Travel is India's Biggest Global Spending Category: Here's How Much They Spent

Skift

2 days ago

India's monthly international travel spending is crossing $1 billion consistently. As Indian travelers prioritize experiences and loosen purse strings, destinations worldwide are racing to capture this high-value market.
Indian travelers spent nearly $1.3 billion on international travel in April 2025. This is a 10% increase year-on-year and 13% higher than March, according to data from India's central bank Reserve Bank of India.
Travel accounted for over 51% of the total international spending by Indians during April, while in March this was around 44%.
The monthly international travel spending of Indians has consistently exceeded $1 billion, with it having reached $1.1 billion in February and $1.13 billion in March.
In fiscal year 2024, Indians spent a record $31.7 billion abroad. International travel accounted for 54% of this spending amounting to $17 billion. In the 2025 fiscal year while total overseas spending dipped to $29.5 billion, travel spending remained steady at $16.9 billion, signaling a stabilized international travel spending pattern post-Covid.
Notably, in August 2024, Indians spent over $2 billion on international travel, accounting for nearly 63% of that month's $3.2 billion in foreign spending.
Who's Driving This Surge?
India is becoming a fast-growing source of outbound tourism, according to a McKinsey report released last year. 'They are developing fast-growing pools of first-time tourists,' the report said.
According to Booking.com, travel spending among Indians is expected to go up from $150 billion in 2019 to $410 billion by 2030. It added that while outbound trips accounted for 1% of the total trips in 2023, these trips contributed to 25% of the total expenditure. The online travel company expects this to increase to 35% by the end of the decade.
Post-Covid, India's travel journey has been driven by its rising middle class, characterized by a young population with increasing spending power.
According to Skift Research's 2025 Travel Outlook Survey, travelers from India and China are most likely to say they'll be on the move this year. India also has a significant lead over other destinations in terms of anticipated travel spending in 2025, it added.
Experiences are a key part of this surge in travel. 'Once considered a luxury, travel has become a source of wellbeing and a way to gather unique experiences, which may constitute shopping, activities or even culinary experiences,' a recent report by consulting firm EY said.
American Express India also made a similar observation. 'From shopping for local and handmade goods, making a special trip for a luxury purchase or attending concerts and sporting events, Indian travelers are prioritizing unique experiences in 2025,' it said.
The report noted that the average length of stay among Indians increased by one day for domestic trips and two days for international trips in 2024 as compared to 2022. It further added, 'Indian traveler spending continues to grow with greater willingness to invest more in travel experiences. 80% of travel service providers have noticed increased travel budgets since 2022, with a quarter observing a rise of over 20%.'
The most significant budget increase has been in international travel, followed by niche trips, EY said. Indians were spending on international trips approximately four times that of domestic travel, despite budget hotels being more popular among Indian tourists for their global adventures.
EY also projected that the rise of short-haul destinations will lead to international travel growing at 18-20%.
Destinations Bet on Indians
The Indian traveler's growing appetite for international travel is making the country an increasingly attractive source market for global destinations. In 2024, India became the second-largest overseas market for the U.S., with 2.2 million Indian visitors.
U.S. destination marketing organizations are prioritizing India, citing strong spending potential. 'There is big money,' Liz Bittner, president and CEO of Travel South USA told Skift. She noted that 290,000 Indians visited the southern U.S. in 2024, spending $450 million. In 2025, that figure is projected to rise to $507 million from 314,000 travelers, nearly 150% more than pre-Covid levels.
Australia is also seeing a surge in Indian arrivals. In 2024, 443,000 Indians visited the country, a 12% year-on-year increase, their spending jumped 17%, Skift reported earlier this year. Nights spent by Indian travelers in Australia rose nearly 34%, reflecting deeper engagement.
Tourism Australia credits a simplified visa process for this growth. 'The Australia visa these days is the easiest and simplest thing,' said Nishant Kashikar, country manager for India and the Gulf. 'No biometrics, no personal interviews, no physical document submission, including your passport. The entire process is digital.'
Japan has also seen record-high Indian arrivals this year, supported by improved air connectivity.
Across Southeast Asia, Indian tourism is booming as countries ease visa restrictions. According to travel platform Agoda, countries like Malaysia, Palau, the Philippines, and Sri Lanka — where visa processes have been simplified — have seen a clear uptick in interest.
Agoda noted this trend by comparing accommodation searches between July–December 2024 for travel in January–May 2025 with the same period the previous year.