Indian Finance Minister Piyush Goyal presented the much-anticipated Union Budget on 1st February. As 2019 will be an election year, it was somewhat of a populist budget as expected. Unfortunately, there was no mention of tourism or any benefits given to the struggling industry, which now accounts for 10% of the Indian GDP.
Here are some highlights:
- The new budget prioritises infrastructure for railways and airports by allocating hefty investment to add fillip to ongoing progress
- For airlines, business has grown exponentially in the last year as government’s UDAN Yojana has made travel more accessible to people across the country
- The allocation to roadways under PMGSY (Pradhan Mantri Gram Sadak Yojna) is expected to bring enhanced access and connectivity, bringing newer tourism destinations on the radar, especially in Tier II and III regions
- The move by the government to increase tax exemptions is expected to improve savings thereby leading to more discretionary spends and travel and tourism may be one of the beneficiaries