As the Union Budget 2026 approaches, the travel, tourism and hospitality industry is watching closely for policy measures that can support sustained growth, improve ease of doing business, and strengthen India’s position as a global destination. From infrastructure status and GST rationalisation to skill development, sustainability incentives, and better connectivity, industry leaders across hotels, F&B, travel and tourism have shared their key expectations. Here are their views on what Budget 2026 should deliver for the sector.
Shwetank Singh, Executive Director, Chalet Hotels Limited
“As we approach the 2026 Budget, India’s hospitality sector waits with measured optimism. We’ve created 46.5 million jobs and are projected to support 64 million by 2035, yet do not get classified as infrastructure which is a looming constraint on scale. The 2025-26 Union Budget extended infrastructure status to hotels in 50 select destinations, but the sector needs comprehensive recognition. Infrastructure classification unlocks soft financing, lower utility tariffs and rationalized property taxes, support that is routinely granted to highways and ports, but withheld from hotels despite equivalent capital intensity. Equally critical is bringing tourism into the concurrent list. Policy coordination between center and states has long remained fragmented. To ensure seamless implementation across diverse destinations, tourism, and by extension, hospitality requires constitutional alignment within shared legislative space. This will further help in the holistic development of the destination giving a seamless experience to the traveller. The pathway to $1 trillion contribution to the GDP from the sector would then be closer to reality.” – Shwetank Singh, Executive Director, Chalet Hotels Limited.
Manbeer Choudhary, CMD, Noormahal Group
The Union Budget 2026 presents a defining opportunity for India’s hospitality industry. Our sector has shown exceptional resilience over the past three years, making substantial contributions to GDP, employment, and foreign exchange earnings. To fully realize this potential, strategic policy reforms are essential. Our foremost priority is securing infrastructure status for hotels.
This designation would fundamentally transform our ability to access capital on favorable terms, enabling faster capacity expansion despite robust demand from leisure and corporate segments. Granting industry status to hospitality would be a meaningful step, helping hotels, especially small and mid-sized properties, access institutional finance, reduce borrowing costs, and invest in long-term infrastructure.
Currently, funding challenges and project delays are constraining growth.Equally critical is reducing Goods and Services Tax (GST) rates, particularly on accommodation, food & beverage, and allied services. This could stimulate consumer demand, improve affordability, and accelerate recovery in a segment that’s crucial for tourism, employment, and economic growth. We also advocate for targeted policy support to boost competitiveness and operational sustainability for hotels across India. Additionally, implementing a unified single-window clearance system to simplify the maze of approvals and NOCs across multiple departments would drive down costs and timelines considerably.
Market conditions are highly favorable: occupancy levels and room rates are approaching historical peaks, and domestic travel appetite remains strong. With supportive budget measures including reinstated forex incentives and enhanced depreciation rates, the hospitality sector is positioned to significantly amplify employment opportunities and become a stronger pillar of India’s economic expansion.
Ranjit Batra, CEO Ventive Hospitality Limited
The hospitality sector eagerly awaits Union Budget 2026 to fuel hospitality & tourism growth through infrastructure boosts, streamlined regulations, and higher FSI in emerging cities and leisure destinations like Andaman & Nicobar and North-East states. Access to long-tenure financing, Viability Gap Funding, and targeted incentives for luxury assets is essential to offset rising costs and attract sustained FDI-led premium demand. Rationalising GST, including treating services to foreign nationals as deemed exports, will strengthen global competitiveness and curb international event outflows. Coupled with skilling incentives and green building tax benefits, these measures will accelerate job creation, sustainability, and India’s global tourism stature.
KB Kachru, President, Hotel Association of India (HAI) and Chairman – South Asia, Radisson Hotel Group
For the upcoming Union Budget, Hotel Association of India (HAI), the national body for Indian hotels, urges policymakers to prioritise sector-specific reforms to drive growth and resilience in the hospitality sector. 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 of infrastructure status and allowing of industry benefits to hotels. This will encourage investments in the sector and unleash the full potential of hotels to generate employment and play the desired role in realising India’s Vision of an Aatmanirbhar Viksit Bharat.
There is a need to further improve the ease of doing business by reducing both- the number and the costs of approvals, NoCs and clearances required to build and operate hotels. A single window clearance mechanism is a provision that requires urgent attention. Re-instating the rewards scheme for FX earnings, higher rate of depreciation for hotels are recommended. Though not related to the budget, the sector also awaits pragmatic GST reforms.
Surendra Kumar Jaiswal, President, Federation of Hotel & Restaurant Associations of India (FHRAI)
Ahead of the Union Budget 2026–27, the hospitality sector is looking for practical policy support to sustain growth and strengthen tourism-led development. The decision to extend infrastructure status to hotels in 50 select tourist destinations is a welcome step, and the industry hopes this support is expanded across India to unlock its full potential. Granting infrastructure status to hotels nationwide will help unlock long-term, affordable financing, especially for projects in Tier II and Tier III destinations, heritage towns, and emerging tourist centres. Tax incentives for new hotels and higher depreciation rates can encourage fresh investments and timely up gradation of assets, improving overall service quality. The Budget should also support green and energy-efficient hotels through targeted incentives, helping the industry adopt sustainable practices while managing costs. Ease of doing business measures on simplifying approvals and licensing through single-window clearances, remains crucial. GST rationalisation will improve affordability and competitiveness. In addition, stronger marketing and promotion of Indian destinations, along with better last-mile and air connectivity, can help spread tourism more evenly and support inclusive economic growth across regions.
