As the Union B2025 budget nears, stakeholders in the travel and tourism sector are voicing their expectations for policy changes to foster sustainable growth and competitiveness. Industry leaders highlight the need for tax reforms, simplified compliance, and strategic investments to enhance domestic and inbound tourism. Key issues include a streamlined GST structure, input tax credits, and improved infrastructure in emerging tourism areas. Experts believe that targeted reforms could unlock the sector’s potential and contribute to India’s economic growth.
Sharing the pre-budget expectations, Hussain Patel, Director, TripJack said, “The travel and tourism industry anticipates that the Union Budget will address key challenges and foster sustained growth. Rationalizing GST rates for travel agents and introducing input tax credits can reduce operational costs and enhance market competitiveness. Simplifying compliance processes can further improve administrative efficiency for businesses. Emphasizing digitization and targeted skill development programs can empower travel agents to adapt to emerging industry trends. Additionally, promoting domestic and inbound tourism through innovative awareness campaigns and eco-friendly initiatives can drive sustainable development and bolster the sector’s long-term potential.”
Dhruv Shringi, Co-founder and CEO, Yatra Online, shared, “The travel and tourism industry is a significant contributor to India’s economic and employment growth, yet its full potential remains untapped. A nationwide grant of industry status to the tourism sector can unlock consistent benefits like streamlined property taxes, reduced energy tariffs, and access to financing, spurring investment across the country. Rationalizing GST rates, particularly merging the 12% and 18% slabs for hotel tariffs, alongside allowing Input Tax Credit (ITC) for hotel construction, will reduce costs and make travel more affordable for both domestic and international tourists.”
“Additionally, we urge the government to simplify GST compliance for online travel agencies by introducing centralized registration, reducing administrative overheads, and leveling the playing field for Indian players against global competitors. Investments in tier II and III city infrastructure and a renewed focus on global tourism campaigns, akin to ‘Incredible India,’ will further drive inbound tourism and balanced regional growth. These measures will empower the sector to emerge as a catalyst for India’s economic transformation,” he concluded.
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