Union Budget 2026: Resetting India’s Tourism & Hospitality Sector
Union Budget 2026: Resetting India’s Tourism & Hospitality Sector
The Union Budget 2026 marks a decisive moment for India’s travel and hospitality sector, signalling a shift from short-term demand stimulation to long-term ecosystem building. Rather than viewing tourism as a seasonal or destination-led activity, the Budget positions it as a strategic engine for employment, regional development and services-led economic growth. With focused investments in connectivity, skilling, digital destination platforms, heritage revitalisation and sustainable travel infrastructure, the government has outlined a framework that seeks to reshape how India is discovered, experienced and sustained as a global tourism destination.
What stands out is the Budget’s integrated approach. Infrastructure expansion through rail, road and last-mile connectivity is being aligned with human capital development, destination storytelling, and experience-led tourism across heritage, wellness, spiritual, medical and nature-based segments. This convergence reflects a growing recognition that tourism growth must be distributed beyond metros, anchored in local communities, and supported by quality, consistency and sustainability. As the industry digests the Budget’s implications, leaders across hospitality, travel technology, resorts and experience platforms are largely aligned in their view that while the intent is strong, execution will determine whether this vision translates into meaningful, long-term impact on India’s tourism economy.
Below, leaders from across the travel, tourism and hospitality ecosystem share their views on how Budget 2026 is expected to shape tourism demand, destination development, skilling, sustainability and the sector’s long-term growth.
Reema Diwan, Vice President – Design & Technical Services at Accor India & South Asia
We warmly welcome the Union Budget 2026-27 for its decisive push to strengthen tourism, hospitality and medical tourism as drivers of jobs and economic growth. The upgrade of the National Council for Hotel Management and Catering Technology into a National Institute of Hospitality is a major step towards building a stronger talent pipeline and closer collaboration between academia, industry and government.
The pilot scheme to upskill 10,000 guides across 20 tourist sites through a standardised, high-quality 12-week hybrid programme, along with the National Destination Digital Knowledge Grid, will elevate visitor experience while creating new opportunities for local researchers, historians, content creators and technology partners. The development of 15 archaeological sites into experiential cultural destinations and the launch of Buddhist Circuits in the North-Eastern states will further strengthen heritage and spiritual tourism. We also welcome the reduction in TCS on overseas tour packages to 2%, and lower TCS for education and medical remittances, which will ease travel-related spending. Incentives for indigenising seaplane manufacturing will boost last-mile and remote connectivity, while the plan to establish five Regional Medical Hubs, with integrated healthcare and AYUSH facilities, reinforces India’s ambition to become a global medical tourism hub and a generator of high-quality jobs.
Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts
The Union Budget 2026 reflects a clear thematic shift in India’s tourism agenda from destinations to purpose-led journeys. It positions tourism as a multi-dimensional engine anchored in wellness and healing, spiritual and cultural circuits, nature and conservation-led travel, adventure and mountain ecosystems, and stronger regional connectivity that enables exploration beyond metros.Equally significant is the focus on strengthening the sector’s foundations through hospitality education and skilling, structured upskilling of guides, and the creation of a national digital knowledge grid measures that can raise service standards, enhance visitor experience, and support sustainable destination development. Initiatives spanning Buddhist circuits, sustainable Himalayan hiking trails, medical and wellness tourism, Ayurveda, heritage-led travel, and conservation-linked trails such as Odisha’s turtle nesting corridors together create the right ecosystem for responsible growth where communities, travellers and destinations all benefit. Overall, the Budget creates a strong tailwind for experience-led hospitality and tourism models built around circuits, longer stays and more meaningful travel.
Sanat Hooja, Partner, Machan Resorts
Budget 2026 sends a clear signal that tourism growth must go hand in hand with environmental responsibility. The focus on nature-based tourism, ecological trails, heritage conservation, and experiential destinations reflects a conscious shift towards building tourism that is mindful, inclusive, and future-ready. Investments in connectivity, destination skilling, and digital documentation of cultural and natural assets will help disperse tourism beyond crowded centres, creating balanced growth for both established and emerging destinations. For resorts operating in sensitive ecosystems, such measures encourage thoughtful development rather than volume-led expansion. The continued emphasis on sustainability-driven initiatives is encouraging; however, streamlined licensing processes and clearer, single-window approvals will be critical in enabling both small and large establishments to adopt eco-friendly infrastructure efficiently. Greater institutional support for sustainable practices will further empower responsible operators to invest with confidence. Overall, the Budget lays the groundwork for a more resilient tourism ecosystem one that values conservation, community engagement, and long-term impact as much as economic growth.
