U.S. Tourism Slump: Indian Visitors Fall After 24 Years of Growth

(UNITED STATES) Indian visitors to the United States fell for the first time in 24 years, excluding the COVID-19 period, marking a sharp turn in one of the world’s most reliable travel flows. In June 2025, arrivals from India dropped 8% to about 210,000, down from roughly 230,000 a year earlier. Provisional figures for July 2025 point to a further 5.5% year-over-year decline.

The downturn matches a wider tourism decline in overall international arrivals, with non-U.S. resident visitor volume down 6.2% in June compared to June 2024, according to U.S. travel data tracked month by month this year.

Where India fits in U.S. arrivals

• India is the fourth largest source of international visitors to the United States and the second largest overseas market after the United Kingdom.
• Canada and Mexico send more travelers overall because of land borders.
• Alongside the UK, Canada, Mexico, and Brazil, India helped make up nearly 60% of all international arrivals in June 2025.

A slowdown across this set of countries hits U.S. airports, hotels, universities, and convention centers simultaneously, hurting economies in gateway cities and college towns across multiple states.

Nature of India-to-U.S. travel

Unlike many markets, India’s flow to the United States is driven less by leisure tourism and more by:

• Students
• Professionals
• Family travel

The softest numbers this year are among student travelers. Causes include consular backlogs, tighter rules on interview waivers, and higher visa and admission fees introduced for FY2025. These factors make it harder to plan summer and fall intakes.

If interview bottlenecks continue into late 2025, planners warn the weakness could spread to business trips and family visits.

Outbound travel demand and destination choices

April 2025 was a strong month for Indian outbound trips overall—about 2.9 million Indians traveled abroad, led by the UAE, Saudi Arabia, Thailand, and Singapore, then the United States. That indicates the issue is not lack of demand for international travel but where travelers choose to go.

Industry analysts say many Western destinations saw softer Indian arrivals after a series of aviation disruptions and security scares. According to analysis by VisaVerge.com, the United States is feeling these headwinds more than most because policy friction has risen at the same time as airline routes have grown less reliable.

Visa bottlenecks and policy headwinds

Several shocks in 2025 have weighed on flight confidence and schedules:

• The Pehelgam terror attack in India rattled travelers.
• Pakistan’s airspace closure to Indian carriers forced longer routes and added uncertainty to U.S. connections.
• The Air India Ahmedabad crash in mid-2025 further hurt public confidence in flying.

While airlines can adjust schedules, sentiment tends to lag after safety incidents, and families often delay big trips.

On the policy front, visa processing is the number one complaint from students, athletes, and tourists:

• In early 2025, the administration of President Trump narrowed who can skip an interview under the interview waiver policy. Fewer people now qualify, pushing more applicants into in-person slots and increasing wait times at U.S. consulates in India—especially during peak student seasons.
• The federal government raised visa and admission fees in FY2025, increasing costs for first-time and repeat travelers.
• Funding for Brand USA—the public-private agency that promotes U.S. travel abroad—was cut from $100 million to $20 million, shrinking marketing reach in key growth markets like India.

Travel groups warn that pulling back on promotion while processing gets slower risks losing market share to easier destinations in Asia and the Middle East.

The World Travel & Tourism Council says the United States is the only one among 184 countries it studied to see a drop in international visitor spending in 2025, estimating a loss of around $29 billion tied to tighter immigration rules and travel bans.

Julia Simpson, the council’s president and CEO, has argued that other countries are rolling out welcome mats while the United States is raising hurdles—an imbalance that shows up in the latest arrival data.

Inside the Indian market, a small but notable shift is happening: Indians who hold valid U.S. visas can travel to Argentina without getting an additional visa. Tour operators say more multi-stop trips may now combine South America instead of a long U.S.-only itinerary—especially when American consulate appointments are scarce.

Practical advice for Indian travelers

The latest figures don’t mean travelers should give up on U.S. trips, but they do mean planning needs to start earlier and paperwork must be complete.

For nonimmigrant visas like B-1/B-2 (business/tourist) and F-1 (student), applicants submit Form DS-160 online. Find official guidance here:

• General visa rules and updates: U.S. Department of State – Visa Services
• Form DS-160 portal: Form DS-160 portal

Recommended actions:

1. Start the visa process early. With fewer interview waivers since February 2025, assume you’ll need an in-person appointment.
2. Prepare a complete file:
   • Students: signed admission letter and proof of funds.
   • Tourists/business visitors: a clear travel plan and strong ties to India (employment, family documents).
3. Watch fees and timelines. New visa and admission fees for FY2025 are in effect—factor them into your budget.
4. Check flight routing. With Pakistan airspace closed to Indian carriers, monitor schedules for longer flying times and build extra buffer days.
5. Carry the right ID for domestic connections. Starting May 7, 2025, adults need REAL ID–compliant identification for U.S. domestic flights.
6. Track consulate wait times weekly. Interview slots can open suddenly; rescheduling to an earlier date is possible if you check often.

Sector impacts: education and business travel

Education:
– If fall 2025 intake underperforms, colleges could feel effects in housing, research funding, and local spending.
– A typical Indian graduate student supports tuition and local businesses—restaurants, transit, and rentals. Deferred students mean those dollars don’t arrive.
– A senior admissions officer at a Midwest public university noted rising no-show rates for orientation: “Yield is fine on paper, but late visas are turning offers into spring starts.”

Business travel:
– U.S.-India tech ties rely on quarterly face-to-face visits. Tightened interview waivers mean frequent travelers who once renewed quickly now need live interviews.
– Missed meetings accumulate. An Indian sales manager for a cloud firm described shuffling three client visits into virtual calls after his renewal appointment slipped six weeks. Deals closed eventually, but the travel rhythm that kept accounts warm has cooled.

Policy responses and upcoming tests

Congress is asking agencies to prove they can process visas quickly enough for upcoming mega-events:

• 2026 FIFA World Cup
• 2028 Olympics

Lawmakers want clear plans for temporary staffing spikes at consulates and ports of entry. If fixes arrive late, they won’t help the current slump in Indian arrivals.

Travel consultants suggest modest steps that could improve the situation:

• Restore interview waiver eligibility to pre-2025 levels for low-risk renewals to free up officer time for first-time students.
• Provide targeted funding to Brand USA in key markets to restart positive messaging.
• Focus efforts to cut extreme wait times at U.S. posts in India for immediate results.

VisaVerge.com reports families decide based on predictability: if the process is smooth, they go; if not, they pick another destination.

Broader implications and outlook

• Countries that combine friendly policies with steady air links—like the UAE and Singapore—are picking up Indian travelers who might otherwise have visited New York, Orlando, or the Bay Area.
• The tourism decline harms resorts, universities, medical centers, and tech hubs that rely on Indian visitors year-round.
• Domestic U.S. travel is growing in 2025, with Americans spending on local and nature-focused trips, which supports parts of the travel economy—but that doesn’t replace lost international receipts or benefit graduate programs built on overseas enrollments.

The loss in Indian visitors matters because their trips are often long, spending is high, and connections are deep—from alumni networks to business partnerships across sectors.

For Indian families:
– Apply early, double-check documents, and stay flexible on travel dates.

For U.S. policymakers:
– The choice is clear: keep raising barriers in a tight global market, or make it easier for people to study, meet, and visit—and rebuild the steady growth that defined the last two decades.

If the past two months are any guide, getting that balance right will decide whether the summer of 2025 goes down as a blip—or the start of a longer slide.