Tourism has been positioned as a major economic driver in the Union Budget 2026-27, with Finance Minister Nirmala Sitharaman unveiling a comprehensive roadmap focused on infrastructure expansion, sustainability, skill development, and medical tourism. The latest budget signals the government’s intent to transform India into a globally competitive and future-ready tourism destination.
Tourism Budget Sees Significant Boost
The Ministry of Tourism received a substantial increase in allocation, with funding rising to ₹2,541.06 crore for FY 2026-27. The enhanced outlay reflects the sector’s growing importance in job creation, regional development, and foreign exchange earnings.
Key Tourism Announcements in Budget 2026-27
Sustainable Trekking and Eco-Tourism Trails
A flagship initiative announced in the budget is the launch of a project to develop ecologically sustainable mountain trails. These trails will span key natural regions including:
- Himachal Pradesh
- Jammu and Kashmir
- Aravalli Range
- Eastern Ghats
- Western Ghats
The project aims to promote responsible tourism while protecting fragile ecosystems and supporting local livelihoods.
Five Medical Tourism Hubs Planned
To strengthen India’s position as a global healthcare destination, the government proposed setting up five regional medical tourism hubs. These hubs will be developed in partnership with the private sector, combining world-class medical infrastructure with hospitality services to attract international patients.
Skill Development and Youth Employment
The budget places strong emphasis on professionalising the tourism workforce:
- A pilot programme to upskill 10,000 tourist guides across 20 iconic destinations, with high-quality training conducted in collaboration with an Indian Institute of Management (IIM).
- Proposal to establish a National Institute of Hospitality, aimed at creating a skilled, globally competitive workforce for the tourism and hospitality industry.
Connectivity and Tourism Infrastructure
To unlock new tourism circuits and improve accessibility, the government announced:
- Seven new high-speed rail corridors connecting emerging tourist hubs.
- Renewed focus on the Buddhist Circuit, particularly in the Northeastern states, to promote spiritual and cultural tourism.
Boost to the “Orange Economy” and Creative Tourism
The Budget 2026-27 also expanded focus on the Animation, Visual Effects, Gaming, and Comics (AVGC) sector. By leveraging India’s creative industries, the government aims to enhance cultural storytelling, digital experiences, and “creative tourism” offerings for both domestic and international visitors.
Continuing Tourism Initiatives from Budget 2025-26
Several major programmes announced in the previous budget continue to receive policy support:
- 50 Iconic Tourist Destinations to be developed under a “challenge mode” in collaboration with state governments.
- Continued access to Mudra loans for homestays, strengthening rural and community-based tourism.
- 50-year interest-free loans worth ₹3,295.8 crore for states to accelerate long-term tourism and infrastructure development.
A Strategic Push for Tourism-Led Growth
With a blend of sustainability, connectivity, skill development, and private-sector collaboration, the Union Budget 2026-27 marks a decisive shift in positioning tourism as a core pillar of India’s economic growth strategy. The focus on medical tourism, eco-trails, creative industries, and high-speed connectivity is expected to generate employment, attract global travellers, and promote balanced regional development in the years ahead.
