New Budget, Same Old Demands: Will The Indian Travel Sector Finally Be Heard?

Across the Union Budgets over the past few years, the travel industry has been left disappointed. Apart from two tax reforms and destination development in Bihar and Odisha, the sector did not receive much last year too. 

In fact, in February, the global marketing budget was reduced by 97% to just INR 30 million ($361,000), even as the government said that it was focusing on making India a global destination. 

Now, as the announcement of the budget for the 2026 financial year is around the corner, players in the travel sector have once again renewed their hopes for an industry status to the sector, especially because travel and tourism are two of the largest industries in India, with a total contribution of about $199.6 billion to the country’s gross domestic product (GDP).

“The travel and tourism sector also contributes over 9% to employment,” said Rajesh Magow, co-founder and group CEO of online travel company MakeMyTrip. According to Magow, the sector is outpacing the overall economy, with domestic tourism growing at a double-digit ra