The Indian hospitality and travel sector has seen some relief in Budget 2022 presented by Finance Minister Nirmala Sitharaman.
The FM announced an increase in the Emergency Credit Line Guarantee Scheme (ECLGS) overall, with a special focus on hospitality and related services, especially micro and small enterprises (MSMEs)
“The hospitality and MSME segments are yet to reach the pre-pandemic level of business,” Sitharaman noted.
“Hence, ECLGS will be extended upto March 2023. Its guarantee cover will be expanded by ₹50,000 crore to a total cover of ₹5 lakh crore,” she added. The hospitality industry will get a special focus, she said
This is a huge relief for the ailing sector hit by the covid-19 pandemic.
The Finance Minister also said there will be a special focus on the development of infrastructure in the North-East. This is likely to boost tourism and employment in the region.
Sitharaman also said e-passports will be rolled out to make it easy for people to plan overseas travel. These will be embedded with chips.