Indian Travel Market Projected to Grow Significantly Over Next Decade - News

India’s outbound tourism spending is projected to increase from US$ 18.82 billion in 2024 to US$ 55.39 billion by 2034, according to the ‘Navigating Horizons’ report by Nangia NXT and the Federation of Indian Chambers of Commerce & Industry (FICCI). The report reveals that packaged tours dominate the outbound market, holding a 39.2 percent share in 2024 as a result of the tour package’s convenience and customization options.

The availability of Indian or vegetarian food and awareness of niche tourism is expected to increase the number of Indian travellers abroad. Countries like Egypt, Azerbaijan, and Georgia, which are known for their rich history and affordability, are attracting more Indian tourists. Factors such as rising disposable incomes, an expanding middle class, easier visa processes, and a growing need for international experiences are key drivers of this growth. 

Suraj Nangia, Head-Government and Public Sector Advisory, Nangia NXT, emphasized that the country’s outbound tourism market is expected to grow at a CAGR of 11.4 percent, reaching US$ 55.39 billion by 2034. In turn, this growth will benefit foreign economies and boost the country’s gross domestic product (GDP) and international economic ties. Factors contributing to this are increased consumer spending, visa reforms, and better connectivity. 

Ahetesham Khan, Executive Director, Nangia Andersen LLP, added that higher disposable incomes and a growing interest in international adventures fuel this surge. The report also highlights the role of technology and social media in shaping travel decisions, making trip planning and booking easier and more accessible.