The Union Budget 2026-27 identified tourism as a key driver of employment generation and regional development, announcing various measures for eco-tourism, heritage conservation, transport connectivity, guide skilling and medical tourism.
Representative image. (Shutterstock)While presenting the budget in Parliament on Sunday, Union Finance Minister Nirmala Sitharaman said, “The tourism sector has the potential to play a major role in generating employment, earning foreign exchange and expanding the local economy.”
A major focus was placed on trekking and nature based tourism. “India has the potential and opportunity to offer world-class trekking and hiking experiences,” said Sitharaman. He announced that the government would develop environmentally sustainable mountain passes in Himachal Pradesh, Uttarakhand and Jammu and Kashmir as well as in the Araku Valley of the Eastern Ghats and Podhigai Malai of the Western Ghats.
The budget also outlines plans to strengthen wildlife-linked tourism infrastructure. Sitharaman said turtle trails will be built along the coastal areas of Odisha, Karnataka and Kerala, while bird watching trails will be built around Pulicat Lake in Andhra Pradesh and Tamil Nadu.
To address the human resource requirement in the sector, the Finance Minister announced a pilot scheme to develop 10,000 tourist guides at 20 iconic destinations. The program will follow a 12-week hybrid training model and will be implemented in collaboration with an Indian Institute of Management. According to Sitharaman, the course will focus on local culture, history, safety and eco-tourism practices.
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The budget proposes to upgrade the National Council for Hotel Management and Catering Technology to the National Institute of Hospitality. Sitharaman said the institute would act as a bridge between academia, industry and government.
Another digital initiative announced is the creation of a National Destination Digital Knowledge Grid. Sitharaman said the platform will digitally document places of cultural, spiritual and traditional significance, while creating employment opportunities for researchers, historians, content creators and technology partners.
On heritage tourism, the finance minister proposed to develop 15 archaeological sites namely Lothal, Dholavira, Rakhigari, Adichanallur, Sarnath, Hastinapur and Leh Palace as public destinations. Sitharaman said the excavated landscapes will be opened up to visitors through curated walkways, supported by interpretation centers and conservation laboratories.
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Medical tourism also features prominently. Sitharaman announced a scheme to assist states in establishing five regional medical hubs in partnership with the private sector. “To promote India as a hub for medical tourism services, I propose to launch a scheme to support states in setting up five regional medical centers in partnership with the private sector,” he said.
According to the finance minister, these hubs will integrate healthcare delivery, education and research and will include AYUSH centres, medical value tourism facilities, diagnostics, post-care and rehabilitation infrastructure.
Transport links constitute another pillar of the tourism push. Sitharaman proposed the development of seven high-speed rail corridors connecting Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri. The corridors are intended to connect urban centres, manufacturing clusters and emerging cities.
The budget proposes incentives for domestic production of seaplanes and performance gap funding to boost regional air connectivity and tourism. “We will also push for indigenous manufacturing of seaplanes to promote tourism…I propose to give incentives to indigenous manufacturing of seaplanes. A VGF scheme will also be launched to provide support for operations,” Sitharaman said.
Industry stakeholders welcomed several announcements pointing to remaining gaps. “The Union Budget’s focus on tourism is timely and recognizes its role in generating hospitality, jobs, foreign exchange and inclusive growth,” said Ravi Gosain, president of the Indian Association of Tour Operators.
Rajeev Mehra, General Secretary, Federation of Associations in Indian Tourism and Hospitality said, “We welcome the government’s initiative to develop new adventure trail sites across the state, focus on improving tourist guides, use of AI to enhance tourism destinations and reduction of TCS in foreign travel.”
