India to offer 5 lakh free tourist visas

India will offer tourist visa, free of cost, to five lakh foreign tourists as part of efforts to boost the country's travel and tourism sector battered by the Covid-19 pandemic.

Once visa issuance is resumed, the first five lakh tourist visas will be issued free of charge and the benefit will be available only once per tourist, reports our New Delhi correspondent quoting Finance Minister Nirmala Sitharaman as saying.

The scheme will be applicable till March 31, 2022 or till 5,00,000 visas are issued, whichever is earlier, the minister told the media in New Delhi yesterday.

A total of 10.93 million foreign tourists visited India in 2019 and spent USD 30.098 billion on leisure and business, official estimates said.

The average daily stay for a foreign tourist in India is 21 days and the average daily spending by a tourist in India is around USD 34, they said.

The government also announced a new loan guarantee scheme for Covid-affected sectors under which working capital/personal loans will be provided to people in tourism sector to discharge liabilities and restart businesses impacted by the pandemic.

The scheme will cover 10,700 regional-level tourist guides recognised by the ministry of tourism and the state governments as also travel and tourism stakeholders recognised by the ministry.

Under the scheme, loans will be provided with 100 percent guarantee up to Rs one million to travel and tourism guides per travel agency and Rs one lakh for tourist guides licenced at regional or state level.

The requirement of processing charges, waiver of foreclosure/prepayment charges and additional collateral requirement have been waived for such loans, the ministry sources said.