India budget tips

The travel industry in India had a long wish list for the Union Budget released Tuesday: Industry status for tourism; a uniform tax rate for hotels; streamlined registration for online travel agencies; infrastructure status for hotels.

In February, the Indian government had allocated INR 24.5 billion ($293 million) to the tourism sector as part of the interim budget, a slight increase from the prior year’s initial allocation of INR 24 billion ($290 million). But the Union Budget also reduced the global promotion allocation by a staggering 97% to just INR 30 million ($361,000).

India has experienced a significant drop in the World Economic Forum’s travel and tourism rankings since 2019, falling 10 places to the 39th position. This decline has come despite the sector’s overall growth and the nation’s natural and cultural assets.

India-based hotel aggregator and operator Oyo plans to increase its U.S. footprint by adding over 250 hotels in 2024. This would represent a 150% uptick compared to the previous year’s addition of 100 hotels.

India’s recently-unveiled Union Budget for the fiscal year 2024-2025 gave a big increase to the tourism ministry, but the amount for the global promotion took a major hit: A 97% reduction to just INR 30 million ($361,000).