What Budget 2024-25 Means For Tourism And Allied Sectors

Industry leaders react to India’s Union Budget 2024-25 which was unveiled today

Rajesh Magow, Co-founder & Group CEO, MakeMyTrip 

The government’s continued emphasis on infrastructure development is commendable. Enhanced road infrastructure will bolster the travel and tourism sector. We also welcome the initiatives to develop iconic spiritual and cultural sites into world-class tourist hotspots.

 The decision to reduce the TDS rate on e-commerce operators to 0.1% is a welcome move. Furthermore, the provision of credit for TCS against income tax under ‘Income from Salaries’ is logical and will provide much-desired relief to taxpayers who travel internationally.

Rikant Pittie, Co-Founder, EaseMyTrip

“The government’s attempt in positioning India as the global tourist destination is evident in the Union Budget 2024-25. Demonstrating efforts to promote religious tourism and domestic tourism infrastructure. With special focus on Bihar, Nalanda, and Odisha, the government plans to develop the iconic religious sites to support its infrastructure and transform them into world class pilgrim and tourist destinations. We are optimistic that this will enhance the overall experience of the tourists visiting these religious sites and will uplift the state tourism.

Additionally, the government has also shown interest in simplifying taxation in cruise business by proposing a presumptive taxation for cruise ship operations in India. This initiative aims to encourage foreign cruise owners to operate in India, thereby providing a significant boost to cruise tourism in the country.”

Santosh Iyer, MD & CEO, Mercedes-Benz India

 The budget clearly underlines Govt’s priorities on creating a robust foundation for a developed Indian economy. We are glad the capex on infra projects tops govt’s priority, with 3.4% GDP allocation. We were expecting GST announcement of long-term continuation of reduced GST for BEVs; however, developing a climate finance taxonomy to aid capital for climate adaptation and mitigating climate change, is a step in the right direction for achieving climate commitments.

Anil Parashar, Chair – Tourism & Hospitality Committee, PHDCCI (PHD Chamber of Commerce and Industry)

We commend the government’s visionary approach in recognizing the immense potential of India’s tourism sector. The development plans for the Vishnupath and Mahabodhi temples, as well as Rajgir and Nalanda will not only enhance the spiritual and historical significance of these sites, but also drive economic growth and create employment opportunities. This budget is a significant step towards making India a top global tourist destination.

Rajan Sehgal, Co-Chair – Tourism & Hospitality Committee, PHDCCI (PHD Chamber of Commerce and Industry)

The focus on advancing tourism in Odisha and other culturally rich states

is highly commendable. By improving tourism infrastructure and promoting our diverse natural and historical attractions, we are poised to attract global tourists, thereby boosting local economies and fostering sustainable development. Simpler tax regime for foreign cruise companies for operating domestic cruise vessels in India will promote cruise tourism.

Nikhil Sharma, Managing Director and Area Senior Vice President- South Asia, Radisson Hotel Group

We welcome the Union Budget 2024-2025 which focuses on positioning India as a global tourism hub through progressive initiatives. The surge in spiritual tourism has been recognized, and we are excited to see the sector receiving much-needed support in this year’s budget. The development of road connectivity projects, with a special emphasis on spiritual and cultural corridors, underscores the Government of India’s commitment to fueling the growth of the country’s rich cultural and spiritual network of tourism. We are optimistic that this development will not only propel the domestic tourism sector but will also provide an opportunity for foreign tourists to further explore the rich culture of India.