Vikas Agarwal, Managing Director of SM Developers, a leading real estate organization, has lauded the recent budget for its positive implications on the tourism industry, both at the pan-India level and specifically for the Northeast region.
“At a country level, the budget has introduced significant infrastructure developments that are set to boost the tourism sector. The expansion of the highway network in states like Bihar, for instance, is a noteworthy initiative. Bihar’s immense tourism potential, with sites like Nalanda, Sarnath, and Bodh Gaya, will greatly benefit from enhanced connectivity, making these historic locations more accessible to tourists,” said Mr. Agarwal.
He also highlighted the broader positive effects of the infrastructure projects. “The announced infrastructure improvements will not only enhance tourism but also facilitate the transportation of construction materials, thereby aiding the construction industry. This dual benefit underscores the budget’s comprehensive approach to development,” he added.
Mr. Agarwal emphasized the budget’s growth-oriented nature, particularly in the context of the Northeast. “The infrastructure announcements for the Northeast will open up far-reaching areas, boosting regional tourism and economic development. This budget is a step in the right direction for ensuring balanced growth across different regions,” he stated.
Furthermore, he appreciated the potential increase in disposable income due to the changes in the tax structure. “The budget’s focus on increasing disposable income is a welcome move, as it will likely spur consumer spending and contribute to overall economic growth,” Mr. Agarwal noted.
In conclusion, Mr. Agarwal expressed his optimism about the budget’s impact on the tourism industry. “Overall, this budget is a positive and growth-oriented plan that addresses key areas of infrastructure and economic development. It sets the stage for sustained growth in the tourism sector and beyond,” he remarked.
However, Mr. Agarwal also suggested areas for improvement. “At a country level, the budget had the potential to introduce significant structural changes in taxation. For instance, separate taxation for restaurants and hotels limits the commercial value that hotel-based restaurants can offer compared to standalone establishments. Addressing this could have been a significant opportunity for the budget,” he mentioned. He also noted concerns about the Northeast, pointing out that the reduction in the budget for the Regional Connectivity Scheme (RCS) could adversely affect intra-Northeast travel by increasing airfares. “Despite the budget cut, it’s essential that the Northeast retains a significant portion of the RCS funds to ensure affordable air travel within the region,” he emphasized.
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