Budget 2022-23: Extension of ECLGS, e-passports to shore up tourism sector

Pre-budget expectations in the travel sector, included financial aid, exemption of e-visa charge, standardization of taxes levied on restaurants in starred hotel and standalone ones, and incentives to boost travel.

Finance Minister Nirmala Sitharaman said, "The hospitality and related services especially for MSMEs are yet to regain pre-pandemic level. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to total cover of Rs five lakh crore."

"Since the ECGLS worked well for the MSMEs we decided to extend it to hospitality and contact intensive sectors," she said.

To ease international travelling procedures, e-passports will become reality in this fiscal year. They are meant to smoothen passage of travellers globally through imigration posts.

The personal information of the passport holder will be digitally signed and encoded in a chip that will be embedded inside the passport.

As a major boost to the pandemic hit travel industry, Sitharaman highlighted the PM Gati Shakti National Master Plan.

The plan will prioritize roads, railways, airports, ports, mass transport, waterways and logistics infrastructure.

In this regard, the four focus areas are planning, financing through innovative ways and use of technology plus fast paced implementation to allow brisk  movement of people and goods in India.

Travel agency company Yatra.com said, “We congratulate and welcome the slew of measures announced by Finance Minister Nirmala Sitharaman and the government on the pragmatic and focused Budget 2022-23.

"PM Gati Shakti, a transformative digital approach for economic growth, will be driven by seven engines including roads, railways, airports, among others, and a collaborative effort of 16 ministries and we are optimistic that it will lead to sustainable development.

"The extension of ECLGS services, as well as an increased cover for the hospitality sector, will definitely bring in the much-required relief. Moreover, the rollout of e-passports and the National Ropeways Development Programme will be beneficial for the tourism sector as well."

The Indian online travel agency enterprise remains optimistic that the industry will continue to see buoyant growth driving overall economic growth in the country.

Aloke Bajpai, Group CEO & Co-founder of ixigo, said, “International travel is likely to recover soon despite the progress being slowed by the current variant. The introduction of innovative initiatives like e-passports will boost security and will enhance the convenience of international travelers by cutting down long queues at immigration counters.

"This will help support a faster revival of international travel in a pandemic-driven environment. Extension of ECLGS will also provide additional support to the hospitality industry which has borne the maximum brunt of the pandemic. The current budget’s focus on modernizing infrastructure and expansion of highways under PM Gati Shakti will give impetus to intercity mobility by connecting major economic hubs and saving travel time for people.”