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Official factsheet: Tourism identified as strategic growth driver in Budget

Budget outlines targeted push to jobs; pilgrimage, culture and eco-tourism anchor new initiatives

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Official factsheet: Tourism identified as strategic growth driver in Budget
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25 Feb 2026 8:49 AM IST

New Delhi: India’s tourism sector is poised for accelerated growth, with the Union Budget 2026–27 proposing a series of targeted interventions to strengthen institutional capacity, improve service quality, and enhance destination competitiveness.

Tourism has been identified as a strategic growth driver owing to its strong multiplier effect and capacity to generate livelihoods across hospitality, transport, handicrafts, and allied services, according to an official factsheet issued by the Ministry of Tourism.

Based on the India Tourism Data Compendium 2025, the sector contributes 5.22 per cent to India’s GDP (total impact), with a direct share of 2.72 per cent. Tourism supports 13.34 per cent of total employment, including a direct employment share of 5.82 per cent, underlining its role in inclusive development.

Key initiatives following the Union Budget 2026–27 include destination development, modernisation of tourism infrastructure, heritage and experiential site development, creation of digital knowledge grids for tourism assets, and promotion of nature-based and wildlife tourism.

Special focus will be placed on preserving temples and monasteries, creating pilgrimage centres, and improving connectivity and amenities in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura. Five major tourism destinations will be developed across Purvodaya States, supported by 4,000 e-buses to improve last-mile connectivity.

The Budget also proposes five regional medical hubs to promote India as a global medical tourism destination and the development of 15 archaeological sites—including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace—as vibrant cultural destinations.

India will also host the first Global Big Cat Summit, reinforcing its leadership in eco-tourism diplomacy. A National Institute of Hospitality and a pilot programme to upskill 10,000 tourist guides aim to bridge skill gaps and elevate visitor experiences. Overall, the Budget positions tourism as a resilient, high-impact sector focused on job creation, investment, and sustainable regional growth.

Ministry of Tourism National Institute of Hospitality Arunachal Pradesh Sikkim Assam Manipur Mizoram Tripura Lothal Dholavira Rakhigarhi Adichanallur Sarnath Hastinapur Leh Palace Global Big Cat Summit Purvodaya States medical tourism India cultural destinations India 
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