As Union Budget 2026 introduces a wide range of tourism-focused announcements, leaders from India’s hospitality and travel industry have shared optimistic views on the government’s vision to strengthen the sector through connectivity, skilling, sustainability and destination development.

Rahool Macarius, Market Managing Director, Eurasia, Wyndham Hotels & Resorts, welcomed the Budget’s emphasis on cultural and regional tourism. He said,

"We appreciate the government's focus in the Union Budget 2026, which reinforces India's commitment to strengthening the hospitality and tourism sector. By reimagining heritage sites, supporting Buddhist circuits, and enhancing connectivity through initiatives such as the Green High-Speed Rail Network, the Budget will increase tourism demand and attract more visitors to culturally, historically, and spiritually significant cities. This, in turn, will strengthen tourism in Tier-II and Tier-III regions, providing a strong platform for hospitality brands to expand alongside India's growth trajectory. Initiatives such as world-class hospitality talent hubs, professional guides, and structured skilling programs are expected to elevate visitor experiences, extend stays, and support local economies. Coupled with digital destination initiatives and sustainable eco-trails, these measures will enhance service standards, create dignified livelihood opportunities for young talent, and give a meaningful boost to the overall growth and competitiveness of India's hospitality sector."

Richa Adhia, Managing Director, Eight Continents Hotels & Resorts, highlighted the Budget’s focus on workforce development and sustainable tourism. She stated that the government’s efforts to create dignified livelihoods, develop hospitality talent hubs and invest in professional guides will significantly raise service standards while strengthening local employment. She also noted that initiatives around heritage revitalisation, eco-trails, digital destinations, adventure and medical tourism are expected to attract global travellers and enhance visitor engagement.

Sharing a detailed industry perspective, Mr. Sarbendra Sarkar, Managing Director & Founder, Cygnett Hotels & Resorts, said Budget 2026 presents a future-ready roadmap for tourism and hospitality. He emphasised that talent development, digital destination platforms, creator-led promotion and improved connectivity through green high-speed rail corridors will boost visibility, travel affordability and inter-city mobility. He added that initiatives covering eco-friendly mountain trails, Buddhist circuits, heritage revitalisation, medical tourism and Purvodaya-led development will diversify tourism beyond traditional markets and support balanced, sustainable growth.

Mr. Sumit Mitruka, Founder & CEO, Summit Hotels & Resorts, pointed to the transformative impact of high-speed rail connectivity to Siliguri and the Northeast. He noted that faster and more reliable access would reduce travel fatigue, encourage longer stays and support off-beat destinations. He also highlighted that the development of structured trekking routes could unlock experiential tourism while preserving ecological integrity and generating livelihoods for local communities.

Mr Ritwik Khare, Founder and CEO of ELIVAAS, described Budget 2026 as a growth-driven vision that aligns infrastructure, mobility and affordability. He said the announcement of seven high-speed rail corridors will change travel behaviour by enabling shorter and more frequent trips, while the reduction in overseas tour package TCS will improve overall travel sentiment. According to him, these measures support the growing demand for private villas and flexible stay formats across regions.

Offering a regional perspective, Mr. Bhavik Sheth, Chief Operating Officer, Evoke Experiences, welcomed the focus on upgrading Indus Valley Civilisation sites such as Dholavira and Lothal. He said that structured investment in interpretation centres and visitor infrastructure can position Gujarat as a global heritage destination and open opportunities for immersive, experience-led tourism rooted in history and local communities.

Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts, observed that Union Budget 2026 reflects a shift from destination-led tourism to purpose-driven journeys. He highlighted the emphasis on wellness, spiritual circuits, nature-led travel, adventure tourism and regional connectivity. He added that investments in hospitality education, guide skilling and digital knowledge platforms will raise service standards and support responsible, community-led tourism growth.

Overall, industry leaders agree that Budget 2026 creates a strong foundation for long-term growth in India’s hospitality and tourism sector, driven by connectivity, capability building and sustainable development.

The United States has announced a significant trade agreement with India that will reduce tariffs on Indian goods to 18%, down from the earlier 50%, in exchange for India agreeing to halt purchases of Russian oil.

US President Donald Trump shared the announcement on social media after a call with Prime Minister Narendra Modi, stating that India would now source oil from the United States and potentially from Venezuela. A White House official confirmed that Washington would remove a punitive 25% duty imposed over India’s continued Russian oil imports, which had been added on top of a reciprocal tariff structure.

Prime Minister Modi welcomed the move, calling the revised tariff rate a positive step for Indian exporters. In a post on X, he said India was grateful for the reduction, noting that “Made in India” products would now face lower duties in the US market.

The announcement triggered a strong rally in Indian stocks listed in the US. Shares of Infosys, Wipro, and HDFC Bank closed sharply higher, while the iShares MSCI India ETF also gained, reflecting renewed investor confidence. Indian markets, which had struggled under the weight of higher tariffs and foreign investor outflows in 2025, responded positively to the development.

According to Trump, India has also committed to buying over $500 billion worth of US energy, including oil and coal, along with technology, agricultural products, and other goods. He added that India would move towards reducing both tariff and non-tariff barriers on American products.

