Data and rankings last updated October 2024. For a detailed explanation of factors and data sources used to calculate these Top Export Marking Rankings, please see the Methodology section.
Market Overview
India is the world’s fifth largest economy with a GDP of $3.55 trillion and is expected to surpass Japan and Germany by the early 2030s to become the world’s third largest economy. India’s economy grew close to six percent from 2022 to 2023. Bilateral trade between the United States and India reached a record $128.78 billion in 2023.
International travel from India to the United States – bolstered by robust economic growth, a large and increasingly affluent middle class, the increased availability of air transportation, and strong ties between the two countries – is on the rise. In a 2024 survey, India’s leading online travel platform reported a 32% increase in the number of Indians taking two or more international trips per year. However, the destinations with the largest growth by volume for Indian outbound travel were Thailand, the United Arab Emirates (UAE), the United States, Kuwait, Singapore, and Bangladesh. In a traveler survey conducted by Brand USA, the United States’ destination marketing organization, Indian travelers cited shopping (55%), amusement/water parks (50%), state/national parks (50%), movie/TV landmarks (49%), and history/heritage attractions as the top five activities they are interested in participating in during their next United States trip.
Pre-pandemic (2015-2019), India was the ninth largest overseas (excluding Canada and Mexico) source market for international visitation to the United States, with 3.3% of overseas visitation. During this same period, India was the fourth largest overseas source market for travel exports to the United States, with 5.4% of U.S. travel exports. In 2019 alone, Indian 1.5 million Indian visitors spent $14.2 billion in the United States, accounting for 24.5% of overall U.S. exports to India. That same year, the United States was the second largest destination of global long-haul (outbound) travel from India, behind only the UAE, with a 11% market share.
International travel slowed considerably during COVID-19 pandemic. From 2019 to 2020, Indian visitation to the United States declined 77% to 336,000 arrivals. Fortunately, recovery has been swift. In 2022, Indian visitation to the United States recovered to 1,256,915 arrivals (85% of 2019 levels). By 2023, visitation reached 1,762,369, not only surpassing 2019 levels, but setting a new record number of arrivals.
Top States Visited by Indian Travelers in 2023
State Visited | Percentage of Indian Travelers Visiting |
New York | 28% |
California | 27% |
Texas | 14% |
New Jersey | 13% |
Illinois | 10% |
Brand USA, the United States’ destination marketing organization, compiles comprehensive information for top overseas markets. Below you will find the latest market insights from this key market regarding motivations and impressions of the United States:
Top Motivations for Selecting Last International Trip
- Treat myself and have fun (21%)
- Connect with my family of loved ones (15%)
- Satisfy a sense of adventure (14%)
- Reduce stress and recharge (13%)
- Learn about different cultures (12%)
- Special events (e.g. festivals, sports events) (12%)
- Visit faraway friends or family (9%)
Strongest Impressions of the United States
- Friendly (55%)
- Unique (50%)
- Energetic (49%)
- Welcoming (47%)
- Relaxing (47%)
- Creative (46%)
Trip Planning Sources
- Internet search (50%)
- Social media posts/photos by friends or family (44%)
- Reviews on websites/apps (43%)
- Social media posts/photos by travel providers or destinations (42%)
- Personal recommendations from family/friends or locals (41%)
- Social media posts/photos by celebrities/influencers/content creators (40%)
- Travel blogs or vlogs (38%)
Market Opportunities
Repeat Travelers Seeking New Experiences: Among Indian travelers who currently have a U.S. visa, a high number are repeat travelers to the United States, with second- and third-time travelers seeking new destinations and experiences. The U.S. Commercial Service team in India has noted an increase in demand among Indian travelers for unique experiences when they visit the United States. Many travel agents indicate that their clients have already visited the best-known attractions in the United States and now seek new experiences when visiting the country. These include sports and adventure packages, food and cultural festivals, and niche market activities. Destinations that have not traditionally drawn large numbers of Indian travelers may find success in catering to the growing number of travelers seeking new experiences.
Meeting, Incentive Travel, Conferences, and Exhibitions (MICE): India is poised to be the world’s fastest growing outbound MICE tourism market, expected to exceed $45 billion by 2025.
Education Spending: Of the over one million foreign students studying in the United States, one in five are Indian. India has been number two in U.S. education exports since 2010. In 2022 alone, international students from India contributed over USD $7.1 billion to the U.S. economy, and 24% of the overall international student population was Indian. There are 268,000 students from India studying in the United States, marking a 35% increase over the previous year. With an increasing number of students choosing the United States as their study destination, direct and indirect destination tourism in the form of student and family travel is expected to see continued growth.
Niche and Luxury Travel: One of the key segments being targeted by destinations and tourism stakeholders as they look at India for revival of tourism is luxury travel. In fact, 23% of Indian international travelers demonstrate a proclivity for shopping and luxury. The leading online travel platform in India reported a 10% increase of searches for business class flights in the international segments in 2024. In 2021, pleasure travelers accounted for nearly 52% of total Indian travelers to the United States, which is higher than the category of student travel. Many of these travelers are high-net-worth individuals whose preference appears to be wellness resorts and villa staycations in the most stunning and exclusive locations. Data shows that the average Indian visitor to the United States spends $5,187, among the highest of all international visitors. Additional interest is also building in niche tourism sectors such as medical, wellness, and adventure tourism.
Market Challenges
Visas: While there are currently long wait times for obtaining a first time B1/B2 visa, the U.S. Embassy and Consulates have taken several steps to streamline the visa application process and reduce wait times for Indian travelers. Initiatives such as the interview waiver program and the global entry program have been implemented to facilitate smoother travel for eligible individuals. In addition, there are currently over three million Indians who have a valid 10-year U.S. visa and constitute a major share of repeat travelers.
Last Minute/Flexible Booking Preference: According to a 2024 survey by MakeMyTrip, India’s leading online travel platform, Indians book half their international flight and hotel bookings less than 14 days before the travel date. Geographically near destinations such as Oman, Nepal, the UAE, and Azerbaijan see the highest last-minute bookings. Additionally, Indians are increasingly prioritizing planning flexibility, opting for flights without cancellation/change penalties and purchasing travel insurance. U.S. air carriers and hotels may position themselves more competitively by offering flexible bookings and last-minute travel deals/packages in this market.
Emerging Destinations Preference: While UAE, Thailand, and USA continue to dominate the overall list of preferred travel destinations for Indian travelers, interest in emerging locations is climbing exponentially. Travel planning searches for Almaty, Kazakhstan and Baku, Azerbaijan saw 527% and 395% increases, respectively, in 2024. Mid-size U.S. cities may find competitive opportunity marketing themselves to those interested in lesser-known destinations.
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