The Union Budget 2026–27 reflects a growing recognition of tourism and hospitality as key enablers of experience-led travel in India. With a strong emphasis on infrastructure development, skill enhancement, and institutional support, the budget sets a positive direction for long-term destination growth.

For the wellness hospitality sector, the continued focus on India’s traditional systems such as Ayurveda and Yoga signals a renewed intent to strengthen tourism offerings rooted in authenticity, wellbeing, and mindful engagement with cultural and natural heritage.

Sharing its post-budget perspective, Poonam Singh, Dharana at Shillim stated: "The Union Budget 2026–27 reflects a considered recognition of tourism and hospitality as important enablers of experience-led travel. The emphasis on infrastructure development, skill enhancement, and institutional support, alongside a continued focus on India's traditional wellness systems such as Ayurveda and Yoga, signals an intent to strengthen destinations grounded in authenticity, wellbeing, and a mindful engagement with cultural and natural heritage.

For the wellness and hospitality sector, these measures create opportunities to advance sustainable tourism, enable meaningful regional employment, and elevate service standards, reinforcing India's position as a globally credible destination for holistic wellbeing and conscious travel.”

The perspective underlines how policy support can encourage responsible investment, generate regional employment, and raise service standards across wellness-led destinations. As conscious travel continues to gain traction globally, such measures are expected to further strengthen India’s standing as a trusted hub for holistic wellbeing experiences. 

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

The Union Budget 2026 has drawn strong reactions from leaders across hospitality, tourism, real estate and allied sectors, with a common emphasis on skill development, destination-led growth and improved regional connectivity as critical levers for India’s next tourism expansion phase.

Yogesh Mudras, Managing Director, Informa Markets in India (organisers of SATTE), highlighted the Budget’s long-term approach to strengthening tourism fundamentals.

"The Union Budget 2026 lays out a forward-looking roadmap with a clear focus on infrastructure, economic growth, and better regional connectivity. One of the standout announcements for the sector is the plan to set up a National Institute of Hospitality, a move that could really strengthen India's tourism and hospitality ecosystem in a meaningful way. By bringing academia, industry, and government onto the same platform, the institute has the potential to create a skilled workforce that matches the evolving expectations of both domestic and international travellers. For hospitality businesses, this could mean higher service standards, smoother operations, and a more reliable long-term talent pipeline. In the bigger picture, initiatives like this tend to build investor confidence, encourage the development of new hotels, resorts, and tourism infrastructure, and further support India's positioning as a global travel destination. While the industry was also hoping for wider policy measures to make investments easier and simplify operations, this strong push toward skill development still sets a solid foundation for more structured, long-term growth in tourism and hospitality."

A key Budget theme has been the structured development of 50 destinations in partnership with states, supported by enhanced connectivity to regions such as Himachal Pradesh and Kashmir. This, industry leaders note, signals a deliberate effort to decentralise tourism demand beyond saturated metros and established leisure hubs.

Nandini Taneja, Chief Executive Officer, Bhumika Enterprises, sees the Budget as particularly relevant for emerging cities and inclusive growth.

"The proposal to establish a National Institute of Hospitality is a timely step for India's hospitality sector, especially in Tier-2 cities emerging as key travel and business hubs. By bridging academia, industry, and government, the institute can help create a skilled local workforce — critical for the growth of hotels and tourism-led developments. Equally encouraging is the Budget's push for women-led entrepreneurship through community-owned SHE-Marts, which will give SHG-linked women structured retail access and a pathway to enterprise ownership. This strengthens grassroots economic participation while supporting more inclusive local economies."

She added that,

"Together, stronger talent pipelines and inclusive economic initiatives will enhance service standards, improve operational efficiency, and boost investor confidence, accelerating hospitality-led growth in emerging cities and preparing them for rising domestic and international tourism demand."

Framing the Budget through a market-expansion lens, Ambika Saxena, CEO, TWH Hospitality, emphasised tourism’s elevation as a core economic driver.

"The Budget signals a clear shift in positioning tourism as a core economic growth driver rather than a peripheral sector. The structured development of destinations, along with improved connectivity, will expand India's viable hospitality markets beyond established hubs. With stronger destination infrastructure and a more robust talent pipeline, the industry gains better long-term demand visibility, investment confidence, and the ability to scale sustainably."

From a broader travel and enterprise perspective, Mr. Aditya Pande, Group Chief Executive Officer, InterGlobe Enterprises, welcomed the Budget’s alignment with long-term national goals.

"The Union Budget outlines a strong, forward-looking roadmap toward a Viksit Bharat by 2047. We welcome the government's continued focus on strengthening India's travel, tourism, and hospitality ecosystem through improved connectivity, accessibility, and destination infrastructure. The emphasis on skill development, heritage, and ecotourism reflects a deep understanding of the sector's economic potential. These measures will boost demand, support local economies, and strengthen India's position as a global hub for high-quality hospitality and travel."

Beyond hospitality, the Budget’s ripple effects are also being felt in retail and lifestyle sectors. Abhinav Kumar pointed to the alignment between manufacturing, logistics and brand-led growth.

"The Union Budget 2026-27 lays out a forward-looking path for India's retail and fashion ecosystem, reinforcing domestic manufacturing, innovation and brand competitiveness. Initiatives like the integrated textile programme, mega textile parks, MSME support and improved logistics create a stronger, more resilient supply chain for domestic and global brands in our portfolio. By fostering expansion into Tier-II and Tier-III cities, enabling digital and financial infrastructure and supporting high-quality production, the Budget provides the roadmap for Brand Concepts to scale efficiently, innovate responsibly and strengthen India's position as a hub for future-ready fashion and lifestyle businesses"

Taken together, industry reactions suggest that while stakeholders were hoping for deeper policy simplification and faster investment clearances, the Budget’s focus on skills, destination development and connectivity lays a credible foundation for decentralised, sustainable growth across India’s tourism and hospitality landscape.