India is on the brink of a travel boom. With a rising economy in GDP growth 7.2% per capita and an increasing inclination towards international journeys. Mirroring China’s earlier surge in outbound tourism—fueled by comparable population dynamics and income growth—India could see its tourists embark on 80 to 90 million international trips annually by 2040. Meanwhile, the resurgence in China’s travel has not significantly boosted outbound tourism, which is not expected to reach pre-pandemic levels until 2025. The lukewarm state of the outbound travel market primarily stems from two factors, due to the financial stability of Chinese households that was greatly impacted by stringent COVID-19 restrictions and policy-related constraints, particularly the increasingly complex visa application process worsened by rising geopolitical tensions, have played a pivotal role.
India has risen to become a powerhouse of outbound travelers from Asia in 2022, outpacing other significant contributors like China, South Korea, and Japan. A 2024 report unveiled at ITB Berlin highlighted a staggering 190% growth in Indian outbound tourists, marking a robust rebound from the pandemic’s impact.
Where are Indian travelers heading?
Key travel destinations for Indians include Dubai, the USA, Thailand, Saudi Arabia, and Singapore, with sustained interest anticipated in overseas travel. By May 2023, India secured the position of the second-largest source of tourists to the U.S., with Indian tourists spending around $13 billion in the country in 2022. Proximity plays a significant role in their choice of destination. In fact, approximately 70 percent of travelers opt for destinations within close reach. With travel durations under four hours and a substantial Indian community, the Middle East emerges as a favored destination for about one-third of Indian travelers, with South Asian locations also popular. For longer journeys, North America and Western Europe are the top picks. Although the preferred destinations have been relatively stable over the last ten years, some new locations are beginning to challenge the traditional favorites.
According to the U.S. Travel Association’s State of the Travel Industry report, travel in 2022 generated $1.2 trillion in direct spending and supported about 15 million jobs in the U.S., reflecting its substantial economic contribution. The surge in outbound travel from India can be attributed to economic growth, a wealthier middle class, increased disposable incomes, and better access to air travel. Niches like medical, wellness, and adventure tourism are also drawing more Indian travelers.
Moreover, the increasing trend of Indian students studying in the U.S. is boosting related travel, including visits by family members. U.S. tourism sectors note a rise in demand for unique travel experiences among Indian tourists, who are branching out beyond famous tourist spots to explore shopping, national parks, art museums, dining, small towns, historical sites, and natural landscapes.
For Indian passport holders, a range of countries across various continents allow visa-free travel for periods ranging from 30 to 90 days, enhancing the ease of international travel.
International travel expert Mr. Anup Keshan . “Expanding visa exemptions has opened up several opportunities for Indian tourists, enabling cultural exchanges and access to a variety of global destinations. Over time, the strengthening of the Indian passport has spurred economic expansion and widened opportunities. India is poised to emerge as an industry stalwart.”
Countries permitting visa-free access include:
Africa: Angola, Burundi, Cape Verde Islands, Comoro Islands, Djibouti, Ethiopia, Gabon, Guinea-Bissau, Kenya, Madagascar, Mauritania, Mauritius, Mozambique, Rwanda, Senegal, Seychelles, Sierra Leone, Somalia, Tanzania, Togo, Tunisia, Zimbabwe.
Asia: Bhutan, Cambodia, Indonesia, Iran, Jordan, Kazakhstan, Laos, Macao (SAR China), Malaysia, Maldives, Myanmar, Nepal, Oman, Qatar, Sri Lanka, Thailand, Timor-Leste.
North America: Barbados, British Virgin Islands, Dominica, El Salvador, Grenada, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Trinidad and Tobago.
Oceania: Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Niue, Palau Islands, Samoa, Tuvalu, and Vanuatu.
South America: Bolivia.
Sri Lanka Extends Visa-Free Entry Program
Sri Lanka has prolonged its visa-free entry program until May 31, 2024. Initially launched as a pilot in October of the previous year, this extension aims to encourage tourism and facilitate easier access for visitors.
Enhanced Visa Regulations for Indian Nationals Traveling to Schengen Area
Effective April 18, 2024, the European Commission has implemented a new visa policy for Indian nationals, simplifying travel to the Schengen area. The revised policy introduces a “cascade” system that grants qualified Indian travelers easier access to long-term, multi-entry visas. After successfully using two previous visas within three years, applicants can now obtain a two-year visa, potentially followed by a five-year visa if their passports remain valid. This change is designed to boost mobility and strengthen connections between India and the European countries within the Schengen zone.
Japan’s New E-Visa System for Indian Tourists
Japan has launched an e-Visa system starting April 1, which simplifies the visa application process for Indian tourists. The new system allows for stays of up to 90 days on a single-entry basis and is tailored specifically for air travelers with ordinary passports. This initiative is part of Japan’s efforts to enhance accessibility for international tourists and streamline the entry process.
Thailand Continues Visa Exemption for Indian and Taiwanese Tourists
Thailand has extended its visa exemption policy for tourists from India and Taiwan until November 11, 2024. This extension is part of Thailand’s strategy to attract more international tourists and stimulate its tourism-dependent economy.
Visa Abolition for Indian Citizens by Iran
As of February 4, 2024, Iran has eliminated visa requirements for Indian citizens. This new visa-free privilege, valid for a 15-day stay every six months, is part of Iran’s initiative to foster easier travel and cultural exchange. However, it is important to note that the 15-day period cannot be extended.
India’s Passport Strengthens in Global Ranking
India’s passport has climbed to the 80th position on the Henley Passport Index 2024, reflecting improved visa-free access to several countries, including Oman and Qatar. This enhancement is seen as a significant boost to the international mobility of Indian passport holders.
The passenger traffic recorded at major Indian airports for FY 2023–24 was as follows:
- Indira Gandhi International Airport: 73.67 Million
- Chhatrapati Shivaji Maharaj International Airport: 52.82 Million
- Kempegowda International Airport: 37.52 Million
IndiGo captured about 15.7% of the market share among international airlines operating in India during the financial year 2023, out of the 83 scheduled international carriers.
As of February 2024, India was ranked fifth as a source market for tourists to Thailand, with over 300,000 visitors. Thailand remained a preferred destination for Indians in 2023, with Bangkok being the second most popular international city after Dubai. The country also extended a visa waiver to Indian tourists from November 10 of the previous year until May 10, 2024, resuming a program that was suspended following the Covid pandemic.
Agoda’s list of top international summer travel destinations for Indians includes Bali, Singapore, Bangkok, Dubai, and Kuala Lumpur.
With a burgeoning middle class and increased flight routes, the first quarter of 2024 saw 97 million passengers traveling through Indian airports—a volume that would have taken a full year to reach a decade ago. The growing affluent demographic, seeking luxury travel experiences, underscores the significant expansion seen in the outbound travel segment from India. Recent statistics show that over 30% of Indian travelers favor destinations in the Middle East.