Budget 2026: Govt. plans employment boost through tourism sector with upskilling of guides, Buddhist circuit in Northeast

With a focus on using tourism to generate employment and boost local economies, the Union Budget for 2026-27 announced a pilot scheme for upskilling 10,000 guides in 20 iconic tourism sites and setting up of a National Institute of Hospitality to train professionals in the sector.

Union Finance Minister Nirmala Sitharaman also said that a National Destination Digital Knowledge Grid to digitally document all places of cultural, spiritual and historic significance would be set up.

To boost tourism in the Northeast, Ms. Sitharaman also proposed a scheme for the development of Buddhist circuits in several States in the region. These States include Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura. “The scheme will cover the preservation of temples and monasteries,” she said adding that the initiative aims to highlight the Northeast’s rich spiritual heritage.

As far as budgetary allocation was concerned, there was a marginal dip in allotment from ₹2,541.06 crore in 2025-26 to ₹2,438 crore in 2026-27. The Revised Estimate for 2025-26 had been ₹1,310.30 crore.

Ms. Sitharaman said in her Budget speech that tourism has potential for employment generation, forex earnings and expanding the local economy. She proposed the setting up of a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology. “It will function as a bridge between academia, industry and the government,” she said. “I also propose a pilot scheme for upskilling 10,000 guides in 20 iconic tourist sites through a standardised, high-quality 12-week training course in hybrid mode, in collaboration with an Indian Institute of Management.”

The Budget also announced a National Destination Digital Knowledge Grid to digitally document places of significance. This initiative is expected to create a new ecosystem of jobs for local researchers, historians, content creators and technology partners.

Keeping its focus on promoting cultural heritage, the Budget announced development of 15 archaeological sites including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace into vibrant, experiential cultural destinations.

The excavated landscapes will be opened to the public through curated walkways. Immersive storytelling skills and technologies will be introduced to help conservation labs, interpretation centres, and guides.

She also announced the development of ecologically sustainable environment tourism trails to provide world-class trekking and hiking experience. The initiative includes mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir; Araku Valley in the Eastern Ghats; Podhigai Malai in the Western Ghats, turtle trails along key nesting sites in the coastal areas of Odisha, Karnataka and Kerala; and bird-watching trails along the Pulicat lake on the Andhra Pradesh-Tamil Nadu border.

While the hospitality industry largely welcomed the proposals, many said they had hoped for more initiatives to promote international tourism.

Rajiv Mehra, general secretary, Federation of Associations in Indian Tourism and Industry (FAITH), said: “We welcome the government’s initiatives to develop new adventure trail sites across States, the focus on upskilling tourist guides, the use of AI for enhancing tourist destinations, and the reduction of TCS [Tax Collected at Source] on overseas travel. These are progressive steps for the sector.”

“However, we were expecting a clear budgetary allocation for international tourism promotion, which appears to have been missed. Strengthening India’s visibility in global markets and measures for soft branding are critical to accelerating inbound tourism,” he said.