Indian tourism sector hopes for big changes in Union Budget

Business Jan 14, 2026

India's tourism industry is eyeing some much-needed reforms in the upcoming Union Budget.
The sector, worth $22 billion now, could hit $34.1 billion by 2029 and create 53 million jobs, according to industry projections.
But high GST rates and tricky paperwork are making things tough for travel, hospitality, and restaurant businesses.

What the industry wants next

Tourism leaders are asking for "industry status" to help them get loans more easily and at better rates.
They also want GST to be simpler and fairer across states, since patchy policies make growth uneven.
Plus, there's a push for more hotel infrastructure beyond just popular spots—and a growing focus on sustainable, experience-driven travel that diversifies demand beyond the usual tourist trails.