By S.N.M.D. Sarkar,
Indian Union Budget 2021-22: Union Budget 2021 upholds properly-planned framework to increase the travel sector. A whopping allocation of Rs 2,83,846 crore for healthcare, which is about 137 per cent greater than the final spending budget. This outlay also consists of Rs 35,000 crore for Covid-19 vaccines, making sure more rapidly rollout of mass vaccination and restoring economy sooner than anticipated.
Amid pandemic, the budgetary allocation for the Ministry of Tourism has been slashed from Rs 2,500 crore in 2020-21 to Rs 2026.77 crore this year, in a blow to the tourism business which is reeling from big losses. Small tourism firms have been severely hit and had been hopeful for a revival.
Tourism sector mainly has two schemes – PRASAD and Swadesh Darshan – each of which have been continued this year. A new scheme of iconic websites has also been introduced. Infrastructure is substantial for tourism and this spending budget has talked of air connectivity to smaller sized cities. This will advantage tourism. The spending budget has integrated the Development of Iconic Tourist Sites/ Destinations, a new central sector scheme, which has been framed for the improvement of 19 identified iconic destinations in the nation following a holistic strategy involving infrastructure and talent improvement, use of technologies, attracting private investment, branding and marketing and advertising.
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The tourism sector saw a slight demand enhance at the finish of 2020. Furthermore, higher emphasis on well being infrastructure also positions India as the international wellness location of tomorrow. However, the sector was expecting some relief measures such as treating tourism at par with the IT sector or enhancement of the ‘Service Export from India Scheme’ from the existing 7 per cent. None of these measures have identified a mention in the spending budget proposal when the pandemic hit the tourism the hardest with inbound tour operators staring at nearly nil revenue till date with no instant revival in sight.
A higher emphasis on debt financing, coupled with the budget’s reformist tone which includes measures such as greater disinvestment target, raising of farm revenue, sops for cost-effective housing and a variety of other initiatives to give an all round increase to the economy and spurring consumption & investment.
These reforms & development-oriented initiatives are all set to position India as an evolving international tourism hub and drive greater demand for funding propelling the NBFC sector.
Meanwhile, allowance of (One Person Company) OPC would encourage entrepreneurs to develop without having any restrictions on paid-up capital and turnover. With this, OPCs have the flexibility to convert into any other kind of business at any point in time.
Lastly, the feared imposition of Covid cess has been aptly missed by the Finance Minister which brings a cheer across the industries.
(The author is CEO, TravelKaroo. Views expressed are individual and do no reflect position or police of the TheSpuzz Online.)