The Indian travel industry is witnessing strong growth in 2026, driven by government support, improved connectivity, and increasing demand for both domestic and international travel. If you are planning your next trip, here are the latest developments shaping the travel market in India.
1. Big Relief for International Travelers – TCS Reduced
In the Union Budget 2026, the government has reduced Tax Collected at Source (TCS) on overseas tour packages to 2%. Earlier, travelers had to pay between 5% and 20% depending on the package value.
What this means for you:
- Lower upfront cost for international trips
- More affordable packages to destinations like Dubai, Bali, Europe, Thailand, and Maldives
- Easier planning for family and group holidays
This move is expected to boost outbound travel significantly in 2026.
2. Government Focus on Tourism Growth
Tourism has been identified as a key economic growth sector. Major initiatives include:
- Development of 15 major heritage and cultural destinations
- Investment in tourism infrastructure
- Launch of a Digital Destination Knowledge Platform to improve travel planning
This will enhance the overall travel experience and create more attractive destinations across India.
3. Expansion of Regional Air Connectivity
Under the expanded UDAN scheme, the government plans to:
- Connect 120 new destinations
- Increase access to Tier-2 and Tier-3 cities
- Make air travel more affordable and accessible
This means travelers from smaller towns will now have better flight options and more holiday opportunities.
4. India – A Fast Growing Outbound Travel Market
Many international tourism boards are actively targeting Indian travelers. Countries like:
- Malaysia
- Vietnam
- Turkey
- Japan
- Taiwan
are offering promotions and easier travel options for Indian tourists.
5. Rising Trend: Experiential & Offbeat Travel
Travel preferences in 2026 are changing. Popular trends include:
- Offbeat destinations and hidden gems
- Spiritual and wellness tourism
- Adventure and nature trips
- Short international getaways
- Workations and slow travel
Domestic destinations like Northeast India, Kashmir, Lakshadweep, and Himachal’s offbeat locations are gaining popularity.
6. Strong Growth Ahead for the Travel Industry
The Indian tourism and hospitality sector is expected to grow rapidly, with:
- Increasing middle-class travel demand
- Better connectivity and infrastructure
- More affordable travel options
- Growing interest in international holidays
Experts predict continued strong growth through 2026–2028.
Plan Your Next Trip with IWouldTravel.com
With reduced international taxes, better connectivity, and exciting new destinations, 2026 is the perfect time to travel.
At iwouldtravel.com, we offer:
- Domestic & International Holiday Packages
- Flight & Hotel Bookings
- Visa Assistance
- Customized Travel Plans
Start planning your next journey today and explore the world with ease.
