Interim Budget 2024: Govt to improve tourism infra on islands including Lakshadweep, says Sitharaman

Finance Minister Nirmala Sitharaman on Thursday said the Centre will be taking up projects to improve amenities on the country's islands, including Lakshadweep - the Indian island that gained attention following Prime Minister Narendra Modi's visit last month. 

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The online search for Lakshadweep, which has beautiful beaches and a lush green landscape, surged multi-year high last month following some adverse comments from people in Maldives against PM Modi and India.        

Today, the finance minister, during her budget presentation speech, said that 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," she said. 

Sitharaman further said that the success of organizing G20 meetings in sixty places presented a diversity of India to a global audience. She said that the country's economic strength has made it an attractive destination for business and conference tourism. "Our middle class also now aspires to travel and explore. Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship," she said during her budget speech in Parliament.

The finance minister said the states will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at a global scale. "A framework for rating of the centres based on quality of facilities and services will be established," she said, adding that long-term
interest-free loans will be provided to States for financing such development on a matching basis.

Reacting to these announcements, MakeMyTrip's Co-founder and Group CEO said the government's commitment to bolster domestic tourism through initiatives spanning rail and air travel, coupled with the ongoing emphasis on tourism-led destinations, particularly in the realm of island tourism and spiritual tourism, "reflects a strategic vision for the long-term growth of the T&T sector."

"The allocation of interest-free loans to state governments for the creation of iconic tourist destinations is a noteworthy step," he said, adding that the expansion of airports and the PM Gati Shakti program are pivotal in enhancing connectivity to previously unexplored regional gems. 

Magow said that these initiatives will take domestic discovery to farther reaches of the country, thereby empowering local entrepreneurs and creating employment opportunities. "While the specifics are yet to be seen, collaboration between the industry and the government is key to maximizing impact, ensuring quality standards, and fostering sustainable tourism models for an enhanced traveller experience."