Salim Shaikh, Co Founder, Monday Hotels
We look forward to a Union Budget that strengthens India’s position as a leading global travel destination, with increased investment in tourism infrastructure, last-mile connectivity, and urban hospitality development. Simplified licensing, single-window clearances, and access to affordable financing will enable hotel groups like Monday Hotels to expand responsibly and sustainably.
Key priorities for the hospitality sector include:
Sustainability incentives, including solar open access and energy-efficient infrastructure for mid-scale and large hotels.
Support for hospitality education and skill development to address workforce shortages and enhance service quality.
Policies to attract long-term, patient investors to encourage responsible sector growth.
Tax rationalisation and GST clarity to improve compliance, boost cash flow, and retain tourism revenue within the country.
Promotion of emerging and hidden leisure destinations to diversify travel demand beyond traditional hubs.
Digital transformation and innovation incentives to enhance operational efficiency and guest experiences.
Implementing these measures will help the hospitality industry grow sustainably, generate employment, and deliver memorable experiences to guests, while enabling India to maximize its tourism potential and strengthen its global competitiveness.
Vikram Kamat, Chairman and Managing Director, VITSKamats Group
The hospitality sector is one of India’s largest employment generators, yet skilling remains its biggest gap. Under the Skill India Mission, we expect the Union Budget to place stronger emphasis on industry-integrated training, apprenticeship-led learning, and region-specific hospitality skill centres. Structured incentives for hotels and restaurants that invest in workforce training, along with digital and soft-skill upskilling, will not only enhance service standards but also create sustainable livelihoods for India’s young talent. A future-ready hospitality workforce is essential for India’s tourism growth and global competitiveness. Kamats Hospitality Academy Of Skill under Our Diploma Programs are affiliated with the Maharashtra State Board of Skill, Vocational Education and Training also Our Degree Program is affiliated with Mumbai University – Bachelor of Vocation put together has trained over 300+ students till date and continues to contribute towards filling the gap significantly in the Hospitality sector.
Ajay K. Bakaya, Chairman, Sarovar Hotels & Director, Louvre Hotels India
As India’s hospitality sector continues on a strong growth trajectory—supported by steady economic expansion in the 6–8% range, a stable policy environment, and rising domestic travel demand—the upcoming Union Budget presents an important opportunity to enable long-term, sustainable growth for the industry.
Domestic demand today is clearly outpacing supply, particularly as new hotel development faces challenges such as land acquisition complexities, regulatory approvals, and long project gestation cycles of 5–8 years. In this context, granting infrastructure status to hotels would significantly improve access to long-term financing and catalyse fresh investments, especially across Tier II and Tier III cities where demand is accelerating.
From an operational standpoint, rationalisation of GST—especially delinking GST on food and beverage services from room tariffs—would bring much-needed clarity, simplify compliance, and improve pricing transparency for guests, while supporting hotel profitability and greater formalisation of revenues.
We also expect continued focus on tourism and aviation infrastructure, including new airports and regional connectivity, which will unlock emerging and pilgrimage destinations and deepen travel flows beyond metros. Cities such as Jaipur, Lucknow, Raipur, Ranchi, and other fast-growing regional centres are already witnessing strong demand driven by local populations, banqueting, weddings, and food and beverage consumption.
In addition, greater emphasis on skill development, ease of doing business, and sustainability-linked incentives will strengthen India’s positioning as a competitive global travel destination while supporting large-scale employment generation.
Such policy measures will not only accelerate industry growth but also enable hotel operators to enhance guest experiences, develop new destinations responsibly, and contribute meaningfully to India’s broader economic and tourism objectives.
Rajat Sethi, Cluster General Manager, Fairmont and Raffles Jaipur
We look forward to the Union Budget 2026 and initiatives to support India’s hospitality segment. Focused investments in infrastructure, training, and skill development will help strengthen the industry. Encouraging sustainable growth through vocational partnerships can empower talent, create employment opportunities, and boost the sector. With the right policy support, the hospitality industry in India has the potential to enhance guest experiences while contributing meaningfully to economic growth.
Pulkit Arora, Director, CYK Hospitalities
“As we approach Budget 2026, the Food and Beverage industry is optimistic that the long-awaited structural alignment will take place. The restoration of Input Tax Credit, the recognition of the hospitality sector as an industry, and the simplification of the licensing process can significantly strengthen operational viability. The food companies will then be able to concentrate on quality, innovation, and consistency rather than dealing with inefficiencies.”
Simran Jeet Singh, Director, CYK Hospitalities
“From the perspective of expansion, brands are prepared for growth while the markets are prepared for consumption. Budget 2026 has the potential to unblock, quicken, and even more smoothly F&B expansion across the different parts of the city by providing clearer leasing frameworks, single-window approvals, as well as uniform commercial policies. Now is the time to make it possible to grow, accompanied by stability and predictability.”
