Spending on conserving India's protected monuments has fallen after peaking in FY24, even as the government pushes to turn heritage sites into tourism hubs. This funding gap complicates the recovery of foreign tourist arrivals. Observers should track the Ministry of Tourism’s budget utilization and its ability to monetize existing sites effectively.
India’s commitment to maintaining its historical monuments is facing a financial disconnect. While the government is actively pushing to turn India into a global tourism hub, data shows that spending on the actual conservation of centrally protected monuments has declined after hitting a high in fiscal year 2024. This reduction in capital allocation comes at a time when the tourism sector is struggling to recover to pre-pandemic levels.
The Archaeological Survey of India (ASI) had reached a peak expenditure of ₹444 crore in FY24, but funding levels have trended downward since. This decline is visible across some of the country’s most iconic sites, which are essential for attracting both domestic and foreign visitors. For instance, funding for Agra, which houses the Taj Mahal, was reduced from ₹24 crore in FY24 to ₹16 crore. Similarly, allocations for the Ajanta and Ellora caves in Aurangabad dropped from ₹27 crore to ₹11 crore, while Hampi saw its funding fall from ₹12 crore to ₹9 crore over the same period.
This funding pullback highlights a broader challenge within the Ministry of Tourism regarding the execution of its plans. Although the Ministry has a significant budget of ₹2,541.06 crore for FY26 to support infrastructure and growth, it has historically struggled with slow budget utilization. In the past, the Ministry has often spent only a portion of its total allocated funds, which can delay the maintenance and development of key projects.
There is also a growing disconnect between visitor numbers and site revenue. While the footfall at 143 ASI-managed heritage sites rose by roughly 19% in FY24, ticket revenues actually fell by nearly 3% over the preceding five-year period. This suggests that while sites are attracting more visitors, the infrastructure is not effectively converting that foot traffic into sustainable income. Without consistent investment in conservation and visitor amenities, maintaining these sites as premium destinations becomes difficult.
Looking ahead, the government has announced plans in the 2026-27 budget to develop 15 iconic archaeological sites—such as Lothal, Dholavira, and Rakhigarhi—into experiential cultural destinations. The success of this strategy will depend on whether the Ministry can balance the creation of these new circuits with the upkeep of the 3,688 existing centrally protected monuments. Investors and stakeholders should watch whether the Ministry can improve its spending efficiency and whether new tourism initiatives lead to higher revenue per visitor.