Representative images. | Photo credit: Getty Images/iStockphotos
With a focus on harnessing tourism to create jobs and boost local economies, the Union Budget 2026-27 announced a pilot program to upskill 10,000 tour guides in 20 iconic tourist locations and set up a National Institute of Hospitality to train professionals in the industry.
Union Finance Minister Nirmala Sitharaman also said that a National Destination Digital Knowledge Grid will be set up to digitally document all places of cultural, spiritual and historical importance.
To boost tourism in the Northeast, Ms. Sitharaman has also proposed a scheme to develop Buddhist circuits in several states of the region. These states include Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura. “The program will be about preservation of temples and monasteries,” she said, adding that the initiative aims to highlight the rich spiritual heritage of the Northeast.
In terms of budgetary allocation, there has been a marginal decrease in the allocation from ₹2,541.06 crore in 2025–26 to ₹2,438 crore in 2026–27. The revised estimate for 2025-26 was ₹1,310.30 crore.
In her budget speech, Ms. Sitharaman said that tourism has the potential for job creation, forex earnings and expansion of the local economy. It proposed the establishment of a National Hospitality Institute by modernizing the existing National Council for Hotel Management and Catering Technology. “It will act as a bridge between academia, industry and government,” she said. “I am also proposing a pilot program to upskill 10,000 tour guides at 20 iconic tourist spots through standardized, high-quality 12-week training in a hybrid mode in collaboration with the Indian Institute of Management.”
The budget also announced a National Destination Digital Knowledge Grid to digitally document significant places. This initiative is expected to create a new ecosystem of jobs for local researchers, historians, content creators and technology partners.
The budget, which focuses on promoting cultural heritage, has announced the development of 15 archaeological sites including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur and Leh Palace into vibrant, experiential cultural destinations.
The excavated landscapes will be made accessible to the public through landscaped walkways. Immersive storytelling skills and technologies will be introduced to assist conservation laboratories, interpretive centers and guides.
It also announced the development of environmentally sustainable hiking trails that provide world-class trekking and hiking experiences. The initiative includes mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir; the Araku Valley in the Eastern Ghats; Podhigai Malai in the Western Ghats, turtle trails along key nesting areas in the coastal regions of Odisha, Karnataka and Kerala; and bird watching trails along the Pulicat Lake on the Andhra Pradesh-Tamil Nadu border.
While the hospitality industry largely welcomed the proposals, many said they had hoped for more initiatives to boost international tourism.
Rajiv Mehra, General Secretary, Federation of Indian Tourism and Industry Associations (FAITH), said, “We welcome the government’s initiatives to develop new adventure trails across states, focus on upskilling tour guides, use of artificial intelligence to enhance tourism destinations and reduction of TCS (Tax Selected at Source) on overseas travel. These are progressive steps for the sector.”
“However, we expected a clear budget allocation to promote international tourism, which seems to have been missed. Increasing India’s visibility in global markets and soft branding measures are essential to boost inbound tourism,” he said.
Published – 01 Feb 2026 21:20 IST