Rajesh Magow, IAMAI Governing Council Member and Co-founder & Group CEO, MakeMyTrip
The Budget reinforces the government’s sustained focus on travel and tourism as a long-term growth driver. The rationalisation of TCS on overseas tour packages is a welcome step that addresses upfront liquidity impact on Indian outbound travellers. Infrastructure-led investments have played a crucial role in supporting domestic tourism growth, and it is encouraging to see this momentum sustained. Continued emphasis on regional connectivity, destination development, skilling, and the creation of a national digital repository for destinations will significantly improve discovery and enhance the overall traveller experience.
Aloke Bajpai, IAMAI’s Governing Council Member and Group CEO, Ixigo
The Union Budget placing tourism at the centre of its employment and growth strategy is a strong and welcome signal for the sector, recognising its role in job creation, foreign exchange earnings and strengthening local economies across the country. The increased emphasis on rail and road infrastructure, specifically the budget for New Railway Lines being increased by 14% in FY27 compared to FY26, as well as the increase by 10% of budgetary allocation for highway infrastructure, are both very encouraging moves for the travel industry. This year’s budget has also taken steps to make international travel, both outbound and inbound, more accessible and affordable for Indian travellers with TCS rate cuts on overseas tour packages and the proposed revision of international baggage clearance processes to simplify procedures and reduce dwell time will help deliver a smoother and faster airport experience for inbound travellers.
Arjun Baljee, Founder of ICONIQA and President, Royal Orchid Hotels Ltd.
The Union Budget 2026 reinforces long-term economic momentum through a strong push on infrastructure expansion, logistics efficiency and ease of doing business, all of which directly strengthen India’s travel and business ecosystem. The proposed ₹2.78 lakh crore outlay in Railways Capital and ₹3.10 lakh crore outlay in Roads & Highways is a fundamental shift which is not just about building infrastructure it’s about building accessibility to experiences. Tier-2 and Tier-3 cities with rich cultural heritage but limited connectivity will finally enter the mainstream travel circuit. We’re not just looking at improved logistics for our supply chains, we’re looking at millions of new domestic travellers gaining seamless access to hotels, resorts, and experiences that were previously out of reach. The emphasis on experiential tourism from developing trekking circuits to curating turtle trails along our coastal ecosystems and enhancing archaeological sites signals a strong push towards evolving traveller preferences. Today’s discerning tourists seek authentic, transformative experiences, and these initiatives position India to capture premium segments of the adventure and heritage tourism markets. Additionally, tax and compliance simplifications, along with measures that ease travel costs and promote seamless mobility, will further stimulate both domestic and business travel demand. As hotel development increasingly follows infrastructure and industrial growth corridors, these measures create a positive environment for sustained hospitality sector expansion. We remain committed to supporting India’s growth story by strengthening quality hospitality offerings across emerging destinations.
JB Singh, Director, InterGlobe Air Transport and President & CEO of InterGlobe Hotels
The Budget provides a constructive push for India’s travel and hospitality sectors. The development of cultural, heritage, and nature-based destinations, along with emphasis on skilling and institutional capacity-building, reflects a clear focus on strengthening the sector’s competitiveness, talent, and service standards. It also acknowledges India’s growing outbound tourism market, and the rationalisation of TCS on overseas travel supports this momentum. Together, these steps can enhance India’s global standing in travel and hospitality and support the long-term growth of the sector.
