Marketing and promotional expenditure has reportedly fallen by over 95 per cent, from around ₹103 crore to ₹3.5 crore, severely impacting global campaigns such as Incredible India and international roadshows. These cuts weakening India’s visibility in key source markets like Europe, United States and Southeast Asia.
The Budget has also ignored the long-standing demand for restoration of Market Development Assistance (MDA) for tour operators, which is critical for overseas marketing efforts.
Commenting on the Budget, Dr Subhash Goyal, said, “Tourism is one of the fastest-growing industries and a major source of employment and foreign exchange in the country. This Budget could have done more to support inbound tourism, especially through overseas promotion. Without adequate overseas promotion and direct support for inbound tourism, infrastructure investments alone will not deliver the results.”
All the Industry experts also note that the reduction in TCS on overseas travel mainly helps outbound tourism rather than inbound tourism.
The sector believes that with stronger focus and targeted support, tourism could have played a much bigger role in job creation, foreign exchange earnings and accelerating India’s economic growth.
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