Budget 2026 sends out a strong signal that India finally recognises how we are losing the global tourism race, despite extraordinary cultural diversity, wealth of historical monuments and scenic beauty. Not only are we not attracting foreign tourists, Indians themselves are flocking to Southeast Asia and other countries that offer cost-effective holidays with visa-free entry and seamless connectivity.
Over 2.1mn (million) Indians went to Thailand in 2024 and over a million each to Singapore and Malaysia. Many return with fond memories and a sense of being short-changed at the staggering gap between ‘Incredible India’ campaigns and the hostile reality of paying steep prices for decent hotels and no escape from poor connectivity, indifferent services, hygiene and safety issues and having to deal with local ‘taxi mafias’. It has led to a surge in social-media posts demanding better value for money.
Even as global tourism has surged, India inbound tourism has been left behind. Foreign tourist arrivals remain stuck at their pre-COVID level of around 10mn—barely a quarter of the number visiting Thailand. Worse, at least seven major countries, including United States and United Kingdom, have issued travel advisories for India, citing safety concerns for women, following repeated reports of sexual assault and violence, over the past five years.
Will things be any different this time or will the gap between potential and delivery continue to widen?
The finance minister’s (FM’s) latest pitch through the Union Budget leans heavily on familiar pillars: Swadesh Darshan 2.0, which focuses on temple towns, heritage, and thematic circuits, and PRASAD (pilgrimage rejuvenation and spiritual augmentation drive) schemes. She announced a 12-week pilot to train 10,000 tourist guides, in partnership with the Indian Institutes of Management (IIM), across 20 iconic sites; the creation of a National Institute of Hospitality through the upgrading of existing institutions; and a suite of initiatives ranging from eco-mountain trails and specialised walkways to immersive storytelling technologies. She also proposed a new ‘National Destination Digital Knowledge Grid’ to document and map India’s cultural, heritage and tourist assets.
More concretely, she spoke of transforming 15 archaeological sites into ‘vibrant experiential cultural destinations’, naming Dholavira and Lothal in Gujarat, Rakhigarhi in Haryana, Adichanallur in Tamil Nadu, Sarnath and Hastinapur in Uttar Pradesh, and Leh Palace in Ladakh.
The question is: Will this largely old wine in not-so-new bottles make a difference?
Policy vs Performance Gap
After all, we have seen clever slogans and acronyms that go back to 2014, when prime minister (PM) Narendra Modi spoke about promoting ‘tourism not terrorism’. This had led to the launch Swadesh Darshan as well as PRASAD and a series of updates and expansions of such initiatives. But the same old complaints about costs, service and infrastructure persist.
In the run up to Budget 2026, a government release claimed that 75 out of 76 projects sanctioned under Swadesh Darshan are physically completed. The scheme was revamped in 2022 and 53 new projects sanctioned under the Swadesh Darshan 2.0. As for PRASAD, the release says 31 out of the 54 projects, sanctioned over Rs1,700 crore have been completed. In addition, a special assistance of Rs3,295 crore was sanctioned for 40 projects across 23 states for the ‘Development of Iconic Tourist Centres to Global Scale Scheme’. (https://www.pib.gov.in/PressReleasePage.aspx?PRID=2212575®=3&lang=2)
Meanwhile, oversight bodies tell a different story. A CAG (comptroller and auditor-general of India) audit of 2023 had exposed severe shortcoming, including delays, unrealistic budgets and absence of feasibility studies before launch. In 2024, a parliamentary panel noted that less than 50% of 46 projects were finished in a decade; by 2025, the public accounts committee (PAC) of Parliament flagged a systemic ‘failure’ in execution and fund utilisation.
Now, Budget 2026 has a series of new promises – tourism development needs much more than policy pronouncements. Also, infrastructure on the ground has to go far beyond incremental changes such as a few pockets of better infrastructure, connectivity, parking facilities and sound-and-light shows.
Microcosms of Failure
Nowhere is the rot more visible than in Goa, once the jewel of India’s tourism crown. Foreign arrivals have crashed from 0.89 mn in 2017 to 0.51mnin 2023. Social media is awash with angry posts about unchecked ‘taxi mafia’, deteriorating infrastructure and congestion caused by haphazard construction. The government’s response is denial and inaction!
Similarly, Varanasi has seen massive infrastructure development. Its spectacular Ganga aarti draws pilgrims from around the world; and yet, people continue to be repelled by filth and poor hygiene. The 11-year-old Namami Gange project, which has seen its outlay balloon to ₹45,600 crore, has failed to make much dent on persistent pollution. If this happens in the PM’s own constituency, what can we expect elsewhere?
While the FM talked of ‘eco-mountain trails’, the 2024 tragedy at Wayanad where 200 people were killed during heavy rains, primarily due to rampant construction on fragile slopes, tells its own story. Over-tourism and reckless, often illegal construction on fragile hill stations and the unwillingness to heed ecological warnings, has been a constant.
MVT: Old Chestnut
Another old chestnut is medical value tourism (MVT). It has repeatedly found mention in Budgets and policy papers over the past 25 years. Late FM Jaswant Singh had talked about India as a ‘global health destination’ in 2002. The Budget of 2005-06 announced issue of medical visas (M-visas). In 2015, the tourism ministry announced the 'National Medical and Wellness Tourism Board (NMWTB)’ to oversee medical tourism initiatives. In 2022, came ‘Heal in India’ slogan -- by this time, the sector was worth US$9bn (billion) and projected to grow to US$58bn by 2035.
And yet, despite a 30% to 80% cost savings and availability of skilled doctors, MVT hasn’t taken off, unlike in countries such as Thailand, Malaysia which offer world-class facilities and packages blending care and tourism. What works, in most countries, are unified policies, accreditation, short wait times, marketing and a positive perception about safety and hygiene.
Budget 2026 now talks of establishing five regional medical value tourism hubs in partnership with the private sector which will integrate medical, educational and research facilities, with dedicated facilitation centres for international patients. She also spoke about capitalising on the ‘global interest in traditional medicine’ by setting up three new all-India institutes of ayurveda.
Truly speaking, when it comes to medical tourism or ayurveda, there are private centres of excellence, that attract global celebrities and royalty like King Charles because they have that succeed in spite of the surrounding chaos and not because of government policies. These include private hospitals in Delhi, Mumbai, Chennai, Manipal and the ayurvedic centres in Bengaluru or the spas at Rishikesh. It is unclear if policies outlined in the Budget could specifically help India tap into the global wellness tourism market of US$1.3trn (trillion) without an integrated approach.
Indian tourism, including medical tourism, has huge potential that is badly wasted, because delivery on the ground needs a different level of commitment, determination and initiatives from the government to ensure world-class facilities at competitive prices.
The Union Budget has announced plenty of plans, but local mafias, and those who permit illegal construction that is pillaging of our hills, thrive on political linkages. Unless we have the will to deal with them, address safety, hygiene and cultural issues, the yawning gap between tourism potential and delivery will remain, no matter how much money is thrown into innumerable ‘schemes’ every year.
True. Water finds its own level no matter what is said. Expenses in India are high due to hidden costs of doing business despite low labour costs. The biggest business person is the government
A much needed post mortem. Whether hotels where we stay offer value for money? Strict adherence to check-in and check-out time makes tourists feel cheated. Who is the authority to whom one can complain? Out tourism sector does not have any regulator. Hassele-free mode of transport is sometimes a dream. Overcrowded trains, horrible experience of journey by road, insufficient provision of washrooms, etc. during travel is also a big worry.
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