Washington: Indian outbound travel to the United States witnessed a sharp 15% decline in August 2025, compared to the same period last year, according to preliminary data from the US National Travel and Tourism Office (NTTO).
This marks the third consecutive month of decline, with June and July seeing drops of 8% and 6%, respectively.
The downturn is being attributed to escalating geopolitical tensions between India and the US, including disputes over trade tariffs, India’s oil imports from Russia, and diplomatic friction over ceasefire statements involving Pakistan.
The impact has been significant — the US tourism industry reportedly lost around 340 million dollars in revenue during the summer season due to the fall in Indian tourist arrivals.
This decline comes in stark contrast to the travel boom of 2024, when Indian tourist numbers to the US surged by 35% in June, 26% in July, and 9% in August.
Experts believe that recent policy decisions, such as former US President Donald Trump’s 25% tariff on Indian goods, have played a major role in dampening travel enthusiasm.
Indian tourists are considered high-value visitors by the US tourism sector. In 2024, the average Indian tourist spent approximately $5,200 per trip — nearly three times the global average of $1,802. India ranks fourth in terms of tourist arrivals to the US, following Canada, Mexico, and the United Kingdom.
Earlier this year, the US tourism department launched an aggressive campaign to woo Indian travellers. Brand USA hosted its largest-ever promotional event in Hyderabad in January, featuring 48 American companies and 67 exhibitors. A survey conducted during the event revealed that 86% of Indian respondents expressed interest in visiting the US within the next two years.
However, the enthusiasm has been dampened by recent geopolitical developments and logistical hurdles. One of the major challenges remains the lengthy visa processing time. On average, Indian tourists wait nearly four months for a US visa, compared to just three weeks for the UK and four to six weeks for Canada.
Despite the current dip, India remains one of the fastest-growing outbound tourism markets globally. Projections suggest that, by 2030, Indian travellers will spend an estimated $144 billion annually on international travel. While the US remains a top destination, experts warn that unless diplomatic and visa-related issues are addressed, the country risks losing a significant share of this lucrative market.