Indian outbound tourism is set to soar, with tourists expected to spend a staggering ₹1.54 lakh crore ($18.82 billion) on international travel in 2024, according to a report by FICCI-Nangia. This figure surpasses the ₹2.29 lakh crore ($28 billion) spent by nearly 27 million Indians in 2019, before the pandemic.

The study, titled 'Navigating Horizons: The Rise and Future of Indian Outbound Tourism,' reveals that approximately 28.2 million Indians traveled abroad last year, exceeding pre-pandemic levels. The report also forecasts a substantial rise in outward foreign exchange remittances, expected to average ₹11,600 crore ($1.42 billion) per month in 2023-24, a significant increase from the ₹3,280 crore ($400 million) monthly average recorded in 2018-19.

Remittance Growth and Tourism Projections

Despite the lower current projection compared to the previous estimate of ₹3.44 lakh crore ($42 billion) from two years ago, the report anticipates that spending by Indian travelers overseas will grow at a compounded annual growth rate of 11.4% to reach about ₹4.51 lakh crore ($55 billion) by 2034. The number of outbound departures from India is expected to nearly triple to 50 million by FY30, driven by improved connectivity with more direct and affordable flights and an increasing desire for international travel.

New Destinations Gain Popularity

The report highlights that new popular destinations for Indian tourists include Egypt, Azerbaijan, Georgia, Indonesia and Malaysia due to relaxed visa norms. Currently, 50 nations offer visa-on-arrival and e-visa facilities to Indians, while 27 countries allow visa-free entry. The surge in outbound tourism from India is attributed to rising disposable incomes and an expanding middle class population.

Destination Preferences

More than 30% of Indian travelers are choosing Middle Eastern destinations like UAE, due to its proximity and significant Indian diaspora presence. Travel from India to the US has seen a significant increase of 59% from 2019 levels, despite overall overseas arrivals in the US being 7% below pre-pandemic levels. Japan and Vietnam have also become favored destinations for Indian travelers, with a 53% increase in visitors to Japan since 2019 and new direct flights to Vietnam tripling passenger traffic.

As the tourism sector recovers to pre-pandemic levels and new destinations gain popularity, Indian tourists are poised to make a significant impact on the global travel landscape in the coming years.