The Hotel Association of India (HAI) has urged the government to prioritise sector-specific policy reforms to strengthen growth and resilience in the hospitality industry ahead of the Union Budget. Reiterating its long-standing demands, the industry body has once again sought infrastructure status and formal industry benefits for hotels.
Sharing the sector’s expectations, HAI President K B Kachru said the hotel industry warrants stronger policy support in view of its contribution to GDP, employment generation and foreign exchange earnings. Kachru, who is also Chairman, South Asia, Radisson Hotel Group, said targeted reforms could unlock the sector’s full potential.
“Policymakers should prioritise sector-specific reforms to drive growth and resilience in the hospitality sector,” Kachru said, adding that hotels deserve due recognition for their economic and employment impact.
According to HAI, granting harmonised infrastructure status to hotels would improve access to finance through longer loan tenures and lower interest rates, ease capital availability and reduce project delays arising from financial constraints. Kachru said such measures would help unlock fresh investment, boost job creation and support India’s broader vision of Aatmanirbhar Viksit Bharat.
The association also highlighted the need to improve ease of doing business by reducing the number, cost and complexity of approvals, no-objection certificates and regulatory clearances required to develop and operate hotels. HAI has called for the introduction of a single-window clearance mechanism, reinstatement of incentives linked to foreign exchange earnings, and higher depreciation rates for hotel assets.
Industry stakeholders believe that timely policy intervention in the upcoming Budget could play a critical role in accelerating investment and strengthening India’s hospitality ecosystem.
