Union Budget 2026–27: Hospitality Industry Shares Mixed but Constructive Views

The hospitality industry has offered a nuanced response to the Union Budget 2026–27, welcoming initiatives aimed at skill development, infrastructure creation and tourism promotion, while also flagging the need for more targeted policy support for restaurants and hospitality businesses. Industry leaders believe that continued focus on skilling, wellness tourism and MSME growth will be key to building a resilient, sustainable and globally competitive hospitality sector in the years ahead.

Pranav Rungta, Co-Founder & Director, Nksha; Vice President, NRAI Mumbai

“Budget 2026 is a positive step for India’s hospitality sector. Announcements like the first-ever National Institute of Hospitality and structured skill development for tourist guides will strengthen service standards and prepare our workforce to meet growing domestic and international demand.

At the same time, restaurants continue to face structural challenges such as GST on commercial leases, access to export incentives like SEIS and easier SME support. Addressing these challenges alongside rising tourism and dining demand is key to building a resilient, sustainable, and globally competitive hospitality sector.”

Poonam Singh, General Manager, Dharana at Shillim

“The Union Budget 2026–27 reflects a considered recognition of tourism and hospitality as important enablers of experience-led travel. The emphasis on infrastructure development, skill enhancement, and institutional support, alongside a continued focus on India’s traditional wellness systems such as Ayurveda and Yoga, signals an intent to strengthen destinations grounded in authenticity, wellbeing, and a mindful engagement with cultural and natural heritage.

For the wellness and hospitality sector, these measures create opportunities to advance sustainable tourism, enable meaningful regional employment, and elevate service standards, reinforcing India’s position as a globally credible destination for holistic wellbeing and conscious travel.”

Anurag Katriar, Co-Founder, Otoki Restaurant; Founder, Indigo Hospitality Pvt. Ltd.

“While the Union Budget 2026–27 takes meaningful steps towards strengthening the broader services and tourism ecosystem through skilling, infrastructure development, and ease of doing business, the hospitality sector itself appears to have received limited direct policy support. Given that restaurants and hospitality businesses are among the largest generators of urban employment, more targeted incentives whether through rationalisation of taxes, input cost relief, or sector-specific financing would have helped address the rising operational pressures the industry continues to face.

That said, the Budget’s emphasis on entrepreneurship, MSME growth, and capacity building does provide a long term framework within which hospitality businesses can evolve more. A sharper focus on hospitality in future policy interventions would further unlock the sector’s potential as a driver of jobs, tourism led growth, and India’s service sector competitiveness.”