A Smokeless Engine Set to Surge in 2026

In India’s development journey, tourism has long functioned as an invisible force. Unlike heavy industries, it creates employment for millions without smoke-belching factories. Hotels, restaurants, taxis, trains, airlines, handicrafts, local food producers and guide services all derive indirect livelihoods from this sector.

Recognising this reality, the Union Budget 2026–27 has positioned tourism not merely as a leisure activity but as a key pillar of India’s economic architecture. According to India Tourism Data 2025, the sector accounts for 5.22 per cent of GDP in total impact and contributes over 13 per cent to national employment, underscoring its socio-economic importance. The Budget accordingly treats tourism as a primary instrument for job creation, regional balance, investment attraction and sustainable development.

Spiritual Illumination in the Northeast: In the Footsteps of the Buddha

Among the most significant proposals is the development of Buddhist circuits in Northeast India. Arunachal Pradesh, Assam, Sikkim, Manipur, Mizoram and Tripura are home to centuries-old Buddhist heritage. However, due to inadequate transport, accommodation and information facilities, these destinations have yet to secure a prominent place on the global Buddhist tourism map.

The new initiative aims to upgrade ancient monasteries and temples to international standards. Beyond religious travel, the programme is designed to transform the socio-economic landscape of these regions. Special ‘interpretation centres’ will be established for pilgrims. Conservation of temples and monasteries, development of pilgrim interpretation facilities, improved road and rail connectivity, and essential visitor amenities are also planned. The initiative is expected to generate employment for local youth, boost small businesses and strengthen regional development.

Swadesh Darshan 2.0

The Buddhist circuit proposal builds on the experience of the Swadesh Darshan scheme launched in 2014–15. The scheme originally focused on theme-based tourism circuit development across the country. With evolving tourism trends, it was restructured as Swadesh Darshan 2.0 to prioritise environmental sustainability, community participation and livelihood enhancement. So far, ₹5,290.33 crore has been sanctioned for 76 projects, of which 75 have been completed, reflecting strong implementation capacity. These experiences form the foundation for the new proposals in Budget 2026–27.

Eco-Trails and Nature Tourism

Amid growing global concern over climate change, India is placing nature at the centre of tourism development. Eco-trails are proposed in Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Araku Valley and the Podigai Hills region. Turtle trails are planned along the coasts of Odisha, Karnataka and Kerala, while bird-watching trails will be developed at Pulicat Lake in Andhra Pradesh.

These initiatives aim not only to attract visitors but also to involve local communities in conservation efforts. Tourism is thus positioned as both a revenue generator and a tool for protecting biodiversity.

Green Connectivity to Destinations

Transport infrastructure remains fundamental to tourism growth. The Union Budget 2026–27 emphasises rail expansion, regional connectivity and high-speed trains to bring remote, tribal and hill areas into the mainstream tourism network. Enhanced roads, upgraded railway stations and electric bus services are expected to increase tourist inflows and expand markets for local products.

To reduce pollution in tourist regions and promote sustainable travel, 4,000 electric buses will be introduced in the Purvodaya states, offering environmentally friendly mobility options and linking tourism more closely with broader economic systems.

Global Big Cat Summit 2026: Environmental Diplomacy

Demonstrating leadership in wildlife conservation, India will host the world’s first ‘Big Cat Summit’ in 2026, with representatives from 95 countries. As the only country home to five of the seven major big cat species including tiger, lion and leopard India aims to strengthen its position as a global leader in wildlife tourism.

The summit will deliberate on wildlife conservation, scientific cooperation and sustainable wildlife tourism. India’s leadership is further reinforced through the International Big Cat Alliance, headquartered in the country. The event underscores tourism’s emerging role as an instrument of international diplomacy.

A Boost to the Hospitality Sector

Human resource quality is central to tourism success. The government has proposed upgrading the National Council for Hotel Management into the National Institute of Hospitality. Through international-standard education, research and industry-academia collaboration, the institute will provide advanced training to youth entering the hospitality sector.

Additionally, 10,000 guides at 20 major tourist centres will receive a 12-week specialised training programme in collaboration with IIMs. This initiative is expected to professionalise guiding services and improve livelihood opportunities.

Reviving History: 15 Iconic Archaeological Sites

Despite its vast civilisational heritage, many archaeological sites have yet to become fully developed tourism destinations. Fifteen sites including Lothal, Dholavira, Rakhigarhi, Sarnath, Hastinapur and Leh Palace will be developed as ‘Vibrant Cultural Destinations’. Walking trails, interpretation centres and enhanced visitor facilities will be introduced in coordination with schemes such as PRASAD.

Curated walkways and museums will enable visitors not merely to see these locations but to experience their history.

Medical Tourism: Growth Through Health

With global medical tourism expanding rapidly, India’s reputation for affordable, high-quality healthcare offers significant potential. To capitalise on this strength, five regional medical hubs will be established, integrating advanced hospitals with AYUSH centres such as Ayurveda and Yoga facilities.

Combining modern medical services, traditional wellness systems and rehabilitation infrastructure, these hubs are expected to position India as a global health tourism destination while generating benefits across hospitality, transport and service sectors.

‘Purvodaya’: Turning Eastward

The Purvodaya strategy focuses on five eastern states Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh. The plan includes developing one major tourism destination in each state, linking them to the East Coast Industrial Corridor, and deploying 4,000 e-buses.

These measures aim to reduce regional disparities and transform eastern India into a tourism hub.

National Destination Digital Knowledge Grid

All historical and spiritual destinations across India will be digitised under a National Destination Digital Knowledge Grid. This platform will help tourists plan their visits more efficiently while serving as a valuable resource for researchers.

Overall, the Union Government has positioned tourism as a central driver in India’s future development architecture. If implemented effectively, this smokeless industry could generate employment for millions and transform India into a comprehensive, sustainable and culturally rich global destination.