Budget 2026: 7 Bullet Train Routes and IIM-Trained Guides to Boost Tourism

TCS (Tax Collected at Source): Nirmala Sitharaman has reduced TCS on foreign travel to 2% in Budget 2026.

Tourism Budget 2026: Union Finance Minister Nirmala Sitharaman has declared the tourism sector as the 'new engine of growth' for the country in the Union Budget 2026. This year, the government has emphasised not just on travel and leisure, but on making it the biggest source of employment. In her budget speech, the Finance Minister clarified that Tier-2 and Tier-3 cities will now become new tourism hubs. The biggest good news for those who love to travel abroad is that the government has reduced the TCS (Tax Collected at Source) on foreign tour packages to 2%. This will make foreign travel cheaper than before.

Gift of 7 New High-Speed Rail Corridors

Keeping in mind the convenience of passengers, a proposal has been made to build 7 new High-Speed Rail Corridors. These corridors will connect major economic and tourist centres of the country. The prominent routes include:

Delhi – Varanasi

Mumbai – Pune

Hyderabad – Bengaluru

Chennai – Bengaluru

Varanasi – Siliguri

In addition, significant investment will be made to expand the network of 'Vande Bharat' and 'Amrit Bharat' trains and to upgrade the 'Kavach' system for safety.

IIM Guide Training

The government has taken a unique initiative to make tourism 'professional'. Now, 10,000 guides deployed at 20 major tourist destinations in the country will receive 12 weeks of special training from IIM (Indian Institute of Management). The aim is to make the communication style and behaviour of the guides world-class. Furthermore, the existing Hotel Management Council will be upgraded and renamed the 'National Institute of Hospitality', which will also train owners of small homestays and lodges.

Special Scheme for Temples

To promote religious tourism, a separate fund of ₹5,000 crore has been created for the development of 'Temple Cities'. Meanwhile, under eco-tourism, turtle nesting sites in Odisha, Karnataka, and Kerala will be developed as safe tourist destinations. For trekking in the mountains, 'Sustainable Mountain Trails' will be built in Himachal, Uttarakhand, and Kashmir.

India's History to Go Digital

The government will create a 'National Destination Digital Knowledge Grid'. This will contain a digital database of India's cultural and historical heritage, creating new employment opportunities for researchers and content creators.

Confidence of Foreign Tourists to Increase

The Travel Agents Association of India (TAAI) has called the decision to reduce TCS a 'game-changer'. Experts say, "Training guides from IIM will strengthen India's branding at a global level. This will increase the confidence of foreign tourists."

When Will the Impact Be Seen?

The DPR (Detailed Project Report) for the high-speed corridors is expected to be ready in the next 6 months. The first batch of guides' training may start from April 2026. The new TCS rates will be effective from April 1, 2026.

Special Attention to South India's Connectivity

Special focus on South India: This budget has given special attention to South India's connectivity. 4 out of the 7 high-speed corridors will cover South India (Hyderabad, Chennai, Bengaluru), which will boost both IT and tourism there.