Meenakshi Kumarr, Chef & Founder of Anahata Cafe (Formerly Roots Cafe)
The Union Budget can be a turning point in a definitive manner for women entrepreneurship in India. When women build businesses, their accomplishments extend far beyond just the generation of income, as their endeavors result in employment and economic change at a broader social and cultural front in India. Yet, despite their growing participation, women founders continue to face systemic challenges, particularly in accessing timely finance, structured mentorship, and scalable growth opportunities.
I would like to see the Budget introduce stronger and more accessible support mechanisms for women-led enterprises, especially through collateral-free credit, interest subvention, and simplified compliance and formalisation processes. Many women-led ventures, particularly in food, hospitality, and community-driven businesses, are operating at the grassroots level and require flexible funding models that recognise their realities rather than traditional balance sheets.
Equally critical is investing in the broader ecosystem—skill development, digital enablement, food safety and sustainability training, and easier access to organised markets. With the right tools and guidance, women can scale responsibly from micro-enterprises to resilient and growth-oriented businesses.
The women entrepreneurs in tier 2 and tier 3 cities are full of ambition and creativity. This potential can be unleashed with proper intervention in policy and help them become a part of the development story of the economy of India in a more integrated manner. Empowerment of women entrepreneurs is not just about ‘inclusion; it is about constructing a better economy for the future.
Dinesh Yadav, Founder and MD of Fine Acers
As we approach Budget 2026, the hospitality sector is looking for structural policy support that reflects its growing economic contribution and long-term capital intensity. The industry is experiencing a significant expansion, with the projected CAGR being about 10-11%. This growth is mainly owing to the attraction of domestic tourists, the MICE sector and the swift advent of experiential travel in Tier II and III destinations. On the other hand, if the industry wants to keep the same pace, it needs a complete policy overhaul and not just short-term remedies.
One of the long-awaited measures is to give the whole hospitality industry, rather than just selected parts, the status of an infrastructure. This move would pave the way for the access of long-term and low-cost funding which is vital for the completion of the projects that have long gestation periods. Besides this, the GST reform especially concerning room rates and bundled hospitality services where the high tax rates still pose a threat to price competitiveness and thus indirectly to occupancy-led growth, is peremptory.
Simplifying approvals granting single-window clearances and standardizing compliance procedures across states, which would lead to a significant reduction in the time and cost involved in project execution. Even more, the tourism sector, which has been the main recipient of Budget 2026, can really reposition hospitality not only as a service industry but also as one of the main infrastructure drivers of India’s growth story.
Dhinesh Kumar – Director of Finance, Sheraton Grand Chennai Resort & Spa
Solar Energy: As we head into this year’s Union Budget, our foremost expectation is a strong, sustained policy push for solar energy—the backbone of India’s clean-energy ambitions. Continued rationalization of duties on solar modules and key components, coupled with incentives that boost domestic manufacturing, will be vital for reducing project costs and strengthening supply-chain resilience. We also look forward to measures that enhance grid readiness, expand storage support, and improve access to low-cost, long-tenure financing. A budget that prioritizes scale, innovation, and infrastructure in solar energy can significantly accelerate India’s progress toward its renewable-energy targets while reinforcing investor confidence.
Sandeep Arora, Director, Brightsun Travel, India
With Indians travelling more often and more globally, this Union Budget can significantly improve the economics of travel for Indian consumers and businesses alike. Outbound travel from India has already crossed pre pandemic levels with over three crore Indians travelling abroad annually while inbound interest in India continues to rebuild steadily.
The biggest wins can come from reducing friction through stronger support for air connectivity, smoother visa processes and more flexible bilateral air service frameworks, factors that directly shape both outbound demand and inbound arrivals. India has already expanded digital visa access to over 160 countries and strengthened regional connectivity, which shows that policy-led momentum is possible when processes are simplified.
What the industry now needs is alignment. Better route viability can help airlines add capacity where demand is already visible while value led outbound travel means even small cost or process efficiencies can meaningfully impact booking decisions. Across leisure VFR and student travel segments, intent is strong but conversion still depends on affordability and ease.
India is poised for a future ready travel ecosystem where existing gains in digital access and connectivity translate into faster conversions, higher volumes and more predictable growth across inbound and outbound travel.
Jai Sreedhar, Joint Managing Director & CEO, Rosetta Hospitality
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.
Davinder Juj, General Manager, Eros Hotel New Delhi
As we approach Budget 2026, we look forward to the Finance Minister’s continued focus on infrastructure and hospitality. Expanding the harmonised list of infrastructure to include new sectors, operationalising the Urban Challenge Fund, and providing greater fiscal flexibility for states will unlock more private investment in tourism and hotel projects. We also hope for rationalisation of customs duties on luxury imports and a reduction in GST for hospitality services, which will boost demand, create jobs, and enhance India’s appeal as a global travel destination. At Eros Hotel New Delhi, we are ready to support the government’s vision of a self-reliant, vibrant tourism sector.
