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2 Feb 2026·Source: The Indian Express
4 min
EconomyPolity & GovernanceNEWS

Budget Boost for Tourism: Buddhist Circuits, Cultural Sites, Upskilling

Tourism gets a boost with focus on Buddhist circuits, cultural sites.

Budget Boost for Tourism: Buddhist Circuits, Cultural Sites, Upskilling

Photo by Jacek Dylag

Union Finance Minister Nirmala Sitharaman emphasized tourism's role as an economic and cultural asset in the Union Budget 2026-27. She highlighted its potential for employment, forex earnings, and local economic expansion. Key proposals include upgrading the National Council for Hotel Management and Catering Technology to a National Institute of Hospitality and setting up a National Destination Digital Knowledge Grid. A pilot scheme will upskill 10,000 guides in 20 iconic tourist sites. 15 archaeological sites, including Lothal, Dholavira, and Rakhigarhi, will be developed into vibrant cultural destinations. The TCS rate on overseas tour packages is proposed to be reduced from 5%/20% to 2%. A scheme for developing Buddhist circuits in the Northeast is also planned, along with ecologically sustainable mountain trails.

Key Facts

1.

National Institute of Hospitality: Upgrade of existing council

2.

National Destination Digital Knowledge Grid: To document sites

3.

Pilot Scheme: Upskill 10,000 guides in 20 sites

4.

TCS Rate: Proposed reduction to 2% on tour packages

UPSC Exam Angles

1.

GS Paper 3: Economy - Tourism sector's contribution to GDP, employment generation

2.

GS Paper 1: Art and Culture - Development of archaeological sites, promotion of cultural heritage

3.

GS Paper 2: Government Schemes - Analysis of Swadesh Darshan and PRASHAD schemes

4.

Potential Question Types: Statement-based MCQs, analytical questions on sustainable tourism

Visual Insights

Archaeological Sites to be Developed

Map showing the location of 15 archaeological sites, including Lothal, Dholavira, and Rakhigarhi, to be developed into vibrant cultural destinations.

Loading interactive map...

📍Gujarat📍Gujarat📍Haryana
More Information

Background

The tourism sector in India has ancient roots, with pilgrimage and trade routes serving as early forms of travel. The Mauryan empire facilitated travel through well-maintained roads and rest houses. The concept of Atithi Devo Bhava, treating guests as gods, has been a cornerstone of Indian culture, promoting hospitality. During British rule, tourism evolved with the development of railways and hill stations. The Archaeological Survey of India (ASI), established in 1861, began preserving historical sites, laying the foundation for cultural tourism. Post-independence, the government recognized tourism's economic potential, leading to the formation of dedicated tourism departments. Several initiatives have been launched to promote tourism, including the Swadesh Darshan Scheme and the PRASHAD Scheme. These schemes focus on developing thematic circuits and improving pilgrimage infrastructure. The Ministry of Tourism plays a crucial role in formulating policies and coordinating with various stakeholders to boost the tourism sector. The National Tourism Policy guides the sustainable and responsible development of tourism in India. India's tourism sector also benefits from its membership in international organizations like the World Tourism Organization (UNWTO). This collaboration helps in adopting global best practices and promoting India as a preferred tourist destination.

Latest Developments

Recent years have seen a surge in domestic tourism, driven by increased connectivity and promotional campaigns like 'Dekho Apna Desh'. The government is focusing on developing niche tourism segments such as adventure tourism, wellness tourism, and eco-tourism. The e-Visa facility has been expanded to attract more international tourists. However, the tourism sector faces challenges such as inadequate infrastructure, safety concerns, and environmental degradation. The COVID-19 pandemic severely impacted the sector, leading to job losses and economic downturn. The government is now implementing measures to revive tourism, including financial assistance and marketing campaigns. The development of the National Destination Digital Knowledge Grid, as proposed in the budget, aims to leverage technology for promoting tourism. This initiative will provide tourists with comprehensive information and enhance their travel experience. The upskilling of tourist guides is also crucial for providing quality services and promoting responsible tourism. Looking ahead, the tourism sector is expected to witness significant growth, driven by rising disposable incomes and changing travel preferences. Sustainable tourism practices and community participation will be key to ensuring long-term benefits. The focus on developing Buddhist circuits in the Northeast will also contribute to regional development and cultural preservation.

Frequently Asked Questions

1. What are the key facts regarding the tourism boost mentioned in the Union Budget 2024-25 that are important for UPSC Prelims?

For UPSC Prelims, remember these key facts: The budget focuses on upgrading the National Council for Hotel Management and Catering Technology to a National Institute of Hospitality. A National Destination Digital Knowledge Grid will be established. A pilot scheme will upskill 10,000 guides across 20 iconic tourist sites. The TCS rate on overseas tour packages is proposed to be reduced to 2%.

Exam Tip

Focus on remembering the numbers (10,000 guides, 20 sites, 2% TCS) and the new institutions being created.

2. What is the National Destination Digital Knowledge Grid and why is it important?

The National Destination Digital Knowledge Grid is a proposed initiative to document and showcase tourist sites digitally. It's important because it can enhance the visibility of these sites, provide tourists with comprehensive information, and aid in better planning and management of tourism resources. This aligns with the 'Dekho Apna Desh' initiative.

Exam Tip

Relate this to the broader goal of promoting domestic tourism and digital India.

3. How does the proposed reduction in TCS rate on overseas tour packages impact the tourism sector and common citizens?

The reduction in TCS rate from 5%/20% to 2% on overseas tour packages is likely to make international travel more affordable, potentially boosting demand for such packages. This could benefit travel agencies and airlines. For common citizens, it means a lower upfront cost for booking international tours, encouraging more people to travel abroad.

