Budget 2026: Buddhist Circuit to Revitalise North East Hospitality

A New Dawn for North East Tourism

Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, has placed a strategic focus on unlocking the tourism potential of India's North Eastern region. The headline announcement for the sector is a new, dedicated scheme for the development of Buddhist circuits across six states: Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura. This initiative is poised to be a significant catalyst for the hospitality industry, promising to enhance infrastructure, attract investment, and drive tourist footfall to a region rich in cultural and spiritual heritage.

Decoding the Buddhist Circuit Initiative

The Finance Minister described the North East as a “civilisational confluence of Theravada and Mahayana, or Vajrayana, traditions.” The new scheme aims to leverage this unique identity by creating a comprehensive pilgrimage experience. The plan is multi-faceted, focusing on the preservation of ancient temples and monasteries, the establishment of modern pilgrimage interpretation centres to educate visitors, and crucial upgrades to connectivity and pilgrim amenities. This holistic approach addresses key infrastructure gaps that have historically limited tourism growth in the area.

A Broader Strategy for Regional Growth

The Buddhist Circuit development is not a standalone measure. It is embedded within a larger government strategy, termed 'Purvodaya,' aimed at accelerating the development of eastern India. The budget complements the circuit with several supporting initiatives. These include the creation of five new tourism destinations across the Purvodaya states and the deployment of 4,000 electric buses to improve sustainable public transportation at these sites. Furthermore, the proposal to promote domestic manufacturing of seaplanes could revolutionize access to remote locations within the North East, directly benefiting the tourism and hospitality sectors by reducing travel time and enhancing the visitor experience.

Direct Impact on the Hospitality Sector

The direct consequence of a well-developed Buddhist Circuit will be a surge in both domestic and international tourists, particularly from South East Asian countries with large Buddhist populations. This increased demand will create a strong business case for investment in the hospitality sector. We can expect to see growth in:

• Accommodation: A rising need for hotels, guesthouses, and homestays catering to different budget segments.
• Food and Beverage: An expansion of restaurants and cafes offering local and international cuisine.
• Ancillary Services: Growth in tour operators, guide services, and local transport providers.

The budget also announced the upgradation of the National Council for Hotel Management and Catering Technology into a 'National Institute of Hospitality.' This move will help create a skilled workforce ready to meet the rising service standards required by an influx of global tourists.

Key Budget Provisions for NE Tourism

To clarify the government's commitments, the key announcements impacting the region's tourism landscape are summarized below:

Provision	Details	States Covered
Buddhist Circuit Development	Preservation of temples, interpretation centers, connectivity, and amenities.	Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, Tripura
E-Bus Deployment	Provision of 4,000 e-buses for tourism sites.	Purvodaya States (including NE)
Destination Development	Creation of five new tourism destinations.	Five Purvodaya States
Skilling & Institutional Support	Upgrading NCHMCT to a National Institute of Hospitality.	National
Enhanced Connectivity	Incentives for domestic manufacturing of seaplanes.	National, with high impact on remote regions

Building on a Strong Foundation

This focused push builds upon the foundation laid by previous policies like the Swadesh Darshan scheme, which also promoted thematic tourist circuits. In FY26, the scheme had an allocation of ₹1,900 crore and had already approved projects like a Buddhist meditation centre in Bodh Gaya. The strong recovery in tourism post-pandemic, with Foreign Tourist Arrivals reaching 99.52 lakh in 2024, indicates a receptive market for such targeted development projects. The Economic Survey 2025-26 highlighted that tourism contributed 5.22% to GDP in FY24, underscoring its economic importance.

Market Sentiment and Future Outlook

Investor sentiment towards the North East is expected to turn positive following these announcements. The clear government roadmap de-risks investment in the region's hospitality and infrastructure sectors. While challenges related to difficult terrain and the need for efficient state-level execution remain, the dedicated funding and integrated approach signal strong political will. The development of the Buddhist Circuit, supported by enhanced connectivity and a skilled workforce, is set to transform the North East into a premier global destination for spiritual and cultural tourism, offering substantial long-term opportunities for the hospitality industry.