As India’s domestic and international tourism grows, government support is helping homestay business and hosts—especially in rural and tribal areas—thrive. These yojanas (schemes) provide crucial financial aid, training, and formal recognition. Here’s why these schemes are so valuable, along with a deep dive into the 10 best opportunities for aspiring homestay hosts, including eligibility, benefits, and concrete results.
Table of Contents
1. Deendayal Upadhyaya Homestay Scheme – Uttarakhand
Overview: Launched under the Deendayal Upadhyaya Grah Awas Yojna, Uttarakhand offers modernization and subsidy help to enhance the homestay model.
Key Features:
- Up to ₹10 lakh subsidy for hill home conversions; ₹7.5 lakh for plains.
- Interest subsidy of ₹1.5 lakh/year for five years.
- Tax exemption on SGST up to ₹1.5 lakh for five years.
- Hospitality training, restroom upgrades, furniture support.
Impact:
- 3,600 registrations; strong uptake in Uttarakhand’s hill districts.
- Aims to prevent rural migration by generating local income.
Best For: Rural Uttarakhand entrepreneurs with usable land and traditional homes.
2. Uttar Pradesh Bed & Breakfast & Homestay Policy 2025
Overview: Aims to ease accommodation shortages at pilgrimage and tourist sites .
Key Features:
- Registration for up to 6 rooms (max 12 beds).
- Rural registration fees: ₹500–750; urban: ₹2,000.
- NOC-based local registration.
- Financial incentives and compliance support.
Impact:
- Will expand lodging options at religious hotspots.
- Empowers locals with new income sources in Yogi Adityanath’s state plan.
Best For: Rural and urban homeowners near temples, Sufi shrines, or heritage sites.
3. Madhya Pradesh Responsible Tourism Homestay Schemes
Overview: The Responsible Tourism Mission promotes village-based experiences via digital booking integration.
Key Features:
- Multiple categories: Homestay, B&B, Gramstay, Farm stay.
- Formal registration and regulation, hospitality training.
- Market promotion and SME involvement.
Impact:
- 241 new homestays inaugurated in one event.
- A 526% tourism growth since 2020.
- 10,000 women trained and empowered.
Best For: Villages near national parks, heritage, or pilgrimage circuits in MP.
4. Assam Amar Alohi Homestay Scheme
Overview: Aims to establish new rural homestays and upgrade existing ones .
Key Features:
- For new and existing rural units.
- Free training in hospitality, bookkeeping, marketing.
- Subsidies for establishment costs (up to 80%).
- Official registration, promotional inclusion, and homestay branding.
Impact:
- Supports organic farming and craft production.
- Attracts tourists to Kaziranga, Majuli, and tea belt.
Best For: Rural entrepreneurs near Assam’s rivers, tea gardens, and wildlife areas.
5. Meghalaya Homestay & Resort Scheme
Overview: Encourages eco-lodges and resorts in Shillong and surrounding zones.
Key Features:
- 35% subsidy of capex up to ₹16 lakh.
- EMI support ₹6,000/month over 7 years.
- Includes homestays (4 rooms minimum) and small resorts.
- One LTC-friendly entrepreneur contribution (2%).
Impact:
- Projected 500 homestays and 5,000 direct jobs in 5 years.
- Strengthens eco-tourism infrastructure.
Best For: Residents near Shillong, Cherrapunji, and living root bridge circuits.
6. Arunachal Pradesh Tourism Homestay Schemes
Overview: Includes Chief Minister’s Paryatan Vikas Yojana and Paryatan Shiksha Yojana, managed with ACT NGO support.
Key Features:
- Homestay training, guide/driver certification.
- Infrastructure funding and financial support.
- Community-led tourism initiatives.
Impact:
- Offers village chances for lasting livelihoods.
- Conserves culture and nature through inclusion.
Best For: Village hosts in Tawang, Ziro, Itanagar, and eco-tourism zones.
7. Punjab Bed‑&‑Breakfast / Homestay Scheme
Overview: Introduces formal registration under tourism department.
Key Features:
- B&B (includes breakfast) or homestay (stay-only).
- Registration fees: ₹5,000 (Gold), ₹3,000 (Silver).
- Certification, branding, ongoing promotional support.
Impact:
- Increases tourist accommodation at heritage and rural circuits.
Best For: City houses near Amritsar/Chandigarh, or rural artisanal villages.
8. PM Surya Ghar Muft Bijli Yojana
Overview: Rural rooftop solar subsidy for free electricity.
