Travel & Tourism Startup Grants and Funding Programs in India — October 2026

As of October 2026, the Indian Travel & Tourism sector has seven active funding opportunities available to startups. These programs include government grants, incubation support, seed funds, and innovation challenges. The funding landscape for Indian Travel & Tourism startups is primarily driven by central and state government initiatives, supplemented by institutional incubation programs and targeted competitions. These schemes aim to stimulate economic growth, enhance infrastructure, and promote innovation across diverse tourism segments.

Active Travel & Tourism Grants and Programs

State Tourism Policy Incentives (Government of India)

The State Tourism Policy Incentives are predominantly state-driven initiatives. These programs offer a range of benefits to encourage investment and development within the hospitality sector. Typical state-level benefits may include capital subsidies, often ranging from 15% to 30% of the project cost, and interest subvention on term loans, usually between 2% and 5%. Additional incentives frequently cover stamp-duty exemptions, electricity-duty concessions, and GST-linked benefits.

These policies also often facilitate land allotment at concessional rates. Such support is available for a variety of tourism-related projects, including hotels, resorts, homestays, wellness centres, adventure tourism facilities, and MICE (Meetings, Incentives, Conferences, and Exhibitions) infrastructure. Eligibility and specific incentives are determined by individual state tourism policies.

Marketing Development Assistance Scheme (Ministry of Tourism)

The Marketing Development Assistance (MDA) Scheme, administered by the Ministry of Tourism, Government of India, operates within the broader Overseas Promotion & Publicity (OPP) framework. This initiative provides financial support to approved tourism service providers, as well as State Government and Union Territory tourism administrations. The scheme offers assistance of up to ₹3,50,000.

The primary goal of the MDA Scheme is to strengthen India's global tourism presence by enabling stakeholders to market India as a premier tourism destination in key international markets. This financial assistance seeks to elevate the global visibility of the "Incredible India" brand, aiming to increase foreign tourist arrivals.

Chief Minister’s Startup/innovation Projects/new Industries (Startup Himachal)

The Chief Minister’s Startup/innovation Projects/new Industries Scheme, formulated by the Government of Himachal Pradesh, aims to support startups and innovative projects within the state. This initiative seeks to transform educated youth into job creators, cultivate entrepreneurship, generate self-employment, and facilitate overall industrial development in Himachal Pradesh.

The scheme outlines a range of incentives designed to enhance the success rate of entrepreneurial ventures across Himachal Pradesh. Beyond direct support, it also focuses on building a conducive ecosystem by establishing Incubation Centers within reputable host institutions across the state. These centers are tasked with capacity building and fostering innovation.

Raising and Accelerating MSME Performance (RAMP) Interventions (DNH&DD)

The "Raising and Accelerating MSME Performance (RAMP)" scheme, supported by the World Bank, is a Government of India initiative designed to enhance the capabilities of Micro, Small, and Medium Enterprises. Within this framework, "Intervention 4: Reimbursement of GST amount for promoting destination wedding" has been introduced by the Department of Industries, Union Territory of Dadra & Nagar Haveli and Daman & Diu.

This targeted intervention invigorates the tourism sector within the Union Territory by offering reimbursement for GST amounts incurred in promoting destination weddings. The scheme provides support of up to ₹5,00,000, encouraging businesses to boost tourism activities and generate economic growth in the region.

Grants Provisioned under Uttarakhand Tourism Policy, 2023 (Department of Tourism, Government of Uttarakhand)

The Grants Provisioned under Uttarakhand Tourism Policy, 2023 is an initiative by the Department of Tourism, Government of Uttarakhand. This policy encourages sustainable tourism development across the state by promoting private and institutional investment in the tourism sector.

The policy offers financial incentives and subsidies to foster economic growth, create employment opportunities, and enhance tourism infrastructure in Uttarakhand. It outlines various grant categories and incentive structures, tailored for different types of tourism projects, including housing developments and the creation of unique tourism products and services.

HP Tourism Excellence Awards (Startup Himachal)

The HP Tourism Excellence Awards, established under the Tourism Policy 2019 by the Government of Himachal Pradesh, recognize contributions within the state's tourism sector. These annual awards encourage innovation, quality, and sustainable practices among entrepreneurs, startups, and established tourism assets. Award amounts can be up to ₹1,00,000.

This program offers visibility and acknowledgement, promoting best practices across various categories. It seeks to honor those demonstrating performance, initiatives, and efforts in enhancing the tourism experience and infrastructure in Himachal Pradesh. The awards cover a broad spectrum of contributions, from individual entrepreneurial success to innovative tourism ventures.

Tamil Nadu Tourism Innovation Challenge 2026 (StartupTN)

The Tamil Nadu Tourism Innovation Challenge 2026 is an initiative by Tamil Nadu Tourism and StartupTN to foster innovation in the state's tourism sector. Tamil Nadu is a significant tourism destination, welcoming millions of domestic and foreign visitors annually, and this challenge aims to leverage that potential.

The core purpose of the challenge is to reimagine and enhance how the world experiences Tamil Nadu, developing a future-ready tourism ecosystem. It targets boosting tourism-focused startups with innovative products and services, solving real sector challenges using technology and new business models, and attracting new talent into the tourism economy. The deadline for this competition is 15 October 2026.

Before Applying

Careful consideration of program eligibility is necessary. Many programs, such as the Chief Minister’s Startup/innovation Projects/new Industries and HP Tourism Excellence Awards, are specifically for ventures operating within Himachal Pradesh. Similarly, the RAMP Interventions for Destination Weddings are tailored for businesses in Dadra and Nagar Haveli and Daman and Diu, and the Uttarakhand Tourism Policy, 2023 targets projects within Uttarakhand. The Tamil Nadu Tourism Innovation Challenge 2026 is open to startups focused on Tamil Nadu's tourism sector.

While most programs listed, including the State Tourism Policy Incentives and the Marketing Development Assistance Scheme, operate on a rolling or continuously open basis, the Tamil Nadu Tourism Innovation Challenge 2026 has a firm deadline of 15 October 2026. Applicants for the latter should prioritize their submissions to meet this cutoff.