Major gaps in fund utilisation plague tourism schemes: Parliamentary standing committee

Under utilisation of funds by Ministry of Tourism.

Major tourism schemes, including Swadesh Darshan Scheme, PRASHAD (Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive) have been marred due to the gaps in fund utilisation, pointed out a Parliamentary standing committee in its recent report.

The committee on transport, tourism and culture has raised serious concerns over the chronic pattern of fund underutilization by the Ministry of Tourism.

The alarming statistics of only 33.4 percent utilisation of allocated funds in 2023-24 or Rs 801.81 crore out of Rs 2,400 crore and the continuation of this trend in 2024-25 of only Rs 396.82 crore utilised so far out of Rs 2,479.62 crore indicates deep-rooted systemic inefficiencies that require comprehensive structural reforms, the committee said.

"While the Ministry has attributed this underperformance to administrative bottlenecks, procedural delays, and coordination challenges with implementing agencies, the committee finds these explanations inadequate and reflective of entrenched operational weaknesses that demand immediate redressal," it added.

The considerable gaps between allocated funds and actual expenditure across major schemes include Swadesh Darshan for which only Rs 349.87 crore was used against the Revised Estimate (RE) of Rs 818 crore in 2023-24 and a mere Rs 133.91 crore against Rs 350 crore in 2024-25, resulting in a slowdown in the execution of projects.

The Committee also expressed serious concern over the sharp decline in allocation for the Restructured Overseas Promotion and Publicity Scheme, which has been reduced to an inadequate Rs 3.07 crore in 2025-26. "This drastic reduction threatens India's competitiveness in the global tourism market where competing destinations are substantially increasing their marketing investments."

India is still below 15-20 percent from 2020 in terms of foreign tourist arrivals (FTAs) coming to India while there are countries who have doubled, said Rajiv Mehra, President IATO (Indian Association of Tour Operators) and General Secretary, FAITH (Federation of Associations in Indian Tourism & Hospitality).

India recorded 9.52 million FTAs in 2023-24 as against 10.93 million in 2019-20, the committee in its report highlighted. Foreign Exchange Earnings (FEEs) dropped to Rs 231,927 crore in 2023-24 from Rs 216,467 crore in 2019-20.

He added that lack of fund utilisation has affected the overseas promotion segment the most.

"We (India) have stopped trade fairs and are not going to take part in trade fairs where other countries are spending millions on promotions. There is no visibility of India abroad. Tour operators who would operate 35-40 people are operating 10 people. For them, the volumes have come down and so has the business."

Significant challenges persist in establishing India as a premier global tourism destination, the committee said. Current data indicates that India ranks 39th in the global travel and tourism competitiveness index despite possessing extraordinary potential through its rich cultural heritage, diverse landscapes, and emerging global influence. "This positioning represents a substantial gap between India's tourism capabilities and its actual market performance," it added.

The committee has recommended establishing an Integrated Global Tourism Marketing Framework that leverages digital platforms and artificial intelligence to deliver personalized, targeted international campaigns. The Incredible India Digital Platform (IIDP) should be enhanced with AI-driven personalization capabilities, virtual tourism experiences, and seamless booking interfaces to provide potential international visitors with immersive pre-visit experiences of India's diverse destinations, it added.

It has also recommended allocation specifically for a comprehensive digital marketing campaign targeting key international source markets. The committee has suggested use of advanced technology to create personalized digital experiences, virtual tours of India's iconic destinations, interactive cultural experiences, and AI-powered trip planners that can be accessed through mobile applications and the Incredible India website.