FM in Budget 2024 speech: India will promote tourism infrastructure in islands, including Lakshadweep.
The Interim Budget 2024 estimate for the tourism sector has increased by more than 2% from the previous budget, according to Union Finance Minister Nirmala Sitharaman.
Union Finance Minister Nirmala Sitharaman declared in her Interim Budget statement in Parliament on Thursday that India will build port connections and infrastructure in its islands, particularly Lakshadweep, to meet the growing demand for domestic travel.
The minister said that the states will be encouraged to embark on comprehensive development of iconic tourist destinations, branding and marketing them globally, and that the central government will provide long-term interest-free loans to the states for financing this development. The tourism budget estimate has increased by more than 2% from the previous budget.
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₹2,449.62 crores is the estimated budget for the fiscal year (FY) 2024–2025. In FY 2023–2024, it was ₹2,400 crores. The updated projection, however, was ₹1692.10 crores for 2023–2024.
“Projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep,” Sitaraman declared in response to the growing demand for domestic travel. This will also contribute to the creation of jobs.
Following Prime Minister Narendra Modi’s visit to the island earlier this month and the ensuing spat between India and the Maldives, Lakshadweep has seen an increase in tourist reservations.
“States will be encouraged to take up comprehensive development of iconic tourist centers, branding and marketing them at a global scale,” the finance minister continued. Furthermore, she stated that the federal government will offer the states long-term, interest-free loans on a “matching basis” in order to finance this development.
In addition, the minister suggested developing a system for “rating the centers based on quality of facilities and services.”
“The success of hosting the G20 meetings in sixty locations showcased India’s diversity to a global audience,” stated Sitaraman. Because of our robust economy, the nation is a desirable travel destination for conferences and business travelers. Today’s middle class also wants to travel and experience new things. The travel industry, particularly spiritual tourism, offers a plethora of chances for regional business development.
“It is hoped that the actual budget in July will take forward the statement of intent announced in the interim budget—such as international promotion, developing iconic destinations in partnership with states through an incentive-based system, further focus on domestic tourism and recognition of MICE (meetings, incentives, conferences and exhibitions) tourism capabilities of India further to the G20 Summit in India, and also continuing focus on new airports and Vande Bharat trains and high traffic highways,” stated Aashish Gupta, consulting CEO of the Federation of Associations of Indian Tourism & Hospitality (FAITH).”
“A long-term intent to promote a tourism, travel, and hospitality-driven economy will be reflected in announcements such as infrastructure status for the hospitality industry, focus on enhancing foreign tourist arrivals through enhanced overseas marketing budgets and free tourist visas, and reduction of GST to 12% for hotels and restaurants and 1.8% to tour operators with full setoffs,” the speaker continued.
