India’s inbound tourism declined steadily from January to September, even as global travel rebounded
Foreign tourist arrivals in India declined by over 900,000 visitors in the January to October, 2025, reflecting a drop in appeal of the country as a global tourism destination.
According to Ministry of Tourism, inbound tourism of India slowed every month from January, dropping to about 6.6 million by September, despite a global travel rebound.
The decline has heightened concerns over reduced international promotion and its impact on foreign exchange earnings and India’s tourism competitiveness.
In a report by Ministry of Tourism, monthly data shows that FTAs were lower in every month of 2025 compared to the same period in 2024. Arrivals in January slipped from 9.8 pc in 2024 to 9.6 pc in 2025, followed by a sharper fall in February from 10.3 pc to 9.2 pc. The decline intensified in March, with FTAs dropping from 8.9 pc to 7.4 pc and continued through the summer months.
The downturn became more pronounced from May onwards, when arrivals fell from 6.2 pc in 2024 to 4.7 pc in 2025, while June declined from 7.2 pc to 5.5 pc. The traditionally softer monsoon quarter also failed to show a recovery, with July arrivals falling from 8.0 pc to 6.7 pc, August from 6.6 pc to 6.3 pc, and September from 6.9 pc to 6.2 pc.
The Ministry’s data indicates that inbound arrivals softened further during the July-September quarter, making it the weakest phase of the year so far and pulling down the overall performance for the first nine months of 2025. This sustained monthly decline underscores the slower-than-expected rebound in inbound tourism.
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Region-wise, Asia-Pacific accounted for 36.8 pc of foreign tourist arrivals in January-September 2025, followed by Europe at 28.9 pc, together contributing nearly two-thirds of total inbound traffic, while the Americas accounted for 23.5 pc. Leisure and holiday travel formed 34 pc of inbound visits, with the Indian diaspora segment close behind at 32.7 pc, highlighting India’s continued dependence on these segments for foreign tourist arrivals.
Sharp cut in overseas promotion raises concern
The decline in inbound tourism comes at a time when international promotion spending has been sharply reduced. Under the Union Budget 2026, the allocation for promoting India as a global tourist destination has been cut by over 90 pc INR 35 million for FY27, down from INR 435 million in the current fiscal, bringing overseas tourism promotion spending to less than one-tenth of last year’s level.
Although the overall tourism allocation in Union Budget 2026 stands at over INR 24.3 billion, most of the funding is focused on domestic tourism, particularly infrastructure and destination development in Tier 2 and Tier 3 cities. Industry stakeholders argue that this imbalance risks weakening India’s international visibility at a time when global competition for travellers has intensified.
Presenting the budget, Finance Minister Nirmala Sitharaman said tourism has strong potential to drive employment, foreign exchange earnings and local economic growth. India Outbound notes, however, that cutting international promotion undermines these objectives, as foreign exchange earnings are closely linked to inbound visitor numbers.
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According to the statement, the decline is particularly striking because it occurred despite a significant depreciation of the Indian rupee. From INR 83.23 per US dollar in January 2024, the currency weakened to INR 89.88 per dollar by December 2025, a move that should, in theory, have made India a more price-competitive destination for overseas travellers. However, the data suggests that lower costs alone have failed to translate into higher arrivals.
India’s decline stands out amid global rebound
The contrast with global trends is sharp. Several destinations across Europe and parts of Asia recorded robust growth in international arrivals in 2025, supported by sustained marketing campaigns, proactive visa facilitation and strong air connectivity. These markets also benefitted from higher tourist spending and stronger shoulder-season demand.
Against this backdrop, India’s continued fall in foreign tourist arrivals during January-September 2025 stands out. Industry observers caution that while initiatives such as upgrading hospitality education, skilling 10,000 tourist guides and developing adventure and eco-tourism circuits are positive long-term measures, they are unlikely to reverse the immediate decline in arrivals without parallel investment in global outreach and destination branding.