Budget 2026: Tourism gets boost with seaplane manufacturing, Buddhist Circuits & hiking trails in Himachal, Kashmir

To give fillip to the government’s plans of promoting tourism, Finance Minister Nirmala Sitharaman, while present the Budget FY27, proposed manufacturing of seaplanes, development of key archeological sites and Buddhist circuits in North East India.

Shares of EaseMyTrip, ITC Hotels and other travel stocks jumped up to 9% on Wednesday after Finance Minister Nirmala Sitharaman's announcements for the tourism sector. Shares of Indian Hotels Company rose 1%, while EIH gained 2%. On the travel services side, Easy Trip Planners surged 9%, emerging as the top gainer in the pack. Mahindra Holidays rose 3%. In contrast, Thomas Cook (India) slipped 2%, reflecting some profit-taking after recent gains, even as the broader policy direction remains supportive for organised travel companies.

"The announcement to focus on the National Institute of Hospitality, guide upskilling with IIM, and experiences like trekking and hiking shows a strategic shift from volume to quality in tourism. By bringing government, industry, and communities together, we can strengthen skills, uplift service standards, and unlock even greater sustainable growth for local economies and global travellers alike," said Rikant Pittie, CEO and Co-Founder of EaseMyTrip.


Meanwhile, MakeMyTrip said the Budget underlines the government’s continued commitment to positioning travel and tourism as a key engine of long-term growth.

“The rationalisation of TCS on overseas tour packages is a welcome step that addresses upfront liquidity impact on Indian outbound travellers," Rajesh Magow, Chair, FICCI Tourism Committee and Co-founder & Group CEO of the travel firm said.

The company also pointed out that sustained infrastructure-led spending has been instrumental in driving the expansion of domestic tourism and said it was encouraging to see this thrust continue.

"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," he added.

Three major announcements:

• National Institute of Hospitality to be setup by upgrading the existing National Council for Hotel Management and Catering Technology.
• Pilot scheme for upskilling 10,000 guides in 20 tourist sites through a standardized, high-quality 12-week training course
• To develop 15 archeological sites including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace into vibrant, experiential cultural destinations.

Buddhist circuits in NorthEast:

While presenting the Budget, Nirmala Sitharaman proposed a Scheme for Development of Buddhist Circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura.

"North-Eastern Region is a civilizational confluence of Theravada and Mahayana/Vajrayana traditions. I propose to launch a Scheme for Development of Buddhist Circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura. The Scheme will cover preservation of temples and monasteries, pilgrimage interpretation centers, connectivity and pilgrim amenities," said Sitharaman.

All Budget announcements for tourism sector:

• To strengthen the sector, the government plans to set up a National Institute of Hospitality by upgrading the National Council for Hotel Management and Catering Technology, creating a bridge between academia, industry and government.
• A pilot skilling programme will be launched to train 10,000 tourist guides across 20 iconic destinations through a standardised, high-quality 12-week hybrid course in collaboration with an Indian Institute of Management.
• A National Destination Digital Knowledge Grid will be established to digitally document sites of cultural, spiritual and heritage importance, generating new employment opportunities for local researchers, historians, content creators and technology partners.
• Ecologically sustainable trekking and hiking infrastructure will be developed, including mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, as well as trails in Araku Valley in the Eastern Ghats and Podhigai Malai in the Western Ghats.
• Turtle trails will be created along key nesting sites in coastal Odisha, Karnataka and Kerala, while bird-watching trails will be developed around Pulicat Lake in Andhra Pradesh and Tamil Nadu.
• India will host the first Global Big Cat Summit this year under the International Big Cat Alliance, bringing together heads of government and ministers from around 95 countries to deliberate on collective conservation strategies.
• Under heritage and culture tourism, 15 archaeological sites—including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur and Leh Palace—will be developed into vibrant, experiential cultural destinations.
• Excavated landscapes will be opened to the public through curated walkways, while immersive storytelling tools and technologies will be introduced to support conservation labs, interpretation centres and tour guides.

What happened in last Budget?

In the previous Budget, the government had earmarked ₹2,541.06 crore for the tourism sector in FY26, marginally higher than the Budget Estimate of ₹2,479.62 crore for FY25. However, the Revised Estimate for FY25 stood significantly lower at ₹850.36 crore, reflecting rephasing of expenditure and delays in project execution during the year.

In Budget FY26, Sitharaman positioned tourism as a key engine of employment-led growth, emphasising destination development, improved connectivity and greater private participation. The Budget reiterated the government’s focus on enhancing India’s global tourism appeal and boosting inbound travel.

A key announcement in Budget 2025–26 was a challenge-based programme to develop 50 tourist destinations in partnership with state governments. The initiative aims to create world-class infrastructure, improve last-mile connectivity and ensure professional destination-level management. The Centre also proposed performance-linked incentives for states to encourage efficient maintenance and long-term sustainability of tourism assets.

The Budget also continued strong support for Swadesh Darshan 2.0, the revamped destination-centric tourism scheme, with an allocation of ₹1,900 crore for FY26. The scheme focuses on sustainable and responsible tourism through thematic circuits such as Buddhist, Ramayana, tribal and coastal tourism. As of the end of FY25, 34 projects worth ₹793.2 crore had been approved under Swadesh Darshan 2.0, including a ₹165.44 crore Buddhist meditation and experience centre at Bodh Gaya in Bihar.

Official data showed a strong recovery in tourism activity. Foreign Tourist Arrivals (FTAs) stood at 99.52 lakh in 2024, while around 56 lakh foreign tourists visited India between January and August 2025. Domestic tourism continued to dominate, with 303.59 crore domestic tourist visits recorded up to August 2025. Between November 1, 2024 and November 30, 2025, around 31.74 lakh e-tourist visas were issued.