The Union Budget 2026–27, presented by Nirmala Sitharaman, has positioned tourism as a core pillar of India’s long-term economic development, shifting focus from short-term promotion to capacity building, infrastructure and global competitiveness. The announcements combine domestic tourism investments with reforms aimed at easing outbound travel, education and medical mobility.
A major boost for outbound travel comes through the rationalisation of Tax Collected at Source. TCS on overseas tour packages has been reduced to a uniform 2 per cent, while remittances under the Liberalised Remittance Scheme for education and medical purposes have also been lowered to 2 per cent, easing upfront costs for travellers and families.
On the domestic front, the government unveiled plans for a National Destination Digital Knowledge Grid to catalogue India’s cultural and heritage assets. The Budget also proposed developing 15 key archaeological sites into experiential destinations aligned with global standards. Complementing this, an integrated East Coast Industrial Corridor with tourism nodes and electric mobility aims to link regional development with sustainable tourism growth.