Manju Sharma, Managing Director, Jaypee Hotel and Resorts
The Union Budget 2026 clearly recognises tourism and hospitality as key drivers of employment, foreign exchange, and regional growth. The proposed National Institute of Hospitality, through the upgradation of NCHMCT, will significantly strengthen talent development and service excellence across the sector. The pilot upskilling programme for tourist guides is a timely move towards delivering consistent, high-quality experiences at India’s most iconic destinations. The creation of a National Destination Digital Knowledge Grid is a particularly forward-looking step, combining heritage preservation with digital enablement and opening new avenues for research, content creation, and destination storytelling. The focus on sustainable nature and eco-tourism across trekking, wildlife, birding, and coastal trails demonstrates a balanced approach that aligns tourism growth with environmental responsibility. For experience-led hospitality groups such as Jaypee Hotels & Resorts, these measures will support deeper destination development, higher service standards, and more immersive guest experiences reinforcing India’s position as a globally competitive tourism destination.
KB Kachru, President, Hotel Association of India (HAI) and Chairman South Asia, Radisson Hotel Group
Budget 2026–27 reflects a strong focus on accelerating and sustaining economic growth, with a decisive push on infrastructure both critical drivers for the tourism sector, where growth is closely linked to these factors. The renewed emphasis on the services sector, coupled with the recognition of tourism’s potential to generate employment, boost foreign exchange earnings, and expand local economies, is particularly encouraging. The Budget’s proposals, including the National Institute of Hospitality, aim to strengthen industry-aligned skilling, research, and leadership development. Infrastructure growth in Tier 2–3 cities, the East Coast Tourism Corridor, and importantly the focus on medical-value tourism, are expected to boost hotel viability, diversify India’s offerings, and enhance global competitiveness. Content-creator labs will further amplify India’s tourism story. Industry-specific measures, including the development of new tourist experiences and their enhancement through technology, such as the establishment of the National Destination Digital Knowledge Grid, further signal a forward-looking approach. Despite the Budget’s positive thrust, a long-standing aspiration of the sector comprehensive infrastructure recognition remains unmet. Realising the sector’s true potential requires key structural reforms: expanding infrastructure recognition beyond the currently designated destinations to ensure equitable access to capital, placing tourism on the concurrent list to strengthen Centre state policy coordination, and rationalising GST to enhance competitiveness. These enablers will amplify the impact of current initiatives and provide a strong foundation for sustainable, long-term growth across the tourism sector. Given the government’s clear commitment to the sector, we look forward to engaging in post-budget discussions on sector-specific policies, including Marketing India overseas, that can translate this intent into tangible outcomes. HAI remains dedicated to supporting the government’s vision of expanding the tourism economy to 10% of GDP by 2047, and ideally, achieving this milestone even sooner.
Jyoti Mayal, Chairperson, THSC (Travel Hospitality Skill Council)
I am pleased to welcome Budget 2026 and delighted to see that several initiatives we had proposed during our meeting with the Finance Minister have been incorporated. The proposal to set up the first-ever National Institute of Hospitality, which I have been advocating for over time and had discussed with the Finance Minister during budget consultations, will be transformative for hospitality education and skill development, creating a future-ready workforce for India’s growing tourism and hospitality sector. Reducing TCS to 2% is a welcome, pro-growth move that eases compliance and boosts liquidity. I have been advocating for this since I was the TAAI President and reiterated this in our November meeting with the Finance Minister. This will make international travel more affordable and bring ease of doing business a very positive move that will boost tourism, encourage global exposure, and benefit both travellers and the travel industry. Coupled with a focus on eco-friendly initiatives and enhanced tourism connectivity, the Budget opens new avenues for travel service providers, driving sustainable growth and enriched experiences for travellers. For tourism, the focus on positioning India as a global hub for affordable, high-quality healthcare is visionary. Improved last-mile connectivity to remote destinations will boost tourism, while strengthening spiritual tourism in the North East will attract global pilgrims and foster cultural exchange. The pilot to train 10,000 guides at iconic destinations, supported by IIMs, reflects a strong commitment to grassroots skilling and enhancing visitor experiences. Infrastructure development is another positive step, laying the foundation for improved connectivity, economic growth, and long-term sectoral development. Although the Budget includes several positive measures, it is disappointing that the Tourism Ministry has again not received dedicated marketing funds. India must urgently strengthen its marketing presence, as other countries are investing heavily to attract and position themselves as top tourist destinations.
