Domestic tourism is growing rapidly in India. MICE, destination weddings, and new tourism destinations in smaller cities are driving the travel industry's growth. This appears to be unaffected by costly FTAs.
Travel craze in India
India's travel sector is currently undergoing significant change. Amid challenges related to international travel, Indian tourists are now exploring more options for travel within the country. Domestic tourism, destination weddings, and the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector are driving the travel industry's growth. This was revealed at TTF 2026 in Mumbai, where travel industry leaders noted that India's domestic tourism is growing rapidly despite global uncertainty, visa difficulties, and expensive air fuel.
Foreign travel is difficult; domestic tourism becomes a support
According to Rajesh Poddar, President of the Western Region of the Travel Agents Association of India (TAAI), changing conditions in the US and Europe, visa-related challenges, and tensions in West Asia have impacted international travel. Furthermore, rising aviation fuel (ATF) prices have made air travel more expensive. This is increasing the budget for foreign travel. Consequently, Indian tourists are exploring new and less popular destinations within the country.
Over 4.3 billion domestic trips by 2025
According to TAAI, India recorded over 4.3 billion domestic travel trips in 2025. Meanwhile, approximately 32.8 million Indians traveled abroad. This figure is reported to be 6.3 percent higher than in 2024. This means that while Indians have traveled abroad significantly, the trend of traveling within the country has increased even more.
MICE and destination weddings also boom
It's worth noting that the travel industry's growth isn't limited to just tourism. Corporate MICE and destination weddings are also growing rapidly. Corporate MICE has seen growth of approximately 10-15 percent, and destination weddings have seen growth of 15-20 percent. This entire segment is projected to grow at approximately 12-14 percent annually over the next few years.
These cities are also becoming favorites
Cities like Goa, Udaipur, Jaipur, Kochi, Varanasi, and Indore are now also being preferred for destination weddings and MICE. This trend can benefit not only hotels and airlines, but also local businesses.
These businesses can benefit
- Hotels and resorts
- Homestay
- Local taxis and transport
- restaurant
- Tour Guide
- Local Handicrafts
- Event and Wedding Companies
Spiritual and wellness tourism also increased
According to the travel industry, Indian tourism is no longer limited to mountains, seas, and historical sites. Spiritual tourism, wellness tourism, medical tourism, and sports tourism are also rapidly growing. From religious cities like Ayodhya and Varanasi to destinations focused on wellness and medical tourism, new options are emerging for tourists.
India has reached the eighth position in the global tourism economy, contributing approximately $231.6 billion. According to Sanjeev Aggarwal, President and CEO of Fairfest Media Limited, while the world may be experiencing uncertainty regarding travel, Indians are traveling more within the country than ever before. Domestic tourism is the strongest global story today, and Mumbai is a key hub for this market.
