SASCI Boosts India’s Tourism Capital Investment
India’s tourism sector received a major boost in 2025 with the implementation of the Special Assistance to States for Capital Investment (SASCI) scheme. The Ministry of Tourism sanctioned 40 projects worth Rs. 3295.76 crore to develop iconic tourist centres across 23 states. These projects are fully funded by the central government and aim to enhance the end-to-end tourist experience while promoting responsible tourism. SASCI forms part of a broader government initiative to stimulate economic growth through capital expenditure.
About SASCI
Launched in 2020-21, SASCI was designed to support states with interest-free loans for capital expenditure. The scheme targets economic recovery post-Covid-19 by increasing productive capacity and creating jobs. It has a high multiplier effect, generating Rs 3 in GDP for every Rs 1 invested. SASCI covers multiple sectors including urban reforms, industrial development, digital infrastructure, and tourism.
Tourism Development under SASCI
Tourism was included for the first time under SASCI in 2025. The government selected 40 projects through a challenge method based on criteria such as connectivity, existing tourism ecosystem, carrying capacity, and expected impact. The projects aim to attract high-value domestic and foreign tourists, increase tourism spending, create employment, and encourage sustainability. While funding is provided centrally, states are responsible for operation and maintenance.
Capital Expenditure and Economic Impact
Capital expenditure (Capex) refers to long-term investments in physical assets like infrastructure and technology. The Government of India allocated Rs 11.21 lakh crore for Capex in FY 2025-26, about 3.1% of GDP. Capex acts as a countercyclical fiscal tool, stabilising the economy during downturns and supporting future revenue growth. It also encourages private investment and helps reduce public liabilities.
Broader Reforms and Progress under SASCI
SASCI’s scale expanded dramatically from Rs 12,000 crore in 2020-21 to Rs 1,50,000 crore in 2024-25. States implemented reforms such as updating building bylaws, optimising land use, and increasing Floor Area Ratio in commercial zones. Rural land digitisation progressed with 90% of cadastral maps geo-referenced and 30% of land parcels assigned Unique Land Parcel Identification Numbers (ULPIN). Digitisation of Records of Rights reached 91%, improving transparency and reducing disputes. These reforms aim to boost manufacturing capacity, streamline credit access, and enhance economic growth.
Role of States
While the central government provides full funding for the projects, states bear the responsibility for their operation and maintenance. This ensures local involvement and accountability. The projects are expected to generate local employment and benefit artisans and communities, thereby supporting inclusive growth.
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