Indian finance minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, outlining several initiatives aimed at strengthening the tourism sector.
As part of the budget measures, India will develop seven high-speed rail corridors as growth connectors between key cities, including Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri.
The budget also proposed the development of ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, as well as in Araku Valley in the Eastern Ghats and Podhigai Malai in the Western Ghats.
JB Singh, director of InterGlobe Air Transport and president and CEO of InterGlobe Hotels, said: “The budget provides a constructive push for India’s travel and hospitality sectors. The development of cultural, heritage and nature-based destinations, along with an emphasis on skilling and institutional capacity-building, reflects a clear focus on strengthening the sector’s competitiveness, talent and service standards.”
The budget has also proposed a pilot scheme to upskill 10,000 guides across 20 iconic tourist sites through a standardised, high-quality 12-week training programme delivered in hybrid mode, in collaboration with an Indian Institute of Management.
“The industry is particularly encouraged by the focus on eco-tourism, trekking and wildlife trails in line with global demand for sustainable and experience-based travel. The large-scale skilling of tourist guides will strengthen professionalism and enhance India’s global tourism competitiveness,” said Ravi Gosain, president of the Indian Association of Tour Operators.
In a push to medical tourism, the government plans to launch a scheme to support states in establishing five regional medical hubs in partnership with the private sector. These hubs will serve as integrated healthcare complexes combining medical, educational and research facilities.
To enhance last-mile and remote connectivity, incentives have been proposed to indigenise the manufacturing of seaplanes. The government has also proposed developing 15 archaeological sites – including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur and Leh Palace – into experiential cultural destinations.
Sarbendra Sarkar, founder and managing director of Cygnett Hotels & Resorts, said: “Medical tourism has an immense potential to grow inbound tourist arrivals in the country. Equally impactful is the emphasis on eco-friendly mountain trails, heritage sites and remote connectivity.”
In addition, turtle trails will be created along key nesting sites in the coastal regions of Odisha, Karnataka and Kerala, alongside birdwatching trails in Andhra Pradesh and Tamil Nadu. The budget has also proposed reducing the Tax Collection at Source rate on the sale of overseas tour packages from the current five per cent and 20 per cent to two per cent, without any stipulation on amount.
