Union Budget 2026 Expectations: Hospitality Sector Awaits Infrastructure Status and GST Relief
As India prepares for the Union Budget 2026, the hospitality industry is voicing its long-standing demands for policy support to accelerate growth and competitiveness. EaseMyTrip CEO Rikant Pittie has emphasized the critical need for infrastructure status for the hospitality sector, a move that could transform the industry's financial landscape.
Infrastructure Status: A Game-Changer for Hospitality
The hospitality sector has been advocating for infrastructure status for years, and Budget 2026 presents a pivotal opportunity for the government to address this demand. Granting infrastructure status would provide the industry with several key benefits:
- Easier access to capital: Financial institutions would be more inclined to offer loans and investments at favorable terms.
- Lower borrowing costs: Reduced interest rates could significantly cut operational expenses for hotels and tourism businesses.
- Enhanced project viability: Long-term infrastructure projects in hospitality would become more attractive to developers and investors.
Industry experts believe that this status would not only boost domestic tourism but also position India as a more competitive global destination.
GST Rationalization: Easing the Tax Burden
In addition to infrastructure status, the hospitality sector is seeking relief in the Goods and Services Tax (GST) framework. Current GST rates on hotel accommodations and related services are seen as a barrier to growth, particularly for budget and mid-segment hotels. Key expectations include:
- Reduction in GST slabs for hotel rooms to make travel more affordable.
- Simplification of compliance procedures to reduce administrative burdens.
- Incentives for eco-friendly and sustainable tourism initiatives.
Rikant Pittie of EaseMyTrip argues that such measures would stimulate demand, encourage domestic travel, and support the post-pandemic recovery of the tourism ecosystem.
Broader Implications for the Indian Economy
The hospitality sector's demands align with broader economic goals, such as job creation, foreign exchange earnings, and regional development. By addressing these issues in Budget 2026, the government could:
- Foster employment opportunities in tourism-dependent regions.
- Boost ancillary industries, including transportation, food services, and retail.
- Enhance India's soft power and cultural diplomacy through increased tourist inflows.
As stakeholders await the budget announcement, there is optimism that policy interventions will pave the way for a more resilient and vibrant hospitality industry.