While the announcement outlined broad commitments, several operational details remain unclear. The White House has not yet issued a formal proclamation or Federal Register notice specifying when the new tariff rates will take effect or the timeline for India’s exit from Russian oil purchases. Indian ministries have also not released an official statement so far.

Economists believe the agreement brings India closer in line with other Asian economies, where tariff rates typically range between 15% and 19%. Analysts say the deal removes a major drag on Indian exports and could provide stability to the rupee, which had come under pressure amid global trade tensions.

The deal comes shortly after India concluded a landmark trade agreement with the European Union, covering nearly 97% of traded goods by value. Together, these developments mark a shift towards deeper trade integration for India at a time of global economic uncertainty.

India, the world’s third-largest oil importer, has relied heavily on discounted Russian crude since 2022. However, recent data shows that imports from Russia have already begun to slow, suggesting that New Delhi has been preparing for a transition in its energy sourcing strategy

Tamil Nadu witnessed a major boost to its tourism and hospitality sector with the signing of Memoranda of Understanding worth Rs 22,700 crore at the Tamil Nadu Global Tourism Summit 2026, held at Mamallapuram. The wide-ranging investments are set to strengthen tourism infrastructure across the state, covering hotels, amusement parks, sports facilities, heritage attractions, and healthcare projects.

The announced investments include new hotels, a multipurpose sports stadium, sports recreation parks, amusement parks, a heritage theme park in Chengalpattu, and a ropeway project in Salem, among others. These developments are expected to enhance Tamil Nadu’s appeal across leisure, heritage, spiritual, and experiential tourism segments.

In a first-of-its-kind move, Tamil Nadu Chief Minister M.K. Stalin announced the formation of a dedicated Tourism Governing Body for Mamallapuram. The special body will oversee basic infrastructure works and tourist facilities in the heritage town. An initial allocation of Rs 100 crore has been announced for this initiative.

A key highlight of the summit was the signing of an MoU with Vietnam’s largest conglomerate, Vingroup, the parent company of VinFast. The group will establish VinWonder amusement parks and a luxury hotel in Tamil Nadu. The state government also signed an MoU with Arenaone to develop sports and recreation centres with an investment of Rs 1,400 crore, creating employment for 2,100 people.

SPR Group signed an MoU worth Rs 500 crore to set up a multi-purpose convention centre in the heart of Chennai, strengthening the city’s position as a major events and business tourism destination.

Several major hotel projects were announced across Tamil Nadu. Sujan Life will invest Rs 500 crore in a wilderness resort in Coimbatore. Brigade Hotels will invest Rs 900 crore in Chennai, while Kodai Heights will invest Rs 300 crore in Kodaikanal. Other notable hotel investments include projects by J Hotels, Giovanni Resorts, Hall Mark Group, Home Trotter, Ampa Group, Ankit Construction, Popeyye Hotel in Tiruppur and Tiruvannamalai, Sangu Chakra Hotels in Ramnad, CGH Heritage Resort, YMRT Hotels in Kanchipuram, Sri Venkateshwara Hotels, Chandrakela Hotel in Tirupattur, Amutha Surabhi in Coimbatore, Ramya Group in Trichy, VGP in Trichy, Birdee Club Hotel in Chennai, Direct Hotels in Thanjavur, Rathna Group in Trichy, Great Lagoon in Coimbatore, and Ascott Hotels. Several other firms also signed MoUs for projects in Nellai, Theni, Kanyakumari and other regions with investments below Rs 50 crore.

Adding further momentum, Amrita Group signed a Rs 3,000 crore MoU with the Tamil Nadu government to develop a heritage theme park in Chengalpattu, which is expected to generate employment for 12,000 people. GRT Hotels & Resorts also signed an MoU worth Rs 300 crore to develop luxury hotels in Coimbatore and Tuticorin.

Beyond tourism and hospitality, L&T announced plans to set up a multi-speciality hospital at Siruseri SIPCOT with an investment of Rs 600 crore. The project, spread across four acres, is expected to create employment for 3,000 people, supporting medical infrastructure and allied tourism opportunities.

The grand event featured an eminent panel of speakers, including Diwan Gautam Anand, Former Executive Vice President, ITC Hotels; Ravi Gosain, President, Indian Association of Tour Operators (IATO); Sumitro Kar, Executive Director, WTTC; Neil Davidson, Territory Director, PADI; Vikram Cotah, CEO, GRT Hotels & Resorts; Michael Dominique, Director, CGH Earth; and Chef Sanjeev Kapoor.

The event also witnessed the participation of senior government officials such as Innocent Divya, Commissioner of Tamil Nadu Tourism and Managing Director of TTDC; Supriya Sahu, IAS, Additional Chief Secretary, Department of Environment, Climate Change and Forests, Tamil Nadu; Pooja Kulkarni, IAS, Special Secretary to Government, Finance Department and CEO, TNIDB; and Dr. K. Senthil Raj, IAS, Managing Director, SIPCOT.

With these large-scale commitments, Tamil Nadu is set to witness a new phase of tourism-driven growth, strengthening employment, infrastructure, and the state’s overall appeal as a diversified tourism destination.