Ahead of the Union Budget 2026, the Hotel Association of India (HAI) has called on policymakers to prioritise sector-specific reforms to drive growth and strengthen resilience in the hospitality sector. The industry body reiterated its long-standing demand for infrastructure status and extension of industry benefits to hotels.

Sharing the hospitality industry’s expectations, HAI President K B Kachru said the hotel sector deserves due recognition for its significant contribution to GDP, employment generation, and foreign exchange earnings. Kachru, who is also Chairman, South Asia, Radisson Hotel Group, urged policymakers to address structural challenges impacting the sector’s growth.

“The hotel sector should be given due recognition for its significant contribution to GDP, jobs, and foreign exchange earnings. The key policy interventions are according the infrastructure status and allowing industry benefits to hotels,” Kachru said in a statement.

He noted that granting a harmonised infrastructure status to the hotel industry would enable easier access to finance, longer loan tenures, and lower interest rates, helping reduce project delays caused by funding constraints. According to Kachru, this would also encourage fresh investments and unlock the sector’s full potential to generate employment, supporting India’s vision of an Aatmanirbhar Viksit Bharat.

Kachru further emphasised the need to improve the ease of doing business by reducing the number and cost of approvals, NoCs, and clearances required to build and operate hotels. “A single-window clearance mechanism is a provision that requires urgent attention. Reinstating the rewards scheme for forex earnings and offering higher rates of depreciation for hotels are also recommended,” he added.

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