Sarbendra Sarkar, Managing Director & Founder, Cygnett Hotels & Resorts
Budget 2026 presents a comprehensive and future-ready vision for tourism and hospitality, placing India firmly on a high-growth trajectory. The focus on building a world-class hospitality talent hub, along with professional guide training, will significantly raise service standards and create a skilled workforce capable of delivering globally benchmarked experiences. Digital destination platforms and creator-led promotion signal a modern, data-driven approach to tourism marketing that will enhance visibility and demand across regions. The reduction of TCS on overseas tour packages to 2 percent is a welcome move that improves travel affordability and sentiment, while the rollout of green high-speed rail corridors will redefine inter-city mobility. Faster, sustainable rail connectivity will encourage shorter, more frequent trips and unlock new demand for city and regional hospitality. Enhanced last-mile access through initiatives such as seaplane connectivity further strengthens destination reach. Equally impactful is the emphasis on eco-friendly mountain trails, heritage site revitalisation, Buddhist circuits and Purvodaya-led tourism development. These initiatives balance conservation with livelihood creation and help diversify tourism beyond traditional markets. The growing focus on medical tourism further positions India as a competitive global destination. For Cygnett Hotels and Resorts, this integrated policy push creates a strong foundation for expansion across business, leisure and emerging destinations. Budget 2026 reinforces confidence in India’s tourism growth story, driven by connectivity, capability and conscious development.
Sumit Mitruka, Founder & CEO, Summit Hotels & Resorts
Improved high-speed rail connectivity to Siliguri is a landmark step for the Northeast, with the potential to fundamentally reshape how the region is discovered and experienced. Though not a bullet train, faster and more reliable access will reduce travel fatigue, encourage longer stays, and make destinations across Sikkim, North Bengal and the wider Northeast more attractive for both domestic and international travellers. For the hospitality sector, this means stronger seasonality balance, improved viability for off-beat locations, and greater confidence for long-term investment in responsible tourism infrastructure. Equally significant is the announcement around the development of new trekking routes. The Northeast has some of India’s most pristine landscapes, but much of this potential has remained untapped due to limited access and fragmented planning. Structured trekking corridors, developed with safety, sustainability and local participation at the core, can unlock high-value experiential tourism while preserving ecological integrity. Well-planned trails will generate livelihoods for local guides, porters and homestay owners, while also dispersing tourist footfall beyond a few overcrowded destinations. Together, high-speed connectivity and curated adventure tourism create a powerful ecosystem, one that supports regional economies, promotes cultural exchange, and positions the Northeast as a year-round experiential destination rather than a seasonal getaway.
Ritwik Khare, Founder and CEO, ELIVAAS
Budget 2026 outlines a strong, growth-driven vision for tourism and hospitality, with infrastructure, mobility and affordability working together to expand demand. The announcement of seven high-speed rail corridors is particularly significant, as faster rail connectivity will fundamentally change how travellers plan their trips. Reduced travel time encourages more frequent, shorter holidays and makes weekend and mid-week leisure travel far more viable across regions. High-speed rail also offers a cost-effective alternative to air travel, opening the market to a wider customer base that values speed without premium pricing. The reduction in overseas tour package TCS from 5 percent to 2 percent is another positive step, as it improves overall travel sentiment and disposable spending, indirectly benefiting domestic hospitality as travellers balance international and local experiences. Combined with improved infrastructure and destination development, these measures will increase travel velocity and diversify travel patterns beyond peak seasons. For ELIVAAS, this creates meaningful opportunities. Faster connectivity and shorter travel cycles align well with the growing preference for private, well-managed villas and flexible stay formats. Guests seeking quick, high-quality getaways will increasingly look for trusted accommodation options that offer comfort, privacy and curated experiences. Budget 2026 strengthens the ecosystem needed to support this shift, enabling sustained demand growth, wider geographic expansion and a more resilient, experience-led hospitality market.
