Union Budget 2026: Kashmir tourism industry hopes for bailout and policy support

With the Union Budget scheduled for February 1, stakeholders in Kashmir’s tourism sector are hopeful that targeted policy interventions will help revive an industry that has weathered prolonged challenges.

Tourism operators in the Valley are seeking special bailout measures, lower tax slabs and financial assistance, along with formal recognition of tourism as an industry. They say such steps would ease financial stress and enable local businesses to tap into government incentives and institutional credit.

Travel agents, houseboat owners and shikara operators have also called for increased budgetary allocations for promotional campaigns to market Kashmir more aggressively across India and in international markets. 

Businesses argue that lower tax slabs and streamlined policy support would provide immediate relief. They also stress that the implementation of “industry” status must go beyond announcements and translate into tangible on-ground benefits.

Tourism businesses also say that real stories of good experiences in Kashmir have kept the sector afloat, and things are looking up despite recent adversities and financial losses.

Renowned for its scenic landscapes and cultural heritage, Kashmir has long been one of India’s most sought-after destinations. Industry players believe that clear and focused announcements in the February Union Budget could accelerate the recovery process and strengthen the region’s tourism economy in the months ahead.