The interim budget for 2024-25 tried to cash in on the emerging enthusiasm for domestic religious tourism and the interest in Lakshadweep in the wake of the tiff with the Maldives.

“To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep. This will help in generating employment also,” finance minister Nirmala Sitharaman said.

Long-term interest-free loans will be provided to states for financing such development on a matching basis.

Shamsher Dewan, senior vice-president and group head of corporate ratings, Icra, said, “The government’s continued thrust on tourism and focus on addressing some of the structural bottlenecks augur well for hotel demand.”

“We foresee that this will have a multiplier impact and drive significant investment from the private sector,” said K.B. Kachru, chairman Emeritus and principal adviser,
Radisson Hotel Group, South Asia.

Rajesh Magow, co-founder and group CEO, MakeMyTrip, said the commitment to bolster domestic tourism reflects a strategic vision for the long-term growth of the travel and tourism sector.

Pradeep Shetty, president of the Federation of Hotel & Restaurant Associations of India, said the enhanced focus will help the 100 million tourists by 2047.