Bhavik Sheth, Chief Operating Officer (COO), Evoke Experiences
From a Gujarat lens, the post-Budget focus on upgrading Indus Valley Civilisation sites like Dholavira and Lothal is a powerful step towards positioning the state as a global heritage destination. These sites are not just archaeological landmarks; they are living narratives of India’s 5,000-year-old urban intelligence, sustainability practices and civic planning. Structured investment in interpretation centres, visitor infrastructure and storytelling will allow global travellers to engage more meaningfully with this legacy, rather than experiencing it as static ruins. For experiential hospitality brands like us, this opens up opportunities to curate immersive journeys that blend history, landscape and local communities, from guided archaeological walks and cultural immersions to responsible stays that benefit nearby regions. Gujarat has long had strong cultural assets; this announcement elevates its historical depth on the global stage. If executed thoughtfully, the upgrade of Dholavira and Lothal can redefine heritage tourism in India, moving it towards education-led, experience-driven and globally benchmarked offerings.
Ranjit Batra, CEO – Ventive Hospitality Limited
The Union Budget 2026 places strong emphasis on disciplined capital allocation, infrastructure execution and outcome-based monitoring, all of which are central to the long-term growth of India’s hospitality and tourism sector. A sharper focus on efficient utilization of public funds, regional development and urban infrastructure planning improves visibility for hospitality investments, particularly in emerging cities and leisure destinations. Alongside this, continued attention to skilling, employment creation and regulatory consistency supports the sector’s labor-intensive growth model. Collectively, these measures strengthen investor confidence, accelerate destination readiness and enhance India’s competitiveness as a global tourism and events market.
Chirag Agarwal, Co-founder & CEO, TravClan
The Union Budget 2026 takes a constructive step towards addressing some long-standing operational challenges faced by outbound travel businesses. The reduction of TCS on overseas tour packages to 2% is a welcome move and will ease immediate cash-flow pressure for both travellers and agents, particularly in high-volume, cross-border transactions. Effective implementation will now be critical. Clear guidance on refund timelines, reconciliation processes and system readiness will determine how quickly this relief translates into day-to-day business operations. Beyond taxation, access to formal credit for booking-led travel businesses remains an important gap, as traditional lending frameworks still do not fully account for advance collections and extended settlement cycles. As outbound demand continues to expand from non-metro markets, sustained policy focus on international connectivity, efficient payment systems and regulatory simplicity will be important to support long-term growth. Overall, the Budget signals positive intent, and targeted follow-through can further strengthen the operating environment for Indian travel businesses.”
Aditya Sanghi, CEO of Hotelogix
The Union Budget 2026–2027 sends a clear signal that the Indian tourism and hospitality industry is one of the most important drivers of jobs and growth. Enabling this industry through initiatives such as a National Institute of Hospitality, talent upskilling, and digital infrastructure are welcome steps. However, execution on the ground will define success in the long run. It must empower homegrown midscale hotels in Tier II/III markets to access modern solutions and a skilled workforce easily to thrive sustainably. At Hotelogix, we see this as a pivotal moment to support hotels in this segment with cloud-led, scalable technology that helps them ensure smarter operations and deliver consistently better guest experiences.
Samir MC, CEO, Tamara Leisure Experiences
This Budget lays out a coherent, long-term blueprint to take India’s hospitality and tourism sector decisively onto the global stage. By strengthening institutional capability through a National Institute of Hospitality, envisioned as a bridge between academia, industry, and government, alongside a clear emphasis on skilling and connectivity, it creates a strong foundation for sustainable sectoral growth. Particularly encouraging is the shift towards experience-led tourism, spanning archaeological and heritage sites, spiritual and Buddhist circuits, temple towns, and nature-based destinations across emerging regions. The focus on immersive storytelling, destination-led infrastructure, and development beyond metros reflects an approach aligned with building responsible hospitality destinations that are rooted in place, culture, and community. With improved regional and last-mile connectivity, greener mobility solutions, streamlined clearances, and targeted support for Tier II and Tier III cities as growth engines, the ecosystem is becoming more conducive to long-term, responsible growth. Lastly, the emphasis on regional medical hubs and integrated wellness and AYUSH ecosystems further strengthens India’s appeal as a holistic destination, expanding the scope of tourism beyond leisure into healthcare-led, high-value travel. For us, this Budget closely mirrors the long-term vision we have always believed is essential for building meaningful hospitality destinations.
