SASCI Tourism Investment India has emerged as a landmark initiative, reshaping the nation’s tourism landscape in 2025. With the Ministry of Tourism sanctioning 40 projects worth Rs. 3,295.76 crore across 23 states, this move reflects the government’s strong commitment to enhancing iconic tourist centres and promoting responsible, sustainable tourism. These projects are fully funded by the central government, forming part of the Special Assistance to States for Capital Investment (SASCI) scheme, a broader strategy to stimulate India’s economy through long-term infrastructure and development investments.
About SASCI
The Special Assistance to States for Capital Investment (SASCI) was launched in 2020–21 as a unique initiative to support states through interest-free loans for capital expenditure. Initially designed as an economic recovery measure in the aftermath of Covid-19, SASCI has since grown into a transformative tool for accelerating India’s development.
SASCI has a proven high multiplier effect: for every Rs. 1 invested, it generates nearly Rs. 3 in GDP. By expanding productive capacity, creating jobs, and driving infrastructure reforms, the scheme has helped states achieve both short-term recovery and long-term growth. Covering multiple sectors—ranging from industrial development and digital infrastructure to urban reforms and now tourism—SASCI has become a cornerstone of India’s growth strategy.
SASCI Tourism Investment India: First Focus on Tourism
Tourism was brought under SASCI for the first time in 2025. The government selected 40 projects worth Rs. 3,295.76 crore through a challenge method, using criteria such as:
- Connectivity and accessibility
- Existing tourism infrastructure and ecosystem
- Carrying capacity and sustainability metrics
- Anticipated local and global economic impact
The projects aim to transform India into a world-class tourism hub by attracting high-value domestic and foreign tourists. Beyond boosting footfall, SASCI-funded tourism projects are designed to:
- Increase per-capita spending by tourists
- Generate large-scale employment opportunities
- Support artisans, small businesses, and local communities
- Promote eco-friendly practices and responsible tourism
Capital Expenditure and Economic Impact
A defining feature of SASCI lies in its focus on capital expenditure (Capex). Unlike revenue expenditure, which covers day-to-day operational costs, Capex refers to long-term investments in physical assets such as infrastructure, technology, and energy projects.
For FY 2025–26, the Government of India has allocated Rs. 11.21 lakh crore for Capex, nearly 3.1% of GDP. This demonstrates the scale and seriousness of the government’s vision. Capex serves as a countercyclical fiscal tool, meaning it supports the economy during downturns while laying the foundation for future growth.
Through SASCI Tourism Investment India, Capex is directed toward building modern tourist infrastructure—airports, roads, hospitality centres, cultural hubs, and heritage site conservation. These investments not only improve tourist experiences but also generate long-term economic benefits by encouraging private investment and reducing public liabilities.
Broader Reforms and Progress under SASCI
SASCI’s scale has grown dramatically, from Rs. 12,000 crore in 2020–21 to Rs. 1,50,000 crore in 2024–25. This expansion reflects the central government’s trust in states’ capacity to drive reforms.
Key reforms under SASCI include:
- Urban reforms: updating building bylaws, optimising land use, and increasing Floor Area Ratio in commercial hubs.
- Rural land digitisation: 90% of cadastral maps are geo-referenced, and nearly 30% of land parcels now have Unique Land Parcel Identification Numbers (ULPIN).
- Transparency in land records: Digitisation of Records of Rights has reached 91%, reducing disputes and improving access to credit.
These reforms complement SASCI Tourism Investment India by ensuring that infrastructure projects—especially those linked to tourism—rest on strong governance and transparent frameworks.
Role of States in SASCI Tourism Investment India
While the central government provides full financial support, states carry the responsibility for operation and maintenance (O&M) of the completed projects. This ensures strong local participation, accountability, and sustainable upkeep of assets.
State-level involvement also ensures that projects align with local priorities, traditions, and cultures. From rural artisans and small entrepreneurs to hospitality workers and transport providers, the ripple effects of SASCI-funded tourism projects will be widely felt. Local employment generation and inclusive growth remain core goals of this framework.
Conclusion: Transforming India’s Tourism Landscape
SASCI Tourism Investment India is more than just a funding initiative—it is a strategic blueprint for transforming India’s tourism sector into a driver of economic growth and cultural pride. By fully funding large-scale projects while holding states accountable for long-term sustainability, SASCI strikes a balance between national vision and local execution.
With projects spanning 23 states, SASCI is not only strengthening India’s tourism infrastructure but also ensuring that the benefits reach local communities, artisans, and small businesses. As India positions itself as a global tourism hub, SASCI Tourism Investment India will remain a cornerstone of this transformation—stimulating growth, fostering inclusivity, and showcasing India’s cultural and natural heritage to the world.
