Welcoming the Union Budget 2026, the Travel Agents Association of India (TAAI) expressed its appreciation to Finance Minister Nirmala Sitharaman for presenting a pragmatic and growth-oriented Budget with a clear focus on tourism and hospitality. Sriram patel- Hon. Sec. Gen. said the rationalisation of TCS to a flat 2% without any threshold on overseas tour packages will significantly boost outbound travel, improve cash flows for the trade and enable faster consumer decision-making.
The Association further noted that the strong thrust on roads, railways, seaplane aviation and regional connectivity will play a vital role in strengthening domestic and inbound tourism, facilitating religious and temple pilgrimage circuits, and enhancing travel to emerging destinations. TAAI acknowledged that several of its representations have been positively considered, though not in entirety, and added that the proposed rail corridors will also improve last-mile connectivity for travellers.
Overall, TAAI termed the Budget as pro-tourism, infrastructure-led and well-balanced, and expressed its commitment to continued collaboration with the Government to support sustained growth of India’s travel and tourism sector.
Reacting to the Union Budget 2026, Ravi Gosain, President, Indian Association of Tour Operators (IATO), said that the overall Budget is positive and reflects the Government’s intent to place tourism at the centre of economic growth.
He welcomed the Finance Minister’s announcement to train 10,000 tourist guides across archaeological and heritage sites, stating that this would significantly enhance visitor experience and strengthen India’s cultural and experiential tourism offering.
However, Gosain expressed concern over the absence of a dedicated allocation for overseas tourism promotion, noting that global visibility and sustained international marketing are critical for driving inbound tourism growth. He added that while domestic infrastructure and skill development are important, international promotion remains essential to position India competitively in the global tourism market.
Commenting on the Union Budget 2026, Karan Agarwal, Director, Cox & Kings, said the Budget adopts a balanced and long-term view of the travel sector.
“What stood out for me is that this Budget does not treat travel as a one-sided story. Outbound travel clearly needed a course correction, and the reduction of TCS on overseas tour packages to 2% does exactly that by removing a key friction point that travellers faced at the planning stage.
On the inbound side, the intent is distinctly long-term. The emphasis on cultural and experiential tourism—through the development of archaeological sites, strengthening of Buddhist circuits, and creation of skilled local guide networks—signals a shift in focus towards how India is experienced, not just how many visitors arrive. If implemented effectively, this approach could help move Indian tourism from being crowded and transactional to curated, experience-led and value-driven.”
Welcoming the Union Budget 2026, Dinesh Kumaarr, Chairman – North India, Travel Agents Federation of India (TAFI), said the reduction in TCS from earlier slabs of 5–20% to a flat 2% is a true game changer for the travel industry.
He said the move will significantly ease the cash-flow burden on travel businesses and encourage travellers to opt for transparent and formal payment channels. “This step will help build greater trust, improve compliance and give a clear push towards organised and sustainable growth of the travel sector. I also see this decision providing a strong boost to outbound tourism in the coming months,” he added.
Kumaarr thanked Finance Minister Nirmala Sitharaman for addressing a long-standing concern of the travel trade through this reform.
