Developments on the MDA Scheme and Potential Impact on India’s Tourism Sector

Union Culture and Tourism Minister Gajendra Shekhawat has announced a review of the Marketing Development Assistance (MDA) scheme, a program designed to financially support tourism service providers (TSPs) such as tour operators and hotels. The intention behind this review is to ensure that the scheme aligns with the ever-evolving demands of the tourism industry.

The MDA Scheme: An Overview

The Marketing Development Assistance scheme has been a crucial resource for the tourism sector in India. However, the scheme has remained inactive for almost five years, creating concerns among tourism stakeholders. The assistance was aimed at promoting Incredible India in overseas markets, but it has become increasingly clear that the needs of the industry have shifted during this period.

According to Shekhawat, “The scheme is under review to align with the evolving requirements of the industry.” This statement was made during a recent discussion in the Rajya Sabha, highlighting the government’s recognition of the necessity for the MDA scheme to adapt and address the challenges faced by TSPs.

Impact of the MDA on the Sector

For many tourism competitors who benefited from financial assistance under the MDA in the past, the present scenario poses significant challenges. Stakeholders relied on the aid to help cover travel expenses for participating in roadshows, sales missions, and other marketing efforts. With the scheme on hold, many tour operators may struggle to compete on an international stage.

A prominent inbound tourism operator pointed out, “We received the last MDA in 2019, and since then, it’s been under review.” With the Indian Rupee’s depreciation against the US Dollar and the absence of MDA assistance, the prospect of participating in overseas marketing events becomes uncertain.

The Chalo India Campaign

In a separate discussion, Shekhawat provided insights into the ‘Chalo India Global Diaspora campaign.’ The initiative aims to engage the Indian diaspora as ambassadors for tourism, encouraging their international friends to visit India. However, as of now, only 30 e-tourist visas have been issued under this campaign.

Statistics of India’s Inbound Tourism

Recent statistics reveal a concerning trend in India’s international inbound tourism. In the first quarter of 2025, there was a 10% drop in international visitors compared to the same period in the previous year. The numbers fell from 3.26 million total visitors in Q1 2024 to just 2.61 million in Q1 2025. This drop is striking, especially considering that globally, international travel has rebounded and surpassed pre-pandemic levels.

Table: International Visitor Statistics for India

In comparison to pre-pandemic numbers, these figures indicate a profound decline. Notably, inbound visitor numbers in Q1 2025 were 17% lower than those recorded in Q1 2019.

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