India Enters A New Travel Economy Phase As Foreign Exchange Outflow Rises With Growing Overseas Travel Demand

India’s position in travel foreign exchange has undergone a major shift in recent years. The country, which maintained a net positive travel foreign exchange balance until around 2021, has now moved into a net negative position as spending by Indian travellers overseas exceeds the expenditure made by international visitors in India. The development was highlighted by Shri Bhuvnesh Kumar, IAS, Secretary, Ministry of Tourism, Government of India, during a session on “India Tourism Growth, Investment and Global Opportunities” at the second edition of the ICC Global Business Summit 2026 held at Taj Palace, New Delhi. The session focused on unlocking new opportunities for tourism growth, investment and global expansion.

“Till about 2021, we used to be net foreign exchange positive on travel, and now we are net foreign exchange negative. That means Indians are spending more abroad than the foreigners coming and spending in India. The industry needs to be ready for that and offer tourism experiences which are at par with the best in the world,” Shri Kumar said.

Domestic tourism recorded a strong rise, with domestic trips reaching 429 crore in the previous year. The expansion is also encouraging major hotel companies to accelerate their growth plans. One hospitality group with around 365 properties in operation has announced plans to add nearly 300 more hotels over the next three years. This growth is spreading beyond major metropolitan areas, with Tier 2 and Tier 3 cities emerging as new investment destinations. Rising domestic travel demand has reduced the traditional risks that previously limited premium hotel development to well-established tourism and business hubs.

The Secretary cautioned against chasing volume. “We don’t really need more domestic tourism. We need distributed demand,” he said, adding that demand must be shifted to other places. The Ministry has formulated Dekho Apna Desh 2.0 to steer travellers from popular destinations to lesser-visible ones. Among the places he named were Turtuk in Ladakh, Gurez and Doodhpatri in Jammu and Kashmir, and Varkala in Kerala.

Shri Kumar highlighted several recent changes introduced in India’s visa and digital tourism framework. He explained that the number of visa categories has been streamlined from 22 to nine, while the medical value visa duration has been extended to one year from the earlier 60-day period. He also noted that India’s e-visa facility is now accessible to travellers from 171 countries.

Discussing digital transformation initiatives, he said the Ministry launched an ONDC pilot project in Varanasi featuring around 180 tourism products. The initiative has now expanded, with nearly 23,000 tourism products and experiences identified across India. The Ministry is also developing a unified customised travel pass to simplify and improve the travel experience for visitors.

The shift towards experience-led, digitally connected travel was echoed from the aviation side. Shri Harvinder Singh, Director, India Knowledge Center and Head, Middle East and India, United Airlines, said travellers now plan around experiences rather than places. “We are moving from destination to experience, and I am talking about the end-to-end experience. It is not only about the Taj Mahal or Jaipur or Agra today,” he noted. He also warned that emerging destinations may not sell as they should unless they are visible online. “The real estate on the digital platform is equally important as it is on the ground,” he said.

The view from another tourism economy came from H.E. Ms. Aliki Koutsomitopoulou, Ambassador of Greece to India, who said the number of Indian nationals travelling to Greece rose from 21,630 in 2022 to 29,523 in 2023 and 37,150 in 2024, citing India’s Ministry of Tourism data. She put the growth at almost 72 per cent in just two years. “The direct flights did not create Indian interest in Greece. The demand was already there. Connectivity can now unlock it,” she said. Direct scheduled flights between the two countries began in January 2026.

She said Greece set up a new special spatial framework for tourism in August 2026 to guide where investment goes and how much each destination can absorb. She added that the two tourism ministries are working towards an updated cooperation agreement, with the existing one having been signed in New Delhi in 1998. From 4 to 7 October, Rhodes will host the 40th anniversary convention of the Travel Agents Federation of India (TAFI), with more than 400 Indian travel professionals expected. “They will experience the destination themselves, meet Greek businesses, and return to India with products they can actually sell. That is how institutional cooperation becomes commercial reality,” she said.

Representing the perspectives of government, aviation and diplomacy, the three leaders highlighted a shared vision for the future. They emphasised that India’s tourism expansion can continue sustainably only when travellers have easy access to bookable experiences, digital platforms make destinations more discoverable and transport networks grow alongside rising demand.