Backpacking Reimagined: How Indian Youth Are Redefining Budget Travel

Rich in heritage, culture, and diversity, India is emerging as a global hotspot for tourism and has become a key driver for economic growth. From delving in local culture to exploring popular religious destinations, beaches to mountains, the industry is booming and shows immense potential. Once considered a luxury, traveling has become a source of adventure and a way to gather unique experiences. With more than 50% of the population below 25 and more than 65% below 35, the travel scene in India is in its golden age.

Replacing luxury for authenticity, international for local, Indian tourism scene is undergoing a change in trend, led by young adventurers. Generation Z (Gen Z), the youngest generation of working Indians are at the forefront of this change. Most consumers today are experience-driven spenders—they're more likely to cut back on flights or dining out than sacrifice spending on meaningful experiences. This new wave of backpackers is redefining what budget travel looks like in India, blending affordability with experience and spontaneity with sustainability.

Market overview

India is poised to become a Rs. 2,56,95,000 crore (US$ 3 trillion) tourism economy by 2047, driven by strong domestic and international travel trends. In 2022, the country welcomed 14.3 million international tourists, generating Rs. 1,50,744 crore (US$ 17.6 billion) in revenue. By 2023, the tourism and hospitality sector contributed Rs. 19,78,515 crore (US$ 231 billion) to the nation's GDP, highlighting its growing economic significance.

The momentum is expected to continue, with India’s travel industry projected to grow at an annual rate of 12–15% over the next five years starting 2025. In 2023 alone, India recorded over 250 crore domestic tourist visits and 1.8 crore international arrivals. The sector also played a crucial role in employment generation, supporting 7.6 crore jobs in FY23.

Looking ahead, optimistic forecasts for 2024–25 indicate that tourism’s total contribution to GDP could reach 7.6% by 2034, reinforcing its position as a key pillar of India’s economic transformation.

Maha Kumbh Mela 2025

Spiritual travel is not just for the older populus and is increasingly being embraced by the youth of our country. Maha Kumbh Mela, a spiritual event carried out once every 144 years was carried out this year in January and February. It was a massive economic catalyst bringing over 660 million attendees from 76 countries and generated over Rs. 3,08,340 crore (US$ 36 billion) in transactions.

The festival’s cultural richness and it being a once in a generation event, Gen Zs are rushed to witness and document it. As per Ixigo’s chief executive officer (CEO), Mr. Aloke Bajpai, more people in the 20-25 age group went to the Maha Kumbh than in the 46 and above age group. On a quest for self-discovery and seeking new experiences, Maha Kumbh 2025 was much more than any other event for the youth.

With a record 660 million visitors, Maha Kumbh 2025 cemented its place as the world's biggest religious festival, far surpassing the Haj pilgrimage (2.5 million), Rio Carnival (7 million), and Oktoberfest (7.2