Kerala’s hope rises as budget backs medical tourism, top destination development
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New Delhi: Kerala stands to gain significantly from the Union Budget 2025-26, after Finance Minister Nirmala Sitharaman announced plans to develop the country’s top 50 tourist destinations in partnership with states through a “challenge mode.” Given Kerala’s diverse landscapes and globally renowned tourist spots, the state expects a major boost from this initiative.
The budget highlighted tourism as a key driver of employment-led growth, with new measures to enhance infrastructure, skill development, and travel ease. Additionally, the ‘Heal in India’ initiative, which promotes medical tourism, is expected to benefit Kerala’s thriving Ayurveda sector through public-private partnerships, capacity building, and relaxed visa norms.
Presenting her eighth consecutive Union Budget, Sitharaman outlined steps to further strengthen tourism, including promoting homestays with Mudra loans and improving connectivity to key destinations. State governments will provide land for essential infrastructure, while hotels in major tourist spots will be included in the harmonised infrastructure list for better financing and development support.
To encourage skilled employment in tourism, the central government will organise intensive training programmes, including courses in hospitality management. States excelling in destination management—maintaining tourist amenities, cleanliness, and effective marketing—will receive performance-linked incentives.
Additionally, to attract international visitors, streamlined e-visa facilities and visa fee waivers for selected tourist groups will be introduced. The budget also includes special initiatives for sites linked to Gautama Buddha’s life, reinforcing its commitment to heritage and spiritual tourism.