The hospitality and tourism sector remains one of India’s most labour-intensive and strategically important industries, with significant potential to drive employment, regional development, and foreign exchange earnings. As the sector continues to gain momentum across both domestic and international travel, there is a strong case for structural reforms in Budget 2026.
Recent rationalization within the GST framework has been a welcome step, but several challenges persist, particularly the denial of input-tax credit across certain GST rate bands, at a time when input costs continue to rise. Greater clarity and a more workable credit mechanism would materially improve operational efficiency and financial viability for hotels and resorts across the country.
Another priority for the sector is the long-standing request for recognition as an industry or infrastructure category. Hospitality assets have inherently long gestation periods, and enabling banks and financial institutions to offer more customized, longer-tenor loan products would go a long way in bridging the demand-supply gap for quality tourism infrastructure.
Policy alignment between Central and State authorities, streamlined approvals, and a more coordinated regulatory environment will further strengthen investor confidence and support sustainable expansion.
We remain optimistic that Budget 2026 will build on the sector’s positive momentum and contribute meaningfully to India’s emergence as a premier global tourism destination.