Anil Chadha, Managing Director, ITC Hotels Limited
The Budget’s renewed focus on tourism is a strong vote of confidence in an industry that creates livelihoods at scale, supporting local entrepreneurs, artisans, and communities across the tourism value chain. The proposed upgradation of National IHMs and the NCHMT (National Council for Hotel Management and Catering Technology), alongside structured guide skilling initiatives, will significantly strengthen service quality and global competitiveness in hospitality. The emphasis on medical tourism further positions India as a trusted destination combining care, capability and hospitality. Equally transformative is the push towards a digital and AI-enabled tourism knowledge framework, which will enhance discoverability, planning and destination management. The Budget’s ‘Growth Connectors’ seven high-speed rail corridors will enhance connectivity between western, southern and eastern parts of the country. The focus on adventure tourism, including trekking, hiking and wildlife trails, along with the development of Buddhist circuits across North-East states, highlights the importance of responsible, experience-led growth that protects the very destinations travellers seek. Together, these measures present a timely opportunity to build India’s tourism advantage on quality, authenticity and sustainability.
Shwetank Singh, MD & CEO, Chalet Hotels
The Union Budget 2026 represents a significant commitment to elevating India’s tourism and hospitality ecosystem, and we are genuinely encouraged by the Finance Minister’s comprehensive vision for the sector. The upgrade of NCHMCT into a National Institute of Hospitality is transformative: it will create a world-class talent pipeline that bridges industry needs with academic excellence, directly addressing the skilled manpower requirements of our expanding sector. The national digital destination registry and the upgrade of 15 archaeological sites into cultural destinations demonstrate a sophisticated understanding of experiential tourism infrastructure. These initiatives, combined with ecologically sustainable mountain trail development, position India to capture diverse tourism segments from heritage to adventure to wellness. However, our long-standing ask to grant comprehensive infrastructure status to the sector continues to remain a distant dream. The sector remains focused on three priorities that will unlock exponential scale: comprehensive infrastructure status recognition beyond the current 50 destinations to enable equitable capital access across all hospitality projects; placement of tourism in the concurrent list to strengthen Centre state policy coordination; and GST rationalisation to enhance competitiveness. With India targeting a $1 trillion GDP contribution from services and 64 million jobs by 2035, these structural enablers will amplify the impact of today’s programmatic investments.
Manoj Bhat, Managing Director & CEO, Mahindra Holidays & Resorts India
“The Union Budget 2026 reinforces the government’s intent to use tourism and hospitality as levers for balanced economic growth rather than treating them as standalone consumption sectors. The focus on destination development beyond metros, improved physical connectivity, and a sharper push on spiritual and heritage circuits reflects a recognition that tourism growth must be geographically distributed and locally rooted. Equally important is the emphasis on skilling and workforce development. As the sector expands into tier two and three markets, the availability of trained talent will determine not just service quality but the sustainability of growth itself. By linking infrastructure creation with human capital development, the Budget moves the conversation from short-term demand creation to building a resilient, employment-generating tourism ecosystem.”
Nikhil Sharma, Managing Director and COO, South Asia, Radisson Hotel Group
We welcome the Union Budget 2026–27 presented by the Hon’ble Finance Minister, which lays the foundation for hospitality and tourism to scale responsibly across India while reinforcing the sector’s role in employment generation and regional economic growth. The renewed focus on strengthening last-mile infrastructure, expanding rail connectivity, and promoting destination-led tourism beyond major metropolitan centres creates a strong foundation for expanding tourism into new growth markets.
The focus on sustainable and experiential tourism, including the development of Himalayan trails, the continued push for Buddhist circuits, and the strong policy thrust on the Northeast, will support the growth of diverse tourism segments while enabling more balanced regional development. These measures are expected to encourage longer stays, wider travel dispersal, and stronger demand for quality accommodation and services across tier-2 and tier-3 markets.
One of the key initiatives is the announcement to set up a National Institute of Hospitality and strengthen the Council for Hotel Management, recognising that skilling will be critical to the sector’s long-term sustainability. The hospitality industry has been reinforcing its talent pipelines through structured training programmes, partnerships with hospitality institutes, and focused efforts to build local capabilities.
