Budget 2026: 'Grant infrastructure status to hospitality, restore GST input tax credit,' Radisson MD's wishlist for FM

As the Union Budget 2026 approaches, India's hospitality sector is seeking a clear policy reset, arguing that sustained growth now depends less on demand creation and more on how the sector is recognised within the broader economic framework.

Ahead of the Budget, Nikhil Sharma, Managing Director & COO, South Asia, Radisson Hotel Group, said tourism and hospitality had reached a "critical inflection point" and called for structural reforms that treat hotels as economic infrastructure rather than discretionary consumption.

"As India approaches the Union Budget 2026, tourism and hospitality are at a critical inflection point. With the sector contributing nearly 7–8% to India's GDP, demand is deepening across domestic travel, religious tourism, weddings, MICE, and medical travel," Sharma said. "However, sustaining this momentum requires policy frameworks that recognise hospitality as productive economic infrastructure rather than discretionary consumption."

The Radisson MD positioned hotels as foundational to local economies, particularly outside major cities. "Hotels are anchors of local ecosystems, generating employment, supporting MSMEs, and enabling destination-led growth, particularly in Tier II and Tier III markets," he said.

At the centre of Radisson's budget wishlist is a long-standing industry demand. "Granting infrastructure status to hospitality would unlock long-term financing, improve capital efficiency, and accelerate quality development beyond metros," the top executive said.

He added that financing reform must be paired with continued public investment. "This must be complemented by continued investment in connectivity aligned with tourism clusters, alongside GST rationalisation and restoration of input tax credit to improve competitiveness and affordability," he said.

Sharma also pointed to the need for sharper policy targeting to raise the sector’s economic yield. "Targeted incentives for high-yield segments, stronger global promotion, support for sustainable operations, and hospitality-specific skilling initiatives can significantly enhance economic impact," he said.

A reform-led Budget that prioritises consistency, sustainability, and competitiveness can firmly position hospitality as a powerful engine of inclusive, long-term nation-building, the Radisson MD said in his concluding remarks. 

Finance Minister Nirmala Sitharaman will present the Union Budget on February 1.