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India Travel and Tourism

For U.S. travel and tourism destinations, India represents a significant and growing market. India’s outbound tourism market is expanding rapidly, driven by increased disposable incomes, improved global connectivity, and a burgeoning middle class. This surge positions India as one of the world’s fastest-growing outbound travel markets.

Despite hurdles such as fluctuating exchange rates and variable levels of affordability, Indians’ desire to travel is strong. The Indian outbound market is expected to reach US$55 billion by 2034. Nearly half of Indian travelers are willing to invest more on luxury hotel brands, with wellness being a top priority on their leisure trips. The Meetings, Incentives, Conferences, and Exhibitions (MICE) segment is poised to become the world’s fastest growing source of outbound MICE tourism, exceeding $13 billion by 2031. MICE groups are considered high spenders as travel and on-ground arrangements are most often paid for by employers and the Indian MICE travelers often combine business with leisure, bringing along family members for short trips.

Why India Matters to the U.S. Travel Industry:

  • Second Largest Source Market: With over 2.1 million visitors in 2024, India is the second-largest source of international visitors to the United States (excluding Canada and Mexico). India presents a significant market opportunity for U.S. travel and tourism destinations, and there is much that U.S. destination marketing organizations can do to gain market share and become the destination of choice for Indian travelers. Considering increased competition from tourism promotion organizations around the world, U.S. destinations, attractions, service providers, and tourism marketing organizations should include India in their marketing and outreach strategies.
  • Diaspora Connections: The vibrant Indian-American diaspora of over 5 million further fuels demand, as Visiting Friends and Relatives (VFR) travel accounts for 40% of outbound trips, driven by family reunions, weddings, and cultural events.
  • Experiential Tourism: Indian travelers prioritize experiential holidays and memorable events such as concerts, and major sporting events like the upcoming 2026 FIFA World Cup, and the 2028 Summer Olympics. The U.S. is also the most popular overseas self-drive destination for Indians, demonstrating that they prefer to see the country at their own pace.

Opportunities going forward:  

With India’s outbound tourism set for sustained growth, U.S. destinations have a unique opportunity to attract these high-value travelers. Indian travelers are increasingly drawn to the diverse offerings of the United States, including iconic landmarks, vibrant cities, natural wonders, cultural experiences, educational exchanges and advanced healthcare options. The U.S. Commercial Service can advise and assist the U.S. travel industry on the Indian tourism media ecosystem to maximize exposure and facilitate communication with specific publications. U.S. destinations should also consider the following local trade show to meet with India travel trade industry or come see us at the U.S. Pavilion at U.S. Pavilion at OTM 2026, February 5-7, 2026, Mumbai.  

For more information, market research, details about current travel trends, or establishing a local presence in India, please contact your nearest local U.S. Export Assistance Center or Travel and Tourism team at the U.S. Commercial Service in India.