Budget 2026: The travel & tourism industry of India stands at a crucial juncture as the country eyes its ambitious goal of becoming a $5 trillion economy. Industry experts want the Union Finance Minister to untap the hidden potential in travel and tourism segments of the country.
Presently, the industry contributes nearly 6.5-8.0 percent to GDP pre-pandemic and employing more than 40 million people, the travel & tourism sector expects a series of welfare, economic and social measures to drive industry revival after a somewhat good year in 2025.
DON'T MISS
Key Demands & Expectations From Budget 2026
Key demands include extensions of Micro Units Development and Refinance Agency (MUDRA) loans for homestays, fresh funding under Swadesh Darshan 2.0 and Ude Desh ka Aam Naagrik (UDAN) scheme expansions.
A series of growth-inducing budgetary measures could go a long way to turbocharge tourism in tier-2 and tier-3 cities of the country such as Bhopal, Bhubaneswar, Chandigarh, Coimbatore, Dehradun, Guwahati, Indore and Jaipur, unlocking hidden gems beyond the Taj Mahal and Goa beaches.
The Right Way Forward
Industry stakeholders expect the Budget 2026 may sharpen its focus on strengthening tourism infrastructure across rail, road and air transport. Union Finance Minister Nirmala Sitharaman may introduce budgetary measures under the Special Assistance to States for Capital Investment (SASCI) and the Challenge-Based Destination Development (CBDD) scheme.
The Indian Tourism & Hospitality Association (ITHA) is pushing for higher loan ceilings up to ₹20-40 lakh and simplified disbursal for homestay owners in aspirational districts. Many believe that such developmental measures could draw Gen Z and Millennials seeking sustainable, Instagram-worthy escapes to tier-3 towns like Coorg or Ziro Valley.
Many industry experts are counting the Finance Minister to announce ₹25,000-30,000 crore for new projects, prioritizing underserved regions under Swadesh Darshan 2.0. Tier-2/3 cities crave more routes under the UDAN (Ude Desh ka Aam Naagarik) scheme and budget 2026 expectations include 100 new UDAN routes, with subsidies extended to 2028-30.
