The MICE sector significantly contributes to tourism by generating substantial revenue through large group events like meetings, incentives, conferences, and exhibitions, boosting local economies by creating jobs, promoting destinations globally, and often filling off-peak travel periods with high-spending business travellers, leading to increased hotel occupancy and demand for related services like transportation and catering. India is currently ranked at 28th position in the International Congress Convention association (ICCA) rankings. The union budget announced on 1st of February 2025 lays emphasis on the tourism and infrastructure sector paving the way for MICE industry of the country. Following are the key initiatives announced by the government which will further help to improve the position of India in the MICE sector:
Significant initiatives for the Tourism and Infrastructure Industry:
- The budget for Tourism and Infrastructure has been significantly increased to 2541.06 Crores. Out of this, budget for Tourism Infrastructure is placed at 2230.03 crores. a part of this allocated budget will be used in building convention centres, exhibition halls and transport facilities.
- Top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode. Land for building key infrastructure will have to be provided by states. Hotels in those destinations will be included in the infrastructure HML. This will boost the hospitality industry and will fuel the MICE events in future.
- The Government will be organizing intensive skill-development programmes for the youths including in Institutes of Hospitality Management. n The states will be focusing on effective destination management including tourist amenities, cleanliness, and marketing efforts.
Improving ease of travel and connectivity to tourists:
- The Government will be introducing streamlined e-visa facilities along with visa-fee waivers for certain tourist groups to attract visitors. Through this, different destinations in India will be easily accessible by international organisers, exhibitors, visitors.
- Medical Tourism and Heal in India will be promoted in partnership with the private sector along with capacity building and easier visa norms.
- UDAN scheme to enhance regional connectivity to 120 new destinations. This will further boost last mile connectivity and tourism to lesser known destinations. The UDAN scheme, or ude Desh ka aam Naagrik, is a government program that aims to make air travel more accessible in India. The scheme connects small and medium cities to larger cities through air service. under the UDAN scheme, the airfare for a one-hour journey by a ‘fixed wing aircraft’ or half an hour’s journey by a helicopter for about 500 km, has been fixed at Rs.2500/-.
These measures will enhance skill development, employment opportunities and infrastructure development. Effective destination management, improved connectivity, streamlined visa processes along with free visas will encourage increased tourist footfalls. The focus on Medical Tourism and Heal in India will also position India as leading destination for medical tourism and wellness. This will also create an environment for the industry relevant trade shows.
Speedy approval of merger of companies:
Foreign investors and companies seeking acquisitions in India have often faced prolonged approval timelines, sometimes stretching over years. Even within India, domestic mergers, demergers, and restructurings have encountered delays, underscoring the need for predictable timelines and a more efficient approval mechanism. To address these challenges, procedures for speedy approval of company mergers will be rationalized.
The scope for fast-track mergers will also be widened and the process will be made simpler. Through this we can expect International Collaboration in MICE sector of India.
PM Gati Shakti data to be made available for private sector:
- The government will make PM Gati Shakti data accessible to the private sector, opening doors for improved collaboration and efficiency in infrastructure projects. by providing real-time data, the initiative enables businesses to make more informed decisions, enhancing the efficiency and cost-effectiveness of logistics, transport, and manufacturing activities.
Announcement of National Manufacturing Mission:
- FM Nirmala Sitharaman announced “National Manufacturing Mission” to cover small, medium and large industries for furthering “Make in India”.
- The government also allocated ₹20,000 crore to flagship rooftop solar initiative (PM Surya Ghar Muft Bijli Yojana), reflecting a robust commitment to sustainable energy and environmental stewardship. This will be creating an environment for the industry specific trade shows.
With strategic policies, infrastructure upgrades, business friendly environment, India is set to become the Global MICE industry leader.