India’s tourism sector is navigating a challenging phase as foreign tourist arrivals (FTA) record a notable decline in recent months, raising concerns among policymakers, industry stakeholders, and local economies dependent on international travel. Official data indicates that foreign arrivals fell sharply in the second quarter to 1.65 million, compared with 2.62 million in the first quarter. Although the third quarter saw a modest recovery to 1.92 million, the broader trend continues to signal headwinds for India’s inbound tourism industry.
Industry experts say the slowdown is not the result of a single issue but rather a convergence of seasonal patterns, geopolitical uncertainty, and changing regional travel dynamics, particularly a steep fall in visitors from neighboring Bangladesh—traditionally one of India’s largest source markets.
Bangladesh Visitor Decline Hits Key Regions
One of the most visible factors behind the dip has been the reduction in tourists from Bangladesh, a country that has historically contributed significantly to India’s inbound numbers. Border states such as West Bengal, especially cities like Kolkata, have long benefited from Bangladeshi travelers visiting for shopping, healthcare, religious tourism, and leisure.
Tourism analysts point to visa-related challenges, evolving bilateral dynamics, and shifting travel preferences as reasons for the decline. “Bangladesh has always been a backbone market for eastern India. Any disruption there has a disproportionate impact on overall FTA figures,” said a senior travel industry executive, requesting anonymity.
The drop has had ripple effects across hotels, transport services, and small businesses in border regions, many of which rely heavily on short-haul international travelers.
Seasonal Slump Meets Global Uncertainty
Seasonality has compounded the issue. Traditionally, April to June marks an off-peak period for international tourism to India due to extreme summer heat in many parts of the country. However, experts note that geopolitical tensions and global instability have deepened the seasonal dip this year.
“Travelers today are far more cautious. When geopolitical risks rise globally, tourists tend to gravitate toward destinations they perceive as politically stable and logistically simple,” said a senior tourism consultant based in New Delhi. South Asia, despite its rich offerings, has faced increased scrutiny from international travelers weighing safety and predictability.
Government Push to Revive Tourism Momentum
Recognizing the urgency, the Ministry of Tourism has accelerated efforts to reposition India as a competitive global destination. Officials say the current slowdown is being treated as a structural challenge rather than a short-term anomaly.
A senior ministry official said, “Tourism is a long-term play. While external factors affect arrivals temporarily, India’s diversity, heritage, and scale give it the ability to bounce back stronger.”
Spotlight on Infrastructure and Destination Development
Among the flagship initiatives is Swadesh Darshan, a program focused on developing tourism infrastructure in culturally and historically significant regions that remain underexplored. The initiative aims to spread tourist footfall beyond traditional hotspots and promote experiential and sustainable tourism.
In parallel, the government continues to invest heavily in airport expansion, regional connectivity, road networks, and hospitality infrastructure, seeking to make travel smoother and more appealing for international visitors.
Spiritual Tourism and Pilgrimage Push
Another major pillar of the revival strategy is spiritual tourism. Through the National Mission on Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive, India is upgrading facilities at major religious destinations. With global interest rising in wellness, spirituality, and slow travel, officials believe India’s spiritual circuits can attract a new segment of international tourists.
“Pilgrimage and spiritual tourism is not seasonal in the traditional sense. It offers India a chance to stabilize arrivals throughout the year,” said a policy advisor familiar with the program.
Betting Big on MICE Tourism by 2026
Looking ahead, India is also setting its sights on the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment. Plans are underway to establish City MICE Bureaus by 2026, aimed at transforming major Indian cities into global hubs for international conferences and business events.
The move reflects a strategic shift toward high-value business tourism, which often delivers higher per-capita spending and year-round demand. Industry leaders say cities such as Delhi, Mumbai, Bengaluru, and Hyderabad are well positioned to compete with established Asian MICE destinations.
Global and Local Impact
India’s tourism performance has implications beyond its borders. As one of the world’s most diverse travel destinations, fluctuations in India’s inbound numbers influence global tour operators, airlines, and hospitality chains. A revival would not only boost India’s economy but also strengthen regional tourism flows and cross-border travel partnerships.
At the local level, increased foreign arrivals could provide a much-needed boost to employment, small businesses, and urban economies, particularly in heritage cities and emerging destinations.
A Cautious but Hopeful Outlook
While the current decline in foreign tourist arrivals reflects real challenges—from geopolitics to regional travel shifts—industry observers remain cautiously optimistic. With sustained infrastructure investment, destination diversification, and a strategic push into spiritual and business tourism, India appears determined to reclaim momentum.
As one tourism official summed it up: “India’s story has always been about resilience. The numbers may be down today, but the foundations for a strong recovery are being laid.”
