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India is the fourth-largest source of inbound tourists to the United States, after Canada, Mexico and the United Kingdom.

New Delhi: Indian tourist arrivals in the United States dropped 15% in August compared to the same month last year, according to provisional figures from the National Travel & Tourism Office (NTTO).

This marks the third straight month of decline, following an 8% fall in June and 6% in July, as trade and diplomatic tensions between the United States and India escalated.

Spending Impact on US Businesses

According to a report by the August decline could cost American businesses an estimated 340 million dollars in lost visitor spending over the summer period. Across June to August, Indian tourist visits were down by about 10% from 2024 levels. This contrasts sharply with the previous summer, when visits rose 35% in June, 26% in July and 9% in August year-on-year.

Indian tourists are regarded as high-value visitors. In 2024, each traveller spent an average of 5,200 dollars per trip, nearly three times the global average of 1,802 dollars. India is the fourth-largest source of inbound tourists to the United States, after Canada, Mexico and the United Kingdom.

Geopolitical Tensions and Policy Barriers

Observers have linked the downturn to ongoing strains over tariffs, Russian oil imports, and disagreements around a proposed ceasefire between India and Pakistan. US President Donald Trump’s decision to impose a 25% reciprocal tariff on Indian goods has been identified as a likely factor behind the drop in visitor numbers.

Earlier this year, Brand USA had mounted its largest-ever sales and media mission in Hyderabad, with surveys showing 86% of Indian travellers were keen to visit within two years. However, recent geopolitical developments appear to have cooled that sentiment.

Visa wait times remain another obstacle. Indian applicants face an average delay of four months, compared with three weeks for the United Kingdom and four to six weeks for Canada.

India’s outbound tourism remains one of the fastest growing in the world, with spending projected to reach 144 billion dollars annually by 2030.