The Indian Association of Tour Operators (IATO) has expressed deep disappointment over the drastic reduction in budget allocation for overseas tourism promotion in the Union Budget 2025-26.
Rajiv Mehra, President of IATO, has termed the allocation of just ₹3 crore to the Ministry of Tourism for international marketing as shocking and inadequate. The budget for overseas promotions and publicity has seen a steep decline from ₹33 crore to ₹3 crore, a move that Mehra finds contradictory to the government’s claims of recognizing tourism as a key driver of economic growth and employment generation. He emphasized that even the ₹33 crore previously allocated was insufficient, and the latest cut would severely impact India’s ability to compete in the global tourism market.
Mehra warned that with such a negligible budget, the Ministry of Tourism would be unable to participate in or set up the India Pavilion at major international travel and tourism marts. Additionally, the Ministry would not be able to conduct overseas publicity campaigns or organize international roadshows, both of which are crucial for attracting foreign tourists.
“This has been happening post-COVID, where every year, the Ministry of Tourism has to approach the Finance Ministry for ad-hoc approvals to participate in overseas travel marts. This reduced participation has weakened India’s presence in global tourism marketing,” Mehra stated.
In stark contrast, competing countries such as Singapore, Malaysia, Thailand, and Mauritius allocate significant funds to establish large-scale tourism pavilions at global travel fairs, strengthening their inbound tourism. Without a competitive marketing budget, Mehra cautioned that India may struggle to reach pre-COVID foreign tourist arrival numbers even in the next decade.
Calling for urgent intervention, Mehra urged Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to increase budget allocation for overseas tourism marketing and reinstate the Marketing Development Assistance (MDA) scheme, which previously provided financial aid to tour operators but was discontinued due to a lack of funds.
“We humbly request the Hon’ble Prime Minister and Hon’ble Finance Minister to support the travel and tourism industry by allocating substantial funds for overseas promotion. Without a strong international presence, India risks losing out on a significant share of global tourism,” Mehra said.