Union Budget 2026: Udaipur tourism industry seeks better connectivity, tax relief

Tourism stakeholders in Udaipur, popularly known as the Lake City, are pinning high hopes on the upcoming Union Budget, seeking measures to strengthen connectivity, ease tax burdens, and support the sector amid global economic challenges.

Industry representatives have called for improved air and rail connectivity between Udaipur and major cities across the country, particularly in South India. They are also urging the government to initiate international flight operations from the Mewar region’s key tourist hub, which they believe would give a major boost to foreign tourist arrivals.

Alongside infrastructure-related demands, hoteliers and tourism operators are seeking tax relief for the sector. Among the more unconventional proposals is a call for income tax exemptions for individuals opting for domestic travel, a move they argue would incentivise tourism within India and increase overall spending.

Another key demand is the promotion of tourism in rural and tribal regions. Stakeholders say targeted government support in these areas could create new tourism circuits, generate employment, and ensure more inclusive growth.

Industry experts point out that Udaipur is the third-largest centre for handicraft exports in Rajasthan. While domestic tourist footfall has risen substantially in recent years, they note that per capita spending has not grown at the same pace, impacting overall revenues.

Exports from the region have also been hit by geopolitical tensions and the global tariff trade war triggered by US President Donald Trump, adding to the industry’s concerns. Tourism and handicraft exporters are seeking a dedicated government scheme to cushion the impact of these external shocks.

With Finance Minister Nirmala Sitharaman set to present the Union Budget on February 1, Udaipur’s tourism industry is hoping that at least some of its key demands will find a place in the government’s economic roadmap.