By:-  Shwetank Singh, Executive Director, Chalet Hotels Limited

“As we approach the 2026 Budget, India’s hospitality sector waits with measured optimism. We’ve created 46.5 million jobs and are projected to support 64 million by 2035, yet do not get classified as infrastructure which is a looming constraint on scale.

The 2025-26 Union Budget extended infrastructure status to hotels in 50 select destinations, but the sector needs comprehensive recognition. Infrastructure classification unlocks soft financing, lower utility tariffs and rationalized property taxes, support that is routinely granted to highways and ports, but withheld from hotels despite equivalent capital intensity.

Equally critical is bringing tourism into the concurrent list. Policy coordination between center and states has long remained fragmented. To ensure seamless implementation across diverse destinations, tourism, and by extension, hospitality requires constitutional alignment within shared legislative space. This will further help in the holistic development of the destination giving a seamless experience to the traveller.

The pathway to $1 trillion contribution to the GDP from the sector would then be closer to reality.”