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Union Budget 2026-27 puts tourism at core, backs trails, heritage, rail, guides
On heritage tourism, the finance minister proposed the development of 15 archaeological sites as public destinations.
The Union Budget 2026–27 has mentioned tourism as a key driver of employment generation and regional development, announcing a range of measures spanning eco-tourism, heritage conservation, transport connectivity, guide skilling and medical tourism.
Presenting the Budget in Parliament on Sunday, Union finance minister Nirmala Sitharaman said, “The tourism sector has the potential to play a large role in employment generation, forex earnings and expanding the local economy.”
A major focus was placed on trekking and nature-based tourism. Sitharaman said, “India has the potential and opportunity to offer world-class trekking and hiking experience.” She announced that the government would develop ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, as well as in Araku Valley in the Eastern Ghats and Podhigai Malai in the Western Ghats.
The Budget also outlined plans to strengthen wildlife-linked tourism infrastructure. Sitharaman said turtle trails would be developed along nesting sites in coastal areas of Odisha, Karnataka and Kerala, while bird-watching trails would be created around Pulicat Lake in Andhra Pradesh and Tamil Nadu.
To address human resource requirements in the sector, the finance minister announced a pilot scheme to upskill 10,000 tourist guides across 20 iconic destinations. The programme 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.
The Budget proposed upgrading the National Council for Hotel Management and Catering Technology into a National Institute of Hospitality. Sitharaman said the institute would serve as a bridge between academia, industry and government.
Another digital initiative announced was the creation of a National Destination Digital Knowledge Grid. Sitharaman said the platform would digitally document places of cultural, spiritual and heritage significance, while creating employment opportunities for researchers, historians, content creators and technology partners.
On heritage tourism, the finance minister proposed the development of 15 archaeological sites as public destinations, namely Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur and Leh Palace. Sitharaman said excavated landscapes would be opened to visitors through curated walkways, supported by interpretation centres and conservation laboratories.
Medical tourism also featured prominently. Sitharaman announced a scheme to support 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 establishing five regional medical hubs, in partnership with the private sector,” she said.
According to the finance minister, these hubs will integrate healthcare delivery, education and research, and will include AYUSH centres, medical value tourism facilitation centres, diagnostics, post-care and rehabilitation infrastructure.
Transport connectivity formed 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 link urban centres, manufacturing clusters and emerging cities.
The Budget also proposed incentives and viability gap funding for indigenous manufacturing of seaplanes to boost regional air connectivity and tourism. “In order to promote tourism we will also push for indigenous manufacturing of sea planes…I propose to give incentives to indigenised manufacturing of sea planes. A VGF scheme will also be introduced to provide support for operations,” Sitharaman said.
Industry stakeholders welcomed several announcements while pointing to remaining gaps. Ravi Gosain, president of the Indian Association of Tour Operators, said, “The Union Budget’s focus on tourism is timely and welcome, recognising its role in jobs, foreign exchange and inclusive growth.”
Rajiv Mehra, general secretary of the Federation of Associations in Indian Tourism and Hospitality, said, “We welcome the government’s initiatives to develop new adventure trail sites across states, the focus on upskilling tourist guides, the use of AI for enhancing tourist destinations, and the reduction of TCS on overseas travel.”
