The Strategist

McKinsey: Indian tourists will enter Top 4 travelers in terms of travel expenditure

11/03/2023 - 05:28

Forecasts from analysts at the travel aggregator and consulting firm McKinsey indicate that by 2030, Indian travelers will be the fourth group globally in terms of spending on travel and shopping expenses.

The US, China, and Germany will continue to be the top three nations. Currently, when it comes to the amount that Indians spend on travel, they only come in sixth place in the globe. At that, only 1% of them is traveling abroad.

Indian tourists will go abroad for around 50 million of their estimated 5 billion annual travels by 2030. Travel expenditures by Indian nationals will increase in tandem with the country's growing tourism popularity. Indians spent $150 billion on domestic and international travel in 2019, but by 2030, that sum is projected to nearly triple to $410 billion. By 2030, Indians would spend a larger percentage of their income—35 percent—on international travel, up from 25 percent currently.

In contrast to the expansion of the local economy and personal prosperity, Indians are beginning to travel more actively. In 2020, there were just 2 million Indian homes earning $35k or more annually; by 2030, there would be 13 million such households. The government of the nation supports the interest of its people in tourism; in the last 10 years, over $200 billion has been invested in the growth of the nation's transportation industry.