India’s Hospitality Sector Ahead of Budget 2026: Driving Sustainable Tourism Growth

As India steps closer to Budget 2026, the hospitality and tourism industry finds itself at a defining crossroads. Travel is no longer just about destinations—it’s about experiences, wellness, authenticity, and meaningful stays. From destination weddings in heritage cities to wellness retreats nestled in nature, the way people travel has fundamentally evolved.

This shift presents a powerful opportunity for India’s hospitality sector to grow—not just faster, but smarter and more sustainably.

Experiential Travel Is Redefining Demand

Post-pandemic travel trends have made one thing clear: today’s traveler seeks experiences over indulgence. Whether it’s immersive cultural stays, eco-conscious resorts, or wellness-led escapes, demand is being driven by depth, not just luxury.

India, with its diversity of landscapes, traditions, and heritage, is uniquely positioned to lead this transformation. Cities like Jaipur, Udaipur, Rishikesh, and Kerala are already witnessing increased interest in experiential tourism, destination weddings, and wellness-focused hospitality. However, sustaining this momentum requires thoughtful policy support and long-term investment.

Why Policy Support Matters More Than Ever

According to Ms. Amrita Gupta, Director of Manglam Group and CEO of Manglam Spa and Resorts, the coming year offers a crucial opportunity to strengthen hospitality’s role in tourism-led economic growth.

Her perspective highlights a key truth: while demand exists, the sector needs structural support to scale responsibly.

Some of the most impactful reforms that could accelerate growth include:

• Granting official industry status to tourism, enabling easier access to credit and institutional funding

• Rationalising GST for hospitality services, improving affordability and operational sustainability

• Enhancing access to infrastructure development, particularly in emerging and heritage destinations

• Encouraging green financing, supporting eco-friendly and sustainable hospitality projects

Together, these measures can help the industry move away from short-term gains toward quality-led, future-ready development.

Jaipur: A Case for Heritage-Sensitive Growth

Jaipur stands as a powerful example of both opportunity and responsibility. As a global tourism magnet known for its royal heritage, architecture, and destination weddings, the city continues to attract domestic and international travelers alike.

However, growth without planning risks diluting the very identity that makes Jaipur special.

Targeted budgetary support for tourism infrastructure, heritage-sensitive development, and sustainable hospitality projects can ensure that Jaipur remains competitive on the global stage while preserving its cultural soul. Investments that respect heritage, promote local employment, and integrate sustainability are not just desirable—they’re essential.

Sustainability Is No Longer Optional

Sustainable hospitality is no longer a trend; it’s an expectation. Travelers are increasingly choosing brands and destinations that demonstrate environmental responsibility, community engagement, and ethical development.

From energy-efficient resorts to water conservation, waste management, and local sourcing, sustainability-driven hospitality projects align economic growth with long-term environmental and social value. Policy incentives for such initiatives can position India as a global leader in responsible tourism.

Driving Inclusive and Long-Term Growth

A strong hospitality ecosystem doesn’t just benefit hotels and resorts—it fuels employment, supports local artisans, strengthens infrastructure, and boosts regional economies. With the right budgetary focus, tourism can become one of India’s most inclusive growth engines.

As Ms. Gupta emphasizes, thoughtful reforms can meaningfully strengthen the sector—allowing it to scale sustainably while deepening its contribution to national development.

Looking Ahead to Budget 2026

Budget 2026 has the potential to be a turning point for Indian hospitality. By aligning policy, sustainability, and long-term investment, the government can unlock the full potential of tourism-led economic growth.

For heritage destinations like Jaipur—and for India as a whole—the goal is clear: grow globally, preserve locally, and build a hospitality sector that thrives for decades to come.