The Union Budget 2023-24, presented by the Indian finance minister Nirmala Sitharaman on 1st February 2023, has brought a wave of relief to the Indian hospitality sector, which has been greatly impacted by the COVID-19 pandemic. The government has made a significant allocation of funds for the revival of the hospitality industry, which has seen a decline in business due to the pandemic.
The budget announced an allocation of Rs 2,400 crore for the development of the tourism industry, including the hospitality sector. This will be utilized for the development of tourist infrastructures such as tourist facilitation centers, wellness centers, and more. The government has also proposed the creation of a National Recruitment Agency to provide employment opportunities for the youth in the hospitality sector.
The budget has also proposed the setting up of a National Technical Textiles Mission, with a target to increase exports of technical textiles to $30 billion by 2025. This will create job opportunities in the hospitality sector, as technical textiles are widely used in the manufacturing of bed linens, towels, and other hospitality products.
Additionally, the budget has proposed a reduction in the corporate tax rate for new hotels, restaurants, and tourism-related businesses. This move is expected to encourage investment in the hospitality sector and provide a boost to the industry. The government has also proposed a scheme to provide easy access to credit for small businesses in the hospitality sector, which will help them to cope with the impact of the pandemic.
In conclusion, the Union Budget 2023-24 has provided a much-needed boost to the Indian hospitality sector, which has been hit hard by the COVID-19 pandemic. The allocation of funds for the development of the tourism industry and the reduction in corporate tax rates for new businesses are expected to help revive the industry and create job opportunities for the youth. The budget has given a ray of hope to the Indian hospitality sector and will help it to bounce back from the impact of the pandemic.