Union Budget 2025 Catalyzes Tourism Expansion and Creative Economy Recognition
The recently announced Union Budget for the fiscal year 2025 has placed significant emphasis on reinforcing travel and tourism as long-term drivers of economic growth, regional development, and job creation across India. Industry experts have welcomed these measures, highlighting their potential to shape India's inbound and outbound travel narrative for years to come.
Strategic Investments in Tourism Infrastructure and Connectivity
According to Manjari Singhal, Chief Growth and Business Officer at Cleartrip, the budget sets a solid foundation for India's travel ecosystem. The establishment of five regional medical tourism hubs is a strategic move that positions India as a premier destination for integrated hospitality and healthcare services. Furthermore, initiatives like high-speed rail corridors, the development of city economic regions, and the expansion of nature-based and experiential tourism offerings—including eco-trails, mountain circuits, wildlife experiences, and heritage tours—are expected to significantly enhance connectivity and diversify India's tourism portfolio.
Vishal Suri, Managing Director and CEO of SOTC Travel Limited, emphasized that these developments will not only improve accessibility but also create richer, more varied travel experiences for both domestic and international visitors.
North East Emerges as a Tourism Powerhouse
A particularly noteworthy announcement in the budget is the creation of new Buddhist circuits in the North Eastern region. This initiative is set to significantly boost tourism development across states including Sikkim, Manipur, Assam, Arunachal Pradesh, Mizoram, and Tripura. Rajesh Magow, Chair of the FICCI Tourism Committee and Co-founder & Group CEO of MakeMyTrip, noted that this continued government investment in spiritual tourism capacity creation addresses a sector with massive demand and substantial long-term potential.
The North East has firmly established itself as one of India's fastest-growing travel destinations. Data from Cleartrip reveals an extraordinary surge in activity, with overall hotel bookings in the region skyrocketing by 180% in 2025. Several cities are demonstrating breakout growth, with Dibrugarh, Imphal, and Silchar each recording nearly a twelvefold increase in bookings year-over-year. This explosive growth underscores the region's rising appeal and the effectiveness of targeted infrastructure and promotional investments.
The Orange Economy and the Rise of the Concert Economy
The budget has also brought the Orange Economy—often referred to as the creative economy—into sharp focus. This sector encompasses industries driven by intellectual property, artistic expression, and cultural heritage, such as gaming, film, animation, design, music, and live entertainment. By recognizing creativity and live entertainment as powerful engines of India's growing soft power, the government is acknowledging their role in generating significant economic value and employment.
Shoven Shah, Founder & CEO of TribeVibe Entertainment, highlighted that this push, combined with a focus on Tier 2 and Tier 3 cities, will accelerate the sector's growth by enabling high-quality live events to reach audiences far beyond metropolitan areas, thereby democratizing access to culture and entertainment.
Industry leaders have celebrated the formal recognition of the concert economy. Deepak Chaudhary, Co-Founder of EVA Live, stated that there is now a clear governmental understanding that concerts do more than just energize the live events ecosystem; they actively stimulate tourism, hospitality, and the hotel industry, providing a substantial boost to local economies.
Naman Pugalia, Chief Business Officer for Live Events at BookMyShow, pointed to the inclusion of live entertainment within the Orange Economy as a significant acknowledgement of the sector's escalating economic and cultural relevance. The growing recognition is underscored by landmark events, such as Coldplay's concerts in Ahmedabad, which reportedly generated an estimated ₹641 crore in economic impact. This has firmly placed live entertainment on the national economic agenda.
India's live entertainment ecosystem is now expanding rapidly across various formats, scales, and geographies. Demand is no longer confined to major metros but is robustly extending into Tier 2 and Tier 3 cities, signaling a healthy and broadening market for cultural experiences nationwide.
