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India Sanctions ₹5,756 Crore Tourism Projects to Boost Hospitality, MICE and Destination Development

117 tourism infrastructure projects approved across India, creating fresh opportunities for hotels, restaurants, homestays, travel companies and tourism investorsKey Highlights₹5,756.62 crore sanctioned for 117 tourism infrastructure projectsProjects approved under Swadesh Darshan 2.0, PRASHAD, Challenge Based

117 tourism infrastructure projects approved across India, creating fresh opportunities for hotels, restaurants, homestays, travel companies and tourism investors

Key Highlights

  • ₹5,756.62 crore sanctioned for 117 tourism infrastructure projects
  • Projects approved under Swadesh Darshan 2.0, PRASHAD, Challenge Based Destination Development and other schemes
  • Strong focus on MICE, eco-tourism, spiritual tourism, heritage tourism and beach destinations
  • Government expanding homestays, convention centres, digital tourism and connectivity
  • Infrastructure expected to generate fresh demand for hotels, restaurants, local food businesses and travel operators

News

The Ministry of Tourism has approved 117 tourism infrastructure projects worth ₹5,756.62 crore over the past two financial years, signalling one of the government’s largest investments in destination development and tourism infrastructure.

According to a written reply by Tourism Minister Gajendra Singh Shekhawat in the Lok Sabha, the projects span multiple flagship schemes including Swadesh Darshan 2.0, PRASHAD, Challenge Based Destination Development, Assistance to Central Agencies, DA-JUGA and Special Assistance to States for Capital Investment (SASCI).

The investment covers destinations across almost every state, with projects ranging from spiritual circuits and eco-tourism hubs to convention centres, heritage sites, beaches and cultural destinations.

The Ministry said the projects are aimed at strengthening tourism infrastructure, improving visitor amenities and enhancing destination experiences.

Focus on MICE and Convention Touris

Several sanctioned projects are expected to strengthen India’s Meetings, Incentives, Conferences and Exhibitions (MICE) ecosystem.

Among the notable projects are:

  • International Convention Centre, Bhopal
  • Bangaram MICE destination in Lakshadweep
  • Daman Convention Centre
  • Conference Centre in Mizoram
  • Multiple tourism infrastructure projects supporting business events

The Ministry is also continuing to promote the “Meet in India” initiative to position India as a global MICE destination.

Spiritual Tourism Receives Major Push

A significant share of funding has been directed towards pilgrimage and spiritual tourism.

Projects include:

  • Khatu Shyam Ji (Rajasthan)
  • Rameswaram (Tamil Nadu)
  • Bodh Gaya (Bihar)
  • Chintpurni Temple (Himachal Pradesh)
  • Orchha (Madhya Pradesh)
  • Anandpur Sahib (Punjab)
  • Multiple temple development projects under the PRASHAD Scheme

The government continues to position spiritual tourism as a key growth segment capable of attracting both domestic and international visitors.

Digital Tourism Platform Expands

The Ministry also highlighted the expansion of the Incredible India Digital Platform, which now offers:

  • Multilingual travel information
  • Hotel bookings
  • Flight bookings
  • Cab and bus reservations
  • ASI monument ticket booking

The platform is designed as a one-stop travel interface for both domestic and international travellers.

Focus on Sustainable and Niche Tourism

The government is simultaneously investing in multiple niche tourism segments, including:

  • Eco-tourism
  • Rural tourism
  • Tribal tourism
  • Wellness tourism
  • Medical tourism
  • Adventure tourism
  • Wedding tourism
  • Heritage tourism

New national strategies have also been prepared for sustainable tourism, rural homestays and adventure tourism.

Hospitality Industry Impact

The latest round of tourism infrastructure investments is expected to create significant opportunities across India’s hospitality ecosystem.

Improved tourism infrastructure generally translates into higher visitor footfall, creating demand for:

  • Hotels and resorts
  • Restaurants and cafés
  • Homestays
  • Tour operators
  • Destination management companies
  • Event organisers
  • Local food businesses
  • Transport providers

The expansion of convention centres and MICE infrastructure could also drive weekday occupancy for hotels while increasing demand for banquet, catering and corporate event services.

For food and beverage businesses, improved tourism destinations often result in greater spending on regional cuisine, cafés and experiential dining.

Travel & Tourism Outlook

Industry stakeholders are likely to watch the implementation timeline closely, as several sanctioned projects focus on destinations with high tourism potential including beaches, heritage cities, eco-tourism zones and pilgrimage centres.

If executed on schedule, the projects could strengthen destination competitiveness, improve visitor experience and support long-term growth across India’s travel, hospitality and tourism sectors.

komal.hospi@gmail.com

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