Union Budget 2025 Reactions | 'Developing 50 top tourist destinations a big step to boost the sector,' says Anand Vardarajan, Chief Business Officer at Tata Asset Management

'We are seeing a surge in travel led by leisure, business, pilgrimage or even medical tourism. Specific interventions could further bolster prospects for this sector,' he said.

Finance Minister Nirmala Sitharaman tabled the much anticipated Union Budget for FY 2025-26 on February 1, which also marked a record 8th Budget presentation for the 65-year-old. In a major relief to the middle class, Sitharaman announced that there would not be any tax liability on income upto Rs 12 lakh for salaried persons under the new tax regime and raised the basic exemption from Rs 2.5 lakh to Rs 4 lakh.

Speaking on this front, Anand Vardarajan, Chief Business Officer at Tata Asset Management, said, "Tourism was one of the significant contributor to services in GDP in FY24. The announcement of developing 50 top tourist destinations in a holistic way is a big step to boost this sector even further. We are seeing a surge in travel led by leisure, business, pilgrimage or even medical tourism. Specific interventions could further bolster prospects for this sector. We have a Tourism fund which strives to take advantage of such opportunities that the sector presents."

"Additionally, the increase in tax exemption limit upto Rs 12 lakhs undoubtedly puts more money in the pockets of the individual. This is now nearly 6 times the per capita GDP up from nearly 3 times in the past. This may possibly find its way into either spending or investment. Some of the additional income can now be squirrelled into SIPs for long term investment and this bodes well for individuals to consider this as an option," Vardarajan added.

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Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.