Union Budget 2026: 'Tourism as an integrated growth engine,' industry backs FM's services push

Budget 2026 | Union Finance Minister Nirmala Sitharaman's presented her ninth consecutive Budget in the Parliament on February 1 2026. The Finance Minister emphasised that the government has consistently chosen reform over rhetoric and addressed global uncertainty.

The Budget 2026-27 signals a broader push to position services, tourism and technology as long-term growth drivers, with industry leaders highlighting its emphasis on employment generation, digital adoption and skill development. Measures announced for tourism, artificial intelligence and workforce readiness are being seen as steps toward building a more integrated and resilient services economy.

Commenting on the tourism-focused initiatives, Arun Batra, Managing Director, Ebix Travels, and Global CHRO, Ebix, said, “The Budget reflects a clear shift toward viewing tourism as an integrated growth engine that spans inbound, outbound, and domestic travel. By acknowledging its role in employment generation, foreign exchange earnings, and local economic development, the policy direction provides a stronger base for long-term sectoral growth".

Echoing similar views on tourism-led growth, Rajesh Magow, Chair of the FICCI Tourism Committee and Co-founder & Group CEO of MakeMyTrip, said, “The Budget reinforces the government’s sustained focus on travel and tourism as a long-term growth driver. The rationalisation of TCS on overseas tour packages is a welcome step that addresses upfront liquidity impact on Indian outbound travellers.

He also noted that the government’s infrastructure-led investments have played an important role in supporting the growth of domestic tourism, and it is encouraging to see this momentum being sustained. Continued focus on regional connectivity and destination development, along with an emphasis on skilling and the creation of a national digital repository for destinations, will help improve destination discovery and enhance the overall traveller experience.”

Technology and artificial intelligence also featured prominently in the Budget narrative, particularly in the context of governance and public service delivery.

Ajay Trehan, CEO and Founder of AuthBridge, said, “The Budget’s focus on AI as a force multiplier for governance and public service delivery reflects how deeply technology is now shaping India’s services economy. The formation of a high-powered committee to assess AI’s impact on growth, jobs, and service sectors is a timely step toward building a structured and future-ready digital ecosystem.

From a consumer and retail perspective, the Budget’s emphasis on tourism and infrastructure is expected to have a ripple effect across regions.

Sonaal Goel, Co-Founder of Salty, said, “The Union Budget 2026-27 presents a strong growth roadmap by combining infrastructure expansion, tourism-led employment, and skill development with fiscal discipline. Initiatives such as the National Institute of Hospitality, grassroots skilling programmes, and the creation of a digital tourism knowledge grid reflect a clear commitment to building both economic opportunity and service excellence".

The hospitality and food services segment is also expected to benefit from higher travel demand.

Vikas Narula, Co-Founder of Depot48, said, "The Budget’s tourism push is encouraging for hospitality and F&B. Lower TCS on overseas tours will drive travel demand, while medical tourism hubs create a strong new growth segment. The National Institute of Hospitality guides training and development of cultural sites and eco-tourism trails, showing a clear focus on skills and experience-led travel. Together, these measures will boost footfalls, create jobs, and strengthen the services ecosystem.”