UP Budget 2026-27: ₹650 Cr Allocated for Ayodhya & Tourism

Uttar Pradesh has placed tourism firmly at the heart of its 2026–27 financial roadmap, announcing a substantial allocation aimed at strengthening pilgrimage and heritage travel across the state. In a decisive move, ₹150 crore has been earmarked for infrastructure development in Ayodhya, while ₹500 crore has been allocated to the Chief Minister Tourism Development Scheme. The announcement, made as part of the state’s annual budget, signals a strategic effort to enhance connectivity, visitor facilities, and overall destination readiness.

Ayodhya, already witnessing a remarkable surge in footfall following the consecration of the Ram Mandir, stands at the centre of this development push. The budgetary provision is expected to strengthen roads, civic amenities, crowd management systems, and supporting infrastructure required to manage increasing domestic and international arrivals. With pilgrimage travel contributing significantly to regional economies, the focus on Ayodhya reflects a broader recognition of faith-based tourism as a long-term growth driver.

Strengthening the Tourism Backbone

The ₹500 crore allocation under the Chief Minister Tourism Development Scheme is equally significant. Designed to uplift lesser-known destinations alongside established circuits, the scheme aims to modernise tourism infrastructure, improve last-mile connectivity, and elevate the overall visitor experience. From heritage towns to eco-tourism belts, the policy framework appears to be focused on balanced regional development.

For travellers, these developments promise smoother journeys, better facilities, and a more immersive experience. For tour operators and visa consultants, the implications are equally noteworthy. Enhanced infrastructure often translates into higher tourist confidence, improved safety standards, and expanded itineraries that appeal to international markets. As India positions itself as a global tourism hub, state-level initiatives such as this play a crucial role in shaping perception and accessibility.

Ayodhya’s transformation in recent years has already altered Uttar Pradesh’s tourism narrative. Once viewed primarily through a spiritual lens, the city is gradually evolving into a well-planned pilgrimage destination supported by modern amenities. The latest budget allocation reinforces this trajectory, suggesting sustained investment rather than a one-time push.

Economic and Travel Industry Impact

Tourism experts suggest that consistent capital infusion into infrastructure strengthens the multiplier effect within local economies. Hotels, transport providers, guides, and small businesses benefit directly from improved visitor flows. Moreover, organised development reduces the strain on existing resources, ensuring that growth remains sustainable rather than overwhelming.

The Chief Minister Tourism Development Scheme is expected to widen the state’s appeal beyond flagship destinations. Uttar Pradesh’s diverse offerings, from cultural heritage sites to wildlife reserves, stand to gain from structured investment. Improved marketing, upgraded facilities, and enhanced accessibility could encourage longer stays and repeat visits, two critical indicators of a healthy tourism ecosystem.

For international travellers considering India for religious or cultural exploration, improved infrastructure sends a reassuring message. Seamless roads, better sanitation, organised visitor management, and upgraded transport networks contribute significantly to travel confidence. In an increasingly competitive global tourism landscape, such measures are essential to maintain momentum.

From a policy standpoint, the 2026–27 budget reflects a strategic blend of spiritual tourism promotion and broader destination development. Ayodhya remains the emotional and symbolic anchor, yet the wider allocation under the tourism scheme ensures that growth is not limited to a single city. This balanced approach could redefine Uttar Pradesh’s standing on India’s tourism map over the coming years.

As the financial year unfolds, the focus will shift to execution. Timely implementation, transparent monitoring, and sustainable planning will determine the true impact of these allocations. For now, the message is clear: tourism infrastructure is no longer peripheral to economic planning but central to it.