How travel, tourism has been ignored in Budget

The Budget seems to have missed out on the travel, tourism and hospitality industry. One of the biggest employers it could have greatly helped the economy if the industry was helped to bounce back and restore employment to the millions who lost their jobs. The Food and Beverage industry would have also felt the benefits of the growth of the HORECA trade.

Jyoti Mayal, President TAAI, stated that we expected much more than what was announced. However, we believe the Budget 2021 has focused more on spending to enable economic growth through infrastructure roads and financial remedies. Travel, tourism and hospitality was completely neglected.

With the Union Finance Budget just announced we had expected that the Government undertakes our suggestions for good governance and ease of doing business for our trade.

As we await the fine print, the direct taxes are not clear. Further disinvestment in AirIndia is still on the rocks and is expected to be completed this year. Clarity on the same is eagerly is awaited by us, the main stakeholder partner hereto. For Rail packages over the years this shall be an advantage since the Plan is to create a 'future-ready' Railway system by 2030. Passenger Logistics shall have an advantage in the circuits and infrastructure.

Jay Bhatia, Vice President TAAI stated Private Public participation has been set forth in a big way along with privatisation. We hope this shall include in Travel and Tourism trade too. We see that the revenue shall come from borrowings only.

"The tourism industry employs 75 million people directly or indirectly. Had Government offered some sops to the industry, 40-45 million jobs which are on the verge of extinction could be saved," said Subhash Goyal, Founder Chairman, STIC Travel Group.

Aravind Melligeri, Chairman, Aequs Inc., said "Notwithstanding constraints in the backdrop of Covid-19, this budget goes the distance to address the need for job creation and improving infrastructure. The 34.5 per cent increase in capital expenditure in FY21 on infrastructure, apart from the Rs 2 lakh crore allocation to States to spend more on it, is a welcome step. And the Rs 1.97 lakh crore allocation for Production Linked Incentives over the next five years is yet one more step towards AatmaNirbharBharat. The two put together will provide an impetus to domestic production, enable India to become a global manufacturing force by attracting more investments, cutting-edge technology; and create jobs and economies of scale. In the process India will become an integral part of the global supply chain system."

Commenting on The Aerospace and Defense sector in Indian, Ravikiran Pothukuchi, Director and Industry lead for Aerospace & Defense in India, Dassault Systemes, says "The Aerospace and Defense sector in India is at an inflection point, given the large scale modernization and indigenization programs being undertaken by the Government.

Companies in this sector have to cater to stakeholder expectations of lower costs, higher standards and increase capabilities along with growing program complexity. As systems become more complex to design, build and deliver, OEMs and suppliers need to accelerate innovation, drive efficiencies and move to the factory of the future to allow for greater agility on production rate."

The hospitality industry worth Rs 4,23,865 crore and which is expected to grow to Rs 5,99,784 crore by 2022-23 and as an industry that employs over 7 million jobs, was most affected by Covid. National Restaurant Association of India (NRAI) President Anurag Katriar said: "It was disappointing to see that no specific announcements were made for the restaurant industry as well as the overall hospitality and the tourism Sector in the just presented budget".