Budget 2026: Sitharaman Announces Comprehensive Measures to Revitalize India's Tourism Sector
In her Union Budget 2026 speech, Finance Minister Nirmala Sitharaman unveiled a series of ambitious initiatives aimed at boosting India's tourism industry. Recognizing the sector's potential for employment generation, foreign exchange earnings, and local economic expansion, the Budget places tourism at the heart of India's growth strategy, especially as foreign tourist arrivals have yet to reach pre-pandemic levels.
Digital Documentation and Hospitality Education
Sitharaman proposed the establishment of a National Destination Digital Knowledge Grid to digitally document all significant cultural and spiritual sites across the country. This initiative aims to enhance accessibility and preservation of India's rich heritage.
Additionally, she announced plans to upgrade the existing National Council for Hotel Management and Catering Technology into a National Institute of Hospitality. This institute will serve as a crucial bridge between academia, industry, and government, fostering skill development and innovation in the hospitality sector.
Heritage and Archaeological Development
The Budget includes a focus on transforming 15 archaeological sites into vibrant experiential cultural destinations. Key sites such as Lothal, Dholavira, Rakhigarhi, Sarnath, Hastinapur, and Leh Palace will be developed with curated walkways, immersive storytelling, and advanced technologies for conservation labs and interpretation centres.
In line with promoting India's spiritual heritage, Sitharaman launched a Scheme for Development of Buddhist Circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura. This scheme will cover temple and monastery preservation, pilgrimage interpretation centres, connectivity improvements, and pilgrim amenities.
Medical Tourism and Skill Enhancement
To position India as a global leader in medical value tourism, the government plans to support states in establishing five regional medical tourism hubs across the country, developed in partnership with the private sector. Key announcements include:
- Establishing three new All India Institutes of Ayurveda
- Upgrading the World Health Organization Global Traditional Medicine Centre in Jamnagar
- Launching a loan-linked subsidy scheme for veterinary infrastructure
A pilot scheme will upskill 10,000 guides at 20 iconic tourist sites through a standardized 12-week hybrid training program in collaboration with an Indian Institute of Management.
Eco-Tourism and Nature Trails
The Budget emphasizes eco-tourism with plans to develop ecologically sustainable mountain and nature trails in regions like the Himalayas, Western Ghats, and Eastern Ghats, including specific areas in Himachal Pradesh, Uttarakhand, Jammu and Kashmir, and Araku Valley. These trails aim to offer world-class trekking and hiking experiences.
Special wildlife tourism trails will also be created, such as turtle trails along nesting sites in Odisha, Karnataka, and Kerala, and bird-watching trails around Pulicat Lake.
Tax Relief and Industry Support
In response to industry demands, Sitharaman proposed reducing the Tax Collected at Source (TCS) rate on overseas tour packages from 5% and 20% to 2%, with no minimum amount, providing significant relief to the tourism sector.
Overall, Budget 2026's tourism measures reflect a holistic approach to leveraging India's cultural, natural, and medical assets to drive economic growth and employment.
