India Budget 2026 to boost corporate travel in tier two cities

India: Following the recent India Union Budget 2026-2027 and US tariff announcements, SilverDoor reports increasing demand for emerging, tertiary locations across India. 

Last week’s Budget had a focus on service-led growth with investment announced for manufacturing and infrastructure development, including high-speed transport links. 

This is in addition to increased support for micro, small and medium enterprises (MSMEs) to help drive employment and regional development, with additional support for biopharma and electronics manufacturing.

Corporate investment has been bolstered further by a reduction in US tariffs on Indian goods, which is expected to fuel demand for corporate travel across the country.

Locations such as Guwahati, Noida, Lucknow, Thiruvananthapuram and Coimbatore are all expected to capture corporate travel and relocation demand, alongside the more established hubs including Pune, Chennai and Bangalore.

Businesses from IT and gaming, banking, financial services and insurance (BFSI), pharmaceuticals, and consulting, are anticipated to grow presence across India through investing in corporate travel and relocation programmes. 

Srinivasan Narayanaswami, regional head of operations for India at SilverDoor, said: “Last week’s Budget detailed a significant commitment to supporting economic growth across India, from both a sector perspective with programmes such as the Bio Pharma Shakti programme, and also – critically – from a travel and transport perspective, with seven high-speed rail corridors. Faster connections between more tertiary, tier two and three cities will play a critical role in facilitating growth at both a local and national level.”

He added: “The focus on tertiary locations is likely to sharpen considerably in the months ahead as corporate travel and housing works to support company’s wider growth plans, and the increasing demand trends across our own portfolio testify. 

“For those businesses looking to expand operations, this increase in demand is expected to result in a growth in supply of serviced accommodation and corporate housing providers. While more choice is welcome news for business owners, they are advised to take the time work with on-the-ground providers to offer local expertise when researching and booking accommodation to ensure standards and expectations are met and they can protect their most valuable asset: their people.”

Highlights:

• India Union Budget 2026–2027 and reduced US tariffs are driving increased corporate travel and relocation demand across emerging Indian cities, according to SilverDoor.
• Investment in manufacturing, infrastructure and seven high-speed rail corridors is expected to accelerate business growth in tier two and tier three locations.
• Cities including Guwahati, Noida, Lucknow, Thiruvananthapuram and Coimbatore are forecast to see rising demand for serviced apartments and corporate housing, alongside established hubs such as Pune, Chennai and Bangalore.
• Growth sectors fuelling demand include IT and gaming, BFSI, pharmaceuticals, consulting, biopharma and electronics manufacturing.