Key Features:
- 30–78 kW solar systems with ₹30,000–₹78,000 subsidies for grid-tied homes.
- Specifically beneficial for those with 300+ units/month usage.
Impact:
- Cuts operating costs for homestays significantly.
- Environmentally friendly and energy-independent stays.
Best For: Homestays with rooftop space in sunny regions (Rajasthan, MP, Tamil Nadu).
9. PM Vishwakarma Scheme
Overview: Supports artisans with skills, toolkits, training, and funding .
Key Features:
- Daily training stipends (~₹500).
- ₹15,000 e-voucher for tools + marketing assistance.
- 5% interest MSME loans and support.
Impact:
- Crafts can be showcased to guests—e.g., pottery, weaving, bamboo.
- Provides authentic experience and upholds local heritage.
Best For: Homestays run by artisan families (Gujarat, Odisha, NE India).
10. PM Kaushal Vikas Yojana (PMKVY) & DDU‑GKY
Overview: Provides vocational training to rural youth in hospitality skills.
Key Features:
- Free skill training with certification in hospitality, languages, digital skills.
- Strengthens host capacity in check-in, guest handling, hygiene.
Impact:
- Encourages local youth to find employment or support homestays.
- Ensures service quality and repeat bookings.
Best For: Homestays across states needing multilingual, trained staff support.
Comparison of Yoajan for Homestay Business
| Scheme | Region(s) | Subsidy/Support Highlights |
|---|---|---|
| Uttarakhand Homestay Scheme | Uttarakhand | ₹10 lakh subsidy, ₹1.5 lakh interest relief, training |
| UP B&B/Homestay Policy | Uttar Pradesh | Local registration, financial incentives |
| MP Responsible Tourism Mission | Madhya Pradesh | Formal listing, training, 241+ homestays |
| Assam Amar Alohi | Assam | 80% capex subsidy, training, branding |
| Meghalaya Homestay & Resort | Meghalaya | Subsidy 35% ₹16 lakh, EMI support |
| Arunachal Tourism Schemes | Arunachal Pradesh | Training, guide certification, infrastructure support |
| Punjab B&B/Homestay Scheme | Punjab | Registration, branding, marketing |
| PM Surya Ghar Yojana | Pan‑India (rooftops) | Solar subsidy ₹30k–78k for domestic setups |
| PM Vishwakarma Scheme | Pan‑India (artisans) | Toolkits ₹15k, marketing, skill stipend |
| PMKVY + DDU-GKY | Pan‑India | Vocational training in hospitality, multilingual skills |
How to Choose the Right Scheme 🎯
- Match Location & Asset
- Uttarakhand and Meghalaya: hill stays
- Assam/Arunachal: forest/eco stays
- UP/MP: cultural or pilgrimage tourism
- Verify Room Count
- Some schemes limit to 4–6 rooms (Meghalaya, Uttar Pradesh).
- Funding Structure
- Check subsidy capex vs required counterpart.
- Note interest support timelines.
- Register & Comply
- Be aware of local approvals (DM, SP, district tourism).
- Understand inspection, branding, and marketing details.
- Upgrade Offers
- Host training, eco-certification, listing platforms.
Tips to Maximize Benefits
- Pair schemes: e.g., Uttarakhand subsidy + Surya Ghar solar + PMKVY staff training.
- Use scheme subsidies to build solar lights, organic gardens, train staff.
- Highlight scheme-backed credentials to guests—adds trust and trustworthiness.
- Maintain up-to-date financial and NOC records—they streamline inspections.
- Share success stories (e.g., Uttarakhand preventing migration, Meghalaya’s ₹60k/month incomes) to inspire others.
Real-World Impact
- Uttarakhand transformed over 3,600 homes with targeted subsidies.
- Madhya Pradesh saw a 526% tourism spike and uplift for 10,000 women.
- Meghalaya homestays projected ₹60,000 monthly income with just ₹6,000 EMI .
Conclusion
India’s homestay support ecosystem is robust—with schemes aimed at rural livelihood, cultural preservation, eco-tourism, and low-cost sustainability. Whether you’re in the hills of Uttarakhand, the forests of Assam, or heritage towns in UP/MP, there’s a tailored scheme to empower your journey.
By strategically combining financial aid, infrastructure upgrades, solar power, artisan showcasing, and skill training, you can build a thriving homestay business—not only profitable, but sustainable and culturally resonant.