Budget 2024: FM to provide interest-free loans to states to promote tourism; hotel and travel stocks mixed

Budget 2024: In order to boost India's tourism, Finance Minister Nirmala Sitharaman announced in her Interim Budget 2024 speech that the government would provide long-term interest-free loans to states for financing tourism-related development.

As of 12:45 p.m., among travel and hotel stocks, Thomas Cook gained over 4 per cent, whereas Indian Hotels traded over half a per cent lower, EIH was down nearly 1 per cent, and Lemon Tree Hotels was also down over half a per cent. 

Meanwhile, Easy Trip Planners shares rose over half a per cent, Praveg climbed over 3 per cent, but BLS International, IRCTC, and Yatra Online slipped over 1 per cent.

In her Interim Budget speech, FM said that the successful organisation of G20 meetings in sixty places presented a diversity of India to a global audience. She added that the country's economic strength has made it an attractive destination for business and conference tourism.

Further to boost tourism in India, she said, "States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at a global scale. A framework for a rating of the centres based on the quality of facilities and services will be established. Long-term interest-free loans will be provided to states for financing such development on a matching basis."

While presenting the interim Union Budget, she also said, "Our economic strength has made the country an attractive destination for business and conference tourism."

The mention of Lakshadweep by the finance minister is significant, as Prime Minister Narendra Modi visited the island on January 4. A row erupted on social media when a minister and some other leaders of the Maldives used derogatory remarks against the prime minister after he posted a video of him on a pristine beach in Lakshadweep.

The government implements the move to address the emerging fervour for domestic tourism. "Projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep," the speech read.

According to FM, this will help in generating employment.

(With inputs from agencies)

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