Key Government Initiatives for Tourism Promotion

India is actively promoting tourism in 2026 by focusing on infrastructure upgrades, GST relief for hospitality, and strategic policies to attract global travelers, with the sector contributing nearly 7–8% to India’s GDP and emerging as a major engine for employment and regional development.

Union Budget 2026 Priorities
- Simplification of GST for hotels and restaurants.
- Granting infrastructure status to tourism projects for easier financing.
- Special support for MSMEs in travel and hospitality.

Hotel Capacity Expansion
- Focus on building more rooms in Tier II and Tier III cities to meet rising demand.
- Recognition of hotels as long-term economic infrastructure to attract investment.

Strategic Transformation Beyond Recovery
- Tourism is no longer seen as needing short-term stimulus but as a growth driver.
- Post-pandemic demand has stabilized into a sustained cycle, boosting employment and regional development.

Major Tourism Promotion Themes
- Cultural Heritage: Leveraging India’s UNESCO World Heritage sites (e.g., Gangaikonda Cholapuram, Hampi, Jaipur City).
- Spiritual Tourism: Expanding circuits like the Ramayana Circuit and Buddhist Circuit to attract international pilgrims.
- Eco & Adventure Tourism: Promoting destinations in the Himalayas, Kerala backwaters, and wildlife sanctuaries.
- Medical Tourism: Positioning India as a hub for affordable, high-quality healthcare.

Economic Impact
- Tourism contributes 7–8% of India’s GDP and is a major source of foreign exchange earnings.
- Provides millions of jobs, especially in rural and semi-urban regions.
- Expected to grow rapidly with government support and rising global interest in India as a travel destination.

Outlook
With policy reforms, infrastructure expansion, and global marketing campaigns, India is positioning itself as a top global tourism destination. The focus in 2026 is on quality infrastructure, sustainable growth, and diversified offerings to attract both domestic and international travelers.