Budget 2025: FM announces modified UDAN, major tourism push

Finance Minister Nirmala Sitharaman, presenting Union Budget 2025-26 in Parliament today, says the government will modify the UDAN scheme to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years.

"SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund 2 will be established as a blended finance facility; the ₹15,000 crore fund will aim for speedy completion of another one lakh dwelling units," the FM says in Parliament.

The government has also decided to launch a Maritime Development Fund with a corpus of ₹25,000 crore for long-term financing for the maritime industry.

Investment in Tourism

The FM says the country's top 50 tourist destination sites will be developed in partnership with states through a challenge mode.

"States will be given performance-linked incentives for effective destination management. MUDRA loans for homestays to be provided. Special focus will be put on destinations related to the life and times of Lord Buddha," says the FM.

She says the government will focus on "Medical Tourism" and "Heal in India" to promote partnerships with the private sector.