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Make destination holidays truly count as India weighs travel and trade-offs

India's rising overseas vacations strain the rupee, prompting government efforts to curb them, which prove trickier than expected. Domestic tourism, despite its growth, exacerbates rupee pressure via energy imports, intensified by subsidised fuel that disproportionately harms vulnerable groups. The author highlights structural issues within India’s tourism, like over-reliance on religious tourism. It advocates for diversifying the product portfolio, raising fuel costs to reflect true prices, and fostering cooperative federalism for infrastructure and skills. Prioritising domestic tourism is crucial to counteract the outflow from international travel, ensuring resilience and sustainability.

Economic Times · ET CONTRIBUTORS · May 15, 2026 at 5:35 PM

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