Overall, the Budget’s integrated approach to infrastructure, destination development, and skill-building creates a positive environment for tourism and hospitality to scale responsibly. Radisson Hotel Group’s expansion across emerging destinations, including the Northeast, and its continued investment in skill development are closely aligned with this direction, supporting the creation of sustainable jobs and resilient tourism ecosystems.
Karan Agarwal, Director, Cox & Kings
What stood out for me in this Budget is that it doesn’t treat travel as a one-sided story. Outbound travel needed a course correction, and cutting TCS on foreign tour packages to 2% does exactly that—it takes away a friction that travellers were feeling every time they planned a trip. On the inbound side, the intent is clearly longer-term. What stands out is the emphasis on cultural and experiential travel, whether through developing archaeological sites, strengthening Buddhist circuits, or building skilled local guide networks, which tells us the focus is finally shifting to how India is experienced, not just how many people arrive. If this is executed well, it could move Indian tourism from being crowded and transactional to curated and experience-led.
Dinesh Yadav, Founder and MD, Fine Acers
Budget 2026 is the most decisive signal we’ve seen in years that tourism is no longer a soft sector; it is now a core economic growth engine. With tourism already contributing close to 7–8% of India’s GDP and supporting millions of direct and indirect jobs, this Budget finally gives the sector the long-awaited structural push it deserves. The hotel business will benefit from the establishment of seven high-speed train routes proposed by the government. Improved transportation links between major cities and developing areas will boost weekend tourism, multi-city travel, and the continued demand for vacation resorts and unique accommodation experiences. The programme to educate 10,000 tourist guides while establishing five medical tourism centres will improve service standards and attract high-value international travellers to the region. Medical tourism alone is projected to grow into a USD 50 billion market in the coming years. Combined with investments in national waterways and coastal connectivity, Budget 2026 firmly positions tourism as a catalyst for jobs, regional development, and long-term hospitality investment.
Niranjan Hiranandani, Chairman of NAREDCO & Hiranandani
The Union Budget 2026–27 firmly lays out a roadmap for an Aatmanirbhar Bharat, emphasizing infrastructure development, regionally integrated growth, and the empowerment of MSMEs as the cornerstone of India’s next phase of robust economic expansion. Marking a decisive increase, the government has proposed a significant public capital expenditure of ₹12.2 lakh crore, which is expected to generate strong multiplier effects across critical sectors, including real estate, construction, logistics, and allied industries. The emphasis on enhancing execution certainty and investor confidence lays a solid foundation for sustainable development and long-term investments.
Kunal Vasudeva, Managing Director and Co-Founder, Indian School of Hospitality
The Union Budget 2026 places education at the centre of India’s economic ambition. The Education to Employment and Enterprise framework, university townships, and investments in future technologies signal that education is being treated as national infrastructure. The next phase rests on execution at scale through teacher capability, strong primary education outcomes, and delivery standards that work across the country. Sustained focus here will anchor services-led growth and Viksit Bharat.
Vineet Verma, Director, Brigade Hotel Ventures Limited
Tourism has finally received the strategic recognition it deserves in this year’s Budget. The emphasis on infrastructure-led development, experiential tourism, and ease of doing business sends a strong signal to investors and operators alike. This can accelerate asset creation, improve quality standards, and unlock the sector’s true economic potential. The Budget’s emphasis on tourism also goes beyond infrastructure and rightly addresses the sector’s biggest gap skilled human capital. The proposed National Institute of Hospitality, along with focused training of tourist guides and service professionals, can significantly raise quality standards, visitor experience, and global competitiveness of Indian tourism.
Motiverge Travel View
At Motiverge Travel, we view the Union Budget 2026 as more than a policy document. It is a directional signal for how India wants to travel, host and grow. By aligning infrastructure expansion with sustainability, skilling, digital enablement and regional inclusion, the Budget lays the foundation for a tourism ecosystem that values experiences over footfalls and long-term impact over short-term volume. The real opportunity now lies in execution and in how effectively industry, states and local communities translate intent into authentic, responsible and memorable journeys. If done right, this moment could redefine India’s tourism story, making it more resilient, inclusive and globally relevant in the years ahead.
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