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New Arunachal Pradesh Tourism Policy 2025 Offers 30% Capital Subsidy and 7-Year Tax Exemption

Policy Update January 28, 2025 Business Standard Anil Kapoor

The Arunachal Pradesh State Cabinet has approved the Tourism Policy 2025, offering a suite of investor incentives designed to position the state as a premier tourism destination in South Asia. The policy, effective from April 1, 2025, introduces capital subsidies of up to 30% for qualifying projects, complete exemption from state taxes for the first 7 years of operations, and preferential land allotment in designated tourism zones.

The policy identifies 12 priority tourism circuits including Tawang Heritage Circuit, Ziro Cultural Circuit, and Mechuka-Aalo Adventure Corridor. Special provisions have been made for eco-tourism resorts, homestay clusters, and adventure tourism infrastructure. Projects employing more than 70% local workforce are eligible for an additional 5% capital subsidy.

Tourism Minister Nakap Nalo stated that the policy aims to increase the state's annual tourist footfall from 8 lakh to 25 lakh by 2030. "We have learned from the best global practices. The policy balances growth with environmental conservation -- every project must meet our sustainability benchmarks before receiving approval," the minister said at the press conference.

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