Highlights:
- Indian arrivals to the US fell 15 percent in August 2025, marking a third straight monthly decline
- Estimated loss in spending reached $340 million
- Visa delays, tariffs and geopolitical disputes are key drivers
- India remains one of the most valuable outbound markets for the US
Indian tourist arrivals to the United States fell by 15 percent in August 2025, according to provisional figures from the National Travel and Tourism Office (NTTO). The drop, linked to diplomatic friction and trade disputes, resulted in an estimated $340 million loss in visitor spending. This is the third consecutive monthly decline and a setback for American businesses that rely on international travelers.
A third month of decline
The August drop followed an 8 percent fall in June and a 6 percent fall in July. The trend stands in sharp contrast to 2024, when arrivals surged 35 percent in June, 26 percent in July and 9 percent in August. Tariffs on Indian goods, disagreements over Russian oil imports and tensions tied to the proposed India Pakistan ceasefire have all played a role.
Economic weight of Indian travelers
Indian tourists spend an average of $5,200 per trip, almost three times the global average. India is the fourth largest source of inbound tourism to the US after Canada, Mexico and the UK. The current downturn has affected hotels, restaurants, retailers and entertainment providers across the country.
Key drivers behind the decline
- Diplomatic strains including tariff disputes, Russia policy and South Asian conflicts
- Visa delays with Indian applicants waiting up to four months compared with three weeks for UK travelers and six weeks for Canadians
- Trade tariffs including a 25 percent reciprocal tariff on Indian goods introduced by President Donald Trump
- Brand USA challenge despite a record sales mission in Hyderabad showing high interest from Indian travelers, political headwinds have cut demand
Wider tourism context
India’s outbound travel market is one of the fastest growing and is expected to reach $144 billion annually by 2030. The US now faces stronger competition from Europe, the Middle East and Asia, where Indian travelers find faster visa approvals and fewer political complications.
Visa delays as a critical barrier
Visa processing is a major deterrent. While travelers from the UK and Canada often secure approvals in weeks, Indians can wait months. This has discouraged both leisure and business trips and pushed many travelers to destinations where approvals are quicker and travel is more convenient.
