Budget 2025: Govt to develop top 50 tourist sites, boost homestays with mudra loans

NEW DELHI: The Union government will develop 50 top tourist destinations in partnership with state governments, Finance Minister Nirmala Sitharaman announced while presenting the Union Budget 2025-26 on Saturday. In a major push for the tourism sector, she also revealed plans to extend Mudra loans to homestays, making travel experiences more accessible and boosting local economies.

Tourism gets a major boost

Sitharaman emphasized that India's diverse heritage and cultural landmarks hold immense potential for economic growth. "We will work with states to develop 50 top tourist sites, enhancing their infrastructure and global appeal," she said.

Additionally, medical tourism will be promoted in collaboration with private sector players, tapping into India's growing reputation as a hub for affordable and high-quality healthcare services. The government will also focus on destinations linked to the life and teachings of Lord Buddha, further strengthening India's position as a center for spiritual tourism.

Support for rural and cultural tourism

To encourage rural and small-scale tourism enterprises, Sitharaman announced the extension of Mudra loans to homestays, allowing small hospitality businesses to access credit and expand their services. This move is expected to boost employment in the tourism and hospitality sector, particularly in smaller towns and villages.

Infrastructure support for Mithilanchal

The Finance Minister also announced financial support for the Western Kosi Canal, which will benefit 50,000 hectares in Bihar’s Mithilanchal region. The canal project is expected to improve irrigation facilities, enhancing agricultural productivity and supporting local livelihoods.


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