India’s tourism sector is entering a defining era. Once seen primarily as a destination, India is now emerging as a powerful source market for global travel.
The Source Market Insight: India (2025) report reveals a striking shift: Indian travellers are venturing abroad in unprecedented numbers, reshaping international tourism flows and spending patterns.
This transformation is fueled by a combination of factors: rising disposable incomes, expanding air connectivity, and a digitally empowered middle class eager to explore the world.
The report paints a vivid picture of the modern Indian traveller as young and aspirational, with millennials and Gen Z driving outbound travel, seeking experiences beyond traditional sightseeing. Family-oriented — Group and family trips remain strong, with multi-generational travel becoming a hallmark of Indian tourism. Digitally savvy — Platforms like MakeMyTrip, Cleartrip, and Yatra dominate the booking landscape, offering personalised itineraries and competitive deals.
While outbound travel is booming, domestic tourism remains the backbone of India’s industry. Festivals, heritage circuits, and spiritual journeys continue to draw millions across the country.
The report notes that domestic trips are increasingly blending leisure with wellness, as Indians embrace retreats and eco-tourism within their own borders.
Outbound travel is where India’s global impact is most visible. For example, established destinations such as the UAE, Singapore, Thailand, and the UK remain perennial favourites, offering shopping, cultural familiarity, and ease of access.
There are also emerging destinations. Eastern Europe, Africa, and Latin America are gaining traction as adventurous travellers seek fresh experiences beyond the usual hubs.
Indian tourists are spending more per trip than ever before. The report highlights a growing appetite for premium travel experiences: luxury hotels, curated tours, and wellness packages.
Yet, value-consciousness remains central — travellers want quality at competitive prices, a balance that global tourism businesses must navigate carefully.
The report underscores several opportunities for international tourism players, such as tailored family packages to cater to India’s group-travel culture; tech-driven solutions, including AI-powered trip planning and seamless digital payments; and sustainable tourism offerings, as younger travellers show increasing interest in eco-friendly travel.
India ranks among the most promising outbound markets globally. With its sheer scale, diversity, and spending potential, the country is positioned to become a game-changer in global tourism flows. Businesses that adapt to evolving preferences, blending affordability with premium experiences, stand to gain the most.
