From a consumer standpoint, the rationalisation of Tax Collected at Source is a welcome move, the simplified flat 2% TCS on overseas tour programme packages replaces the earlier two-tier structure, easing compliance and unblocking cash flows for travellers. We also appreciate the reduction of TCS to 2% on education and medical remittances, which will significantly ease the burden on these important long-term drivers, especially amid the impact of rupee depreciation.

The pilot initiative to upskill 10,000 tourist guides across 20 iconic sites through a standardised 12-week hybrid programme is a strong step towards ensuring quality service delivery and enhancing India’s global competitiveness. Additionally, the development of seven high-speed rail corridors, expansion of 20–25 new National Waterways, and incentives for indigenising seaplane manufacturing will greatly enhance connectivity and unlock new tourism circuits, including remote and island destinations. The proposed scheme to develop five regional medical tourism hubs in partnership with the private sector further strengthens India’s positioning as a global healthcare destination.

Overall, the Budget reinforces tourism’s role in driving inclusive growth; however, a higher marketing outlay towards promoting Incredible India could have delivered a powerful double-barrel impact by complementing infrastructure development with stronger global visibility.”

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