Finance Minister Nirmala Sitharaman on Feb. 1 unveiled a multi-pronged strategy for India’s tourism sector in the Union Budget 2026-2027, focusing on heritage conservation, specialized eco-tourism trails, and significant tax relief for overseas travelers. The proposals aim to position tourism as a major driver of employment and foreign exchange earnings in India’s journey toward a “Viksit Bharat” (developed India).
Heritage & Spiritual Infrastructure
- A primary highlight is the transformation of 15 archaeological sites, including Lothal, Dholavira, Sarnath, and Leh Palace, into “vibrant, experiential cultural destinations”. These sites will feature curated walkways and immersive storytelling technologies to enhance the visitor experience.
- Furthermore, the government will develop Buddhist Circuits across the North-Eastern states, including Arunachal Pradesh and Sikkim, focusing on temple preservation and pilgrim amenities.
Sustainable & Eco-Tourism Initiatives
- In a push for high-end niche tourism, the budget outlines the development of ecologically sustainable trails. These include mountain trails in Himachal Pradesh and the Western Ghats, turtle nesting trails along the coasts of Odisha and Kerala, and bird-watching trails at Pulikat Lake.
- To support international conservation leadership, India will host the first-ever Global Big Cat Summit, involving ministers from 95 range countries.
Manpower & Digital Transformation
- To professionalize the sector, the government will upgrade the National Council for Hotel Management and Catering Technology into a National Institute of Hospitality.
- A pilot scheme will also be launched to upskill 10,000 guides across 20 iconic sites through a 12-week training course conducted in collaboration with an Indian Institute of Management.
- Additionally, a National Destination Digital Knowledge Grid will be established to digitally document all cultural and spiritual places of significance. This initiative is expected to create a new job ecosystem for local researchers, historians, and content creators.
Fiscal Incentives & Connectivity
- The budget provides significant relief for travelers by reducing the TCS (Tax Collected at Source) rate on overseas tour packages from the current 5% and 20% to a uniform 2%.
- To enhance remote connectivity, a Seaplane VGF (Viability Gap Funding) Scheme will be introduced to indigenize manufacturing and support operations to inaccessible locations.
Allocation & Economic Outlook
- While specific departmental outlays were integrated across various umbrellas, the budget allocates ₹5,000 crore per City Economic Region (CER) over five years for modernizing infrastructure in Tier-II and Tier-III cities, specifically including temple towns. The government has also provided ₹2 lakh crore in support to states under the SASCI scheme for infrastructure development, which includes tourism-related projects.
Outlook: Tourism as a Catalyst for Inclusive Growth
The government’s outlook for tourism is rooted in its second Kartavya (duty) to fulfill the aspirations of the youth. By integrating these measures, India aims to capture a 10% global share of the services market by 2047, with tourism playing a central role in generating large-scale employment and rural prosperity.
The 2026-27 budget reflects a strategic shift toward tourism-led development, with a clear focus on sustainability, inclusivity, and digital transformation. By integrating tourism with infrastructure, skilling, and cultural preservation, the government aims to unlock new employment opportunities, especially for youth and rural communities, while enhancing India’s global appeal.