The hospitality sector is a vital contributor to India’s economy, driving tourism, creating jobs, and boosting the nation’s cultural and economic appeal. As the Union Budget 2025 approaches, the industry is keenly anticipating reforms that can propel its growth, particularly in areas like tax simplification, infrastructure development, and financial incentives for sustainable practices. Addressing these concerns is crucial to enabling the sector to recover fully post-pandemic and achieve its true potential as a global tourism and hospitality hub.
In this article, we bring you insights and pre-budget expectations from renowned leaders in the hospitality industry. Their expert opinions highlight the critical areas where government support is needed to streamline operations, enhance competitiveness, and drive long-term growth in this dynamic sector. Let’s explore their thoughts on shaping the future of hospitality in India.
Mr. Rajesh Magow, Co-Founder & CEO, MakeMyTrip
“For the travel and tourism sector, we are hopeful that the 2025 Union Budget will include measures to promote tourism, especially through strengthening infrastructure, improving air connectivity, and incentivizing tourism promotion in Tier 2 and Tier 3 cities. The creation of a fund for destination marketing and further expansion of the visa-on-arrival scheme can help position India as a global tourism hub.”
Mr. Akash Agarwal, Owner, Rajasthali Resort & Spa
“As an owner in the hospitality industry, I have high hopes for Budget 2025. Incentives for domestic travel, easier access to finance, and lower GST rates can drive employment, attract more tourists, and aid the industry’s recovery from pandemic losses. Streamlined approval processes and support for sustainable practices would create a more conducive environment for growth. We are optimistic that these changes will significantly advance the industry’s development.”
Sumit Dang, Managing Director, Seven Seas Hospitality
“For the hospitality industry, we expect a simplified tax structure that will help manage costs and improve margins. Additionally, targeted allocations for tourism infrastructure, such as transport connectivity and development of tourism hubs, will make India a more attractive destination. We also hope for support for the growing wedding industry and eco-friendly initiatives that align with global sustainability standards. Investments in hospitality education will help address the demand for skilled professionals.”
Mr. Ankit Sahni, Founder, The Hazelnut Factory
“The hospitality industry has suffered due to the pandemic, and the Budget 2025 should offer relief through incentives like tax rebates for hospitality startups. Additionally, the sector needs more funding for technology integration and sustainability initiatives, which will help businesses stay competitive and eco-conscious.”
Vishal Kamat, Executive Director and Chairman of CII Maharashtra Chapter
“As the Executive Director and Chairman of CII Maharashtra Chapter, I see the Union Budget 2025 as a pivotal opportunity for meaningful reforms in the hospitality sector. While I appreciate the government’s investments in infrastructure, our industry needs more than just highways and airports to thrive. Simplifying visa policies, streamlining GST, and updating outdated regulations would significantly ease operations and position India as a global transit hub.
Tourism promotion has been a game-changer. Initiatives like the G20 summit and state-level cultural festivals create ripple effects across local economies, benefiting everyone from tea vendors to transport operators. Continued focus on such efforts can drive demand and boost the hospitality ecosystem.
Sustainability is another critical area. While our industry is already embracing eco-friendly practices, we need support to go further. Boosting EV infrastructure, offering incentives for green buildings, and promoting renewable energy use would help us align with global standards.
Improving ease of doing business is equally vital. Simplifying tax procedures, encouraging diversity in the workforce, and fostering innovation in sustainability are steps that could attract more investment and growth in our sector.
With the right reforms, I believe this budget can unlock the immense potential of India’s hospitality industry, paving the way for long-term growth and global competitiveness.”
Nikhil Sharma, Managing Director and Area Senior Vice President, South Asia, Radisson Hotel Group
“India remains a high growth potential market for hotel chains, with an expected revenue CAGR of 6-8% over the next 5 years. The industry is in a strong position right now, with the domestic travel upsurge being driven by structural factors like increase in disposal income, growing pie of the middle class and Government initiatives like ‘Dekho Apna Desh’. Tier-II and III markets are also emerging as lucrative options with preference for branded hotels”
Mr. Pankaj Prakash Sharma, Founder & CEO, Happa Foods
“We hope that Budget 2025 will include provisions to support businesses in the food sector, especially those working on sustainable and organic products. There should also be an emphasis on supporting local food manufacturers, especially those focused on children’s health and well-being.”
Mr. Saurabh Agrawal, Co-founder and CEO
“The Indian retail and D2C sectors are at a pivotal moment, driven by rapid digital transformation and evolving consumer preferences. As we approach Union Budget 2025, the apparel and retail sectors call for essential measures to drive growth and innovation within the system. As a growing brand, we believe that policies aimed at enhancing ease of doing business, including a simplified and uniform GST rate structure to enhance affordability and reduce compliance burdens along with encouraging innovation through tax benefits or grants can have a significant impact. Enhanced support for digital infrastructure and low-cost financing options for evolving businesses are also crucial at this juncture. Expanding the Production-Linked Incentives (PLI) scheme will bolster domestic manufacturing in line with the ‘Make in India’ initiative, while rationalizing customs duties is necessary to create a level playing field for local products against imports. Additionally, improvements in cash flow through a proposed cash pool structure within group companies are sought. This budget represents a unique opportunity to prioritize quality and innovation in products, significantly impacting both businesses and consumers, and positioning India’s retail landscape for a prosperous future.”
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