US Tourists Account For 17% Of Foreign Arrivals In India
By Amit Kumar
Renewed Indo-US relations are set to transform the travel landscape as we enter 2025. The main factor is the increasingly close ties between the two countries in trade, business, technology, and culture. With over two million Indians travelling to the U.S. in 2024, this trend demonstrates the essential role of travel in further strengthening a closer bond between the U.S. and India. Rekindled trade and business opportunities have already bolstered travel, reflecting strengthened bilateral relations. The travel relationship between India and the USA presents substantial economic opportunities for both nations, fostering cultural exchange and mutual growth.
What the Stats Reveal
We all know India has emerged as the second-largest travel market for the U.S. in 2024. As per the statistics shared by the U.S. Embassy, more than two million Indians travelled to the United States till November of 2024, a 26 per cent increase over the same period in 2023. And, in the past four years, visitor numbers from India have increased five-fold. This demonstrates the enormous demand among Indians to visit the U.S. for business, tourism, and education.
In January 2025, Brand USA held its 11th sales mission in India. A delegation of 48 U.S. companies and 67 exhibitors participated, engaging with senior Indian decision-makers from the travel trade industry. This signifies why India is an important travel partner for the United States. This has the potential to offer many chances for both economic cooperation and cultural interchange.
The Resurgence of Travel
Overall, the travel industry is experiencing a robust recovery, with projections indicating that international travel will continue to gain momentum. According to the World Travel and Tourism Council, India’s tourism sector is expected to contribute nearly $253 billion to its GDP in 2024, surpassing pre-pandemic levels. This resurgence is not just about numbers; it reflects a deeper desire for connection and exploration that transcends borders. On the other hand, according to the U.S. Travel Association, for 2025, U.S. travel spending is projected to grow by 3.9% to $1.35 trillion.
Economic Impact
Tourism serves as a significant economic driver for both nations. American tourists are projected to contribute substantially to the Indian economy, while Indian travellers are increasingly exploring the diverse landscapes and cultural experiences the U.S. has to offer. According to the data released by the Tourism Ministry of India, from January to October 2024, 17.01 per cent of foreign tourist arrivals were from the United States.
The U.S ranks as India’s third largest foreign investor with increased opportunities for investments in Fintech, Semiconductors and electronics, Healthcare, and Pharma as much as in the Services industry.
Niche sectors such as wellness, and adventure tourism are gaining traction as many Indian travellers seek activities beyond traditional attractions. Add to this the new administration’s chances of reviving earlier conversations in the defence, energy, agriculture, education and healthcare service – the business traffic between the two nations – only sees a more promising time.
The U.S. continues to be the preferred destination for Indian students. And the accompanying family travel also significantly boosts tourism revenue.
Cultural Exchange s
Travel is a powerful medium for fostering understanding and connection; it is not merely a transactional experience. The half-million-strong Indian diaspora enriches the Indo-US relationship and acts as a natural bridge that boosts travel. The ‘Mahakumbh’ this year saw an exponential number of visitors from the U.S. alone. As more Indians travel to the US and vice versa, they bring with them their unique cultures, traditions and perspectives. Both societies benefit from this interchange, which also establishes the foundation for future diplomatic ties. In 2025, it is anticipated that there will be a sustained focus on cultural tourism, where travellers will look for genuine opportunities that allow them to interact with local communities.
Role of Technology
Technological integration is expected to redefine travel experiences by 2025. Innovations in AI are set to revolutionise the travel industry, enhancing customer experiences. Technology is a driving force in shaping the future of travel and Indo-US relations. As both nations are working closely to innovate in fields like AI, cybersecurity, and aviation, the role of technology will play a pivotal role in their partnership.
The Future of Travel
The era of travel in 2025 heralds a new chapter in India-US relations, characterised by economic collaboration, cultural exchange and innovative travel experiences.. The journey ahead, I believe, is not just about destinations; it is about building bridges between people, cultures and economies. As both nations navigate the evolving landscape of international travel, the emphasis on shared data, innovation in global travel systems, and processes will play a more pivotal role in fostering deeper connections and mutual understanding.
(Sharma is Head-Americas, VFS Global)