Exam Tip

Consider the impact on both outbound and inbound tourism when analyzing this.

4. Why is the government focusing on developing Buddhist circuits in the Northeast?

The government's focus on developing Buddhist circuits in the Northeast aims to promote religious tourism, showcase the region's rich cultural heritage, and boost local economies. The Northeast has numerous Buddhist sites and monasteries, and developing these circuits can attract both domestic and international tourists, generating employment and income for local communities.

Exam Tip

Link this to India's Act East Policy and efforts to integrate the Northeast.

5. What are the recent developments in tourism sector mentioned in the article?

Recent developments include a surge in domestic tourism driven by increased connectivity and campaigns like 'Dekho Apna Desh'. The government is also focusing on niche tourism segments such as adventure, wellness, and eco-tourism. The e-Visa facility has been expanded to attract more international tourists.

Exam Tip

Note the shift towards promoting domestic tourism and niche segments.

6. What is the significance of developing archaeological sites like Lothal, Dholavira, and Rakhigarhi into vibrant cultural destinations?

Developing these sites is significant because it helps preserve and showcase India's rich historical and cultural heritage. It can attract tourists interested in history and archaeology, boosting local economies. These sites represent important aspects of ancient civilizations and their development into cultural destinations will enhance awareness and appreciation of India's past.

Exam Tip

Remember these sites are related to the Indus Valley Civilization, a key area for UPSC.

7. What challenges does the tourism sector in India currently face, as per the article's background context?

The article mentions that the tourism sector faces challenges such as inadequate infrastructure, seasonality, and safety concerns. These issues can hinder the growth of the sector and deter both domestic and international tourists. Addressing these challenges is crucial for realizing the full potential of tourism in India.

Exam Tip

Consider how government initiatives are trying to address these specific challenges.

8. How can the upskilling of 10,000 guides in 20 iconic tourist sites impact the quality of tourism in India?

Upskilling guides can significantly enhance the tourist experience by providing visitors with accurate, engaging, and informative tours. Well-trained guides can also promote responsible tourism practices and contribute to the preservation of cultural heritage. This initiative can improve India's image as a desirable tourist destination and encourage repeat visits.

Exam Tip

Think about the multiplier effect – better guides lead to happier tourists, which leads to more tourism.

9. What is 'Atithi Devo Bhava' and how does it relate to the development of tourism in India?

'Atithi Devo Bhava' is a cultural concept that means 'Guest is God'. It emphasizes the importance of hospitality and treating guests with respect and kindness. This concept is fundamental to Indian culture and plays a significant role in promoting tourism by creating a welcoming and positive experience for visitors.

Exam Tip

Use this concept to illustrate the cultural foundation of tourism in India.

10. What reforms are needed to further boost the tourism sector in India, considering the budget boost?

Reforms needed include improving infrastructure (roads, airports, hotels), ensuring safety and security for tourists, promoting sustainable tourism practices, and enhancing marketing and promotion efforts. Streamlining visa processes and providing better training to tourism professionals are also crucial for attracting more tourists and enhancing their experience.

Exam Tip

Focus on practical and actionable steps that can be taken by the government and private sector.

Practice Questions (MCQs)

1. Consider the following statements regarding the recent budget proposals for the tourism sector: 1. The TCS rate on overseas tour packages is proposed to be reduced to 2%. 2. The National Council for Hotel Management and Catering Technology will be upgraded to a National Institute of Hospitality. 3. A pilot scheme will upskill 100,000 guides in 20 iconic tourist sites. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The TCS rate on overseas tour packages is proposed to be reduced from 5%/20% to 2% as mentioned in the budget summary. Statement 2 is CORRECT: The National Council for Hotel Management and Catering Technology will be upgraded to a National Institute of Hospitality as stated in the budget summary. Statement 3 is INCORRECT: The pilot scheme will upskill 10,000 guides, not 100,000, in 20 iconic tourist sites as per the budget summary.

2. Which of the following archaeological sites are included in the list of 15 sites to be developed into vibrant cultural destinations, as per the Union Budget 2026-27? 1. Lothal 2. Dholavira 3. Kalibangan Select the correct answer using the code given below:

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Lothal and Dholavira are explicitly mentioned in the budget summary as archaeological sites to be developed into vibrant cultural destinations. Rakhigarhi is also mentioned, but Kalibangan is not. Therefore, only statements 1 and 2 are correct.

3. The Union Budget 2026-27 proposes a scheme for developing Buddhist circuits in which region of India?

  • A.Western Ghats
  • B.Northeast
  • C.Himalayan Region
  • D.Southern India
Show Answer

Answer: B

The Union Budget 2026-27 proposes a scheme for developing Buddhist circuits specifically in the Northeast region of India, as mentioned in the provided summary.

4. Consider the following statements regarding the National Destination Digital Knowledge Grid: 1. It aims to provide comprehensive information to tourists. 2. It is focused on promoting only international tourism. 3. It is being developed by the Ministry of Culture. Which of the statements given above is/are correct?

  • A.1 only
  • B.2 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The National Destination Digital Knowledge Grid aims to provide comprehensive information to tourists and enhance their travel experience. Statement 2 is INCORRECT: The grid is intended to promote both domestic and international tourism by providing information and enhancing the travel experience for all tourists. Statement 3 is INCORRECT: While the Ministry of Culture may be involved, the primary responsibility for developing the grid likely lies with the Ministry of Tourism or a related technology agency.

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