Sanjeev Nanda highlights how government policies like Swadesh Darshan 2.0 and PRASAD are driving innovation, sustainability, and regional inclusivity in India’s transforming hospitality sector.
The hospitality industry is a pillar of India’s economy, contributing significantly to GDP and generating employment across urban and rural areas. With its diverse cultural heritage, scenic landscapes, and growing reputation as a global destination, India is a treasure trove for travellers. The government recognizes the potential of this sector and has implemented various policies to harness its full capacity. From sustainable tourism to regional development, these initiatives are shaping the industry’s trajectory. Sanjeev Nanda, a prominent leader in the hospitality sector, has emphasized the importance of aligning industry strategies with government initiatives. “The hospitality sector’s future is intrinsically linked to how effectively we leverage government policies to drive innovation and inclusivity. It is a partnership that holds immense promise.”
Swadesh Darshan 2.0 – Revolutionizing Tourism Infrastructure
The Swadesh Darshan scheme, reimagined as Swadesh Darshan 2.0, aims to develop 15 thematic tourism circuits that highlight India’s unique cultural, natural, and historical diversity. By focusing on sustainable tourism, this initiative seeks to balance development with environmental conservation. The scheme also encourages private-sector participation to create world-class infrastructure and services.
Sanjeev Nanda suggests “Themed circuits allow us to offer curated experiences that resonate with travellers’ aspirations. Hoteliers must seize this chance to collaborate with policymakers and innovate hospitality offerings.” These circuits, such as wellness, eco-tourism, and cultural tourism, provide immense scope for businesses to design unique, high-quality experiences for domestic and international travellers.
National Mission on Pilgrimage Rejuvenation and Spiritual Tourism Infrastructure Development (PRASAD)
Religious tourism, deeply rooted in India’s cultural ethos, has received a major boost through the PRASAD scheme. the PRASAD scheme was introduced to promote the integrated and sustainable development of pilgrimage destinations, offering a holistic religious tourism experience. Initially focused on the beautification of pilgrimage sites under the HRIDAY Scheme, PRASAD has since evolved to include heritage destinations. Recognizing the connection between pilgrimage and rural tourism, the scheme supports the growth of local jobs and infrastructure in rural areas near significant pilgrimage centres, benefiting both residents and tourists. Financial assistance is provided under the PRASAD and Swadesh Darshan programs to State Governments, Union Territories, and Central Agencies to enhance tourism infrastructure.
The scheme initially identified 12 cities for development based on their rich cultural and historical heritage, aiming to integrate and prioritize the development of these destinations for a complete religious and heritage tourism experience. This initiative focuses on rejuvenating pilgrimage sites with modern amenities while maintaining their spiritual sanctity. Improved infrastructure, connectivity, and facilities are driving the demand for boutique and luxury accommodations near religious destinations.
“Religious tourism is no longer confined to traditional perceptions. Today’s travellers seek holistic experiences, combining spirituality with comfort and cultural exploration. This is where hoteliers can truly make a difference. There is an evolving preference of tourists, who now value curated and sustainable experiences alongside spiritual journeys,” says Nanda.
Tax Benefits and Incentives for Hospitality Investments
Government initiatives across India are driving significant growth in the hospitality sector by promoting tourism and boosting investments. Programs like Swadesh Darshan and interest-free travel loans have increased domestic tourism, while Prime Minister Modi’s focus on regions like Lakshadweep has enhanced accessibility and sustainability. States like Uttar Pradesh, Uttarakhand, Rajasthan, Maharashtra, Himachal Pradesh, and Karnataka have introduced tailored policies, offering subsidies, tax exemptions, and infrastructure improvements. For example, Uttarakhand allocated ₹494.45 crore to improve connectivity to Jim Corbett National Park, while Uttar Pradesh offers up to 15% capital investment subsidies for hotels with more than 50 rooms. However, challenges remain, including high GST rates of up to 28% and regulatory complexities. Despite these hurdles, the government’s efforts to improve infrastructure and incentivize investments hold promise for a thriving and sustainable hospitality industry.
While the hospitality industry appreciates the government’s significant investments in infrastructure, such as highways and airports, it requires more targeted reforms to thrive globally. According to Nanda, “Tax incentives are a catalyst for growth. They encourage hoteliers to explore untapped markets and develop infrastructure that caters to a diverse audience and thrive for more.”
Promoting Public-Private Partnerships (PPP)
Public-private partnerships have emerged as a powerful tool to fast-track infrastructure development in the hospitality sector. Through PPP models, projects such as airports, roads, convention centres, and tourism hubs can be completed more efficiently and innovatively. These collaborations between a government agency and a private-sector company pool resources, expertise, and vision from both sectors to create an infrastructure that supports tourism growth.
