Budget 2026 has reduced allocation for Tourism sector
By Arun Kumar Das
New Delhi, Feb 2 (BVI): The Tourism sector has been allocated Rs 2,438 crore in the Budget for the financial year 2026-27, marking a reduction from Rs 2,541.06 crore in the last fiscal.
The amount has been earmarked for infrastructure, skill development for 10,000 guides, and promoting regional circuits, including Buddhist sites in the Northeast.
The reduced allocation has come in for criticism from experts in the field, who rued that Tourism has not been given Export Industry Status and incentives on Foreign Exchange Earnings have not been re-introduced.
The allocation of funds for marketing India is absolutely low and meaningless, said Chairman of Indian Chamber of Commerce, aviation and tourism expert committee Subhash Goyal.
“This was a unique opportunity for the government to make tourism and instrument for job creation, poverty, dedication for an exchange, earning and putting Indian economy on a fast track. Unfortunately, this opportunity has not been fully utilised,” he said.
“Our Finance Minister could have done much more for the country through Tourism.”
Union Minister of Tourism and Culture Gajendra Singh Shekhawat, however, claimed that the Budget provides “unprecedented and far-beyond-expectations encouragement to the tourism and culture sectors”.
In a message shared on social media, the Minister described the Budget as “forward-looking and transformative” and said it will “accelerate development and firmly position India as a global tourism hub and cultural leader.”
The Budget proposes the development of thematic tourism trails across India, including Mountain Trails in Himachal Pradesh, Uttarakhand, and Jammu & Kashmir. Eco & Nature Trails in Araku Valley (Eastern Ghats) and Podhigai Malai (Western Ghats).
The Union Budget also plans for Turtle Trails along key nesting sites in Odisha, Karnataka, and Kerala and Bird Watching Trails at Pulicat Lake in Andhra Pradesh and Tamil Nadu.
Besides the Budget proposes to have a major cultural initiative includes the development of 15 archaeological sites such as Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace into vibrant, experiential destinations blending conservation with visitor engagement.
To strengthen spiritual tourism, a new scheme for Buddhist Circuits in the North-East will be launched, covering Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura. The scheme will include preservation of temples and monasteries, pilgrimage interpretation centres, improved connectivity, and pilgrim amenities.
Skill development receives a significant push with a proposal to provide world-class training to 10,000 tour guides across 20 major destinations through a pilot project in collaboration with the Indian Institutes of Management (IIMs) using both online and offline modes.
In a major education reform, the National Council for Hotel Management will be developed into a National Institute of Hospitality, strengthening professional training and aligning hospitality education with global standards.
To promote India as a medical tourism hub, the Budget proposes support to states for establishing five regional medical tourism hubs.
India will also host the first Global Big Cat Summit, bringing together leaders and ministers from 95 countries, further reinforcing India’s leadership in wildlife conservation and eco-tourism diplomacy.
Additionally, the Budget envisions the creation of five major tourism destinations in the Purvodaya States, supporting balanced regional development. (BVI)