Sanjeev Nanda on the Importance of Collaboration
Sanjeev Nanda explains, “PPP models are a game-changer for the hospitality industry. They not only address logistical challenges but also foster innovation through shared vision and resources. Collaboration is the key to unlocking the full potential of Indian tourism. PPP projects can bridge gaps in connectivity and amenities, making remote and emerging destinations more accessible to travellers.”
Examples of successful PPP ventures include modernized airports and enhanced road connectivity, which significantly influence travellers’ experiences. The inclusion of private players in such projects ensures efficiency and innovation, two elements critical to the hospitality industry.
Regional Growth and the Rise of Tier II and III Cities
India’s hospitality industry is no longer limited to its metropolitan centres. With the government’s emphasis on developing infrastructure in Tier II and III cities, these emerging regions are becoming hotspots for tourism and hospitality investments. Affordable accommodations, lifestyle hotels, and boutique properties tailored to local culture and preferences are transforming the tourism experience in these cities.
“Emerging cities are the future of Indian hospitality,” notes Nanda. “Boutique and lifestyle hotels that cater to local culture and preferences will thrive in these markets, offering unique experiences to travellers. The rise in disposable incomes and the expanding middle class are key drivers of domestic tourism, significantly contributing to the growth of the hospitality market in smaller cities.”
The push toward regional development not only creates new opportunities for the hospitality industry but also addresses the broader goal of inclusive growth by promoting economic activity in smaller towns and rural areas.
Sustainability and Eco-Tourism Initiatives
The growing focus on eco-tourism and sustainable practices is shaping the hospitality industry in India. Government policies now encourage eco-friendly development through subsidies for green hotels, energy-efficient projects, and incentives for properties that obtain green certifications.
Sanjeev Nanda Advocates for Sustainable Hospitality Practices
“Green certifications and eco-friendly operations are no longer optional; they are a necessity. Sustainability aligns perfectly with the values of today’s travellers, and government incentives make it easier for hoteliers to transition towards greener practices,” Sanjeev Nanda remarks. His advocacy for sustainable practices reflects a global shift in consumer preferences toward ethical and environmentally conscious tourism.
Adopting sustainability measures not only benefits the environment but also enhances the brand value of hospitality establishments. Properties that align with eco-tourism policies often attract a more loyal and socially responsible customer base, creating a win-win scenario for businesses and the planet.
Challenges in Policy Implementation
Despite the promise of government initiatives, challenges such as regulatory delays, land acquisition issues, and infrastructure gaps persist. These hurdles often slow down the implementation of policies and projects, creating roadblocks for the hospitality sector. Simplifying visa processes and establishing visa-free agreements with friendly nations could elevate India’s status as a global transit hub. Streamlining GST and consolidating tax structures would reduce operational complexities while modernizing outdated regulations would better align the sector with contemporary business needs. Additionally, implementing a fast-track system for dispute resolution could ensure smoother operations. These reforms, alongside infrastructure development, are essential to building a competitive and sustainable hospitality industry.
Sanjeev Nanda acknowledges these challenges but remains optimistic. “Challenges are inevitable, but they also drive us to think creatively. By working closely with policymakers and stakeholders, we can overcome obstacles and create a resilient hospitality ecosystem,” states Nanda. “For instance, land acquisition for hospitality projects often involves complex negotiations and bureaucratic hurdles. Industry leaders should advocate for streamlined processes and clear guidelines to make such projects more feasible,” he adds.
Future Outlook: The Role of Policy in Sustaining Growth
As India’s hospitality industry evolves, government policies will continue to play a pivotal role in shaping its future. Key trends such as digitalization, regional tourism, and sustainability are expected to redefine the sector. Initiatives like the digitization of travel processes and the promotion of lesser-known destinations are opening new avenues for growth.
Sanjeev Nanda’s Vision for Policy-Driven Hospitality Growth
India’s hospitality sector is on the brink of unprecedented growth, fuelled by policy-driven initiatives. By embracing digital transformation and sustainability, we can redefine the industry and set global benchmarks.
“Policies promoting regional tourism will make India a year-round travel destination, reducing the dependency on seasonal footfall. There is a requirement for continuous engagement between the government and industry players to refine policies and address emerging challenges. A holistic approach is required where technology, sustainability, and inclusivity converge to create a vibrant hospitality ecosystem,” Nanda highlights.
The hospitality industry in India is undergoing a transformation, driven by government policies that promote innovation, sustainability, and regional inclusivity. Initiatives like Swadesh Darshan 2.0, PRASAD, and eco-tourism subsidies are paving the way for a more diverse and dynamic tourism landscape. The synergy between government policies and the hospitality sector is a powerful engine for growth. By proactively engaging with these initiatives, the hospitality ecosystem can be built that is not only profitable but also sustainable and inclusive.
Through collaboration, creativity, and a shared commitment to progress, the hospitality industry in India is poised to achieve unprecedented growth, enriching the travel experiences of millions and contributing significantly to the nation’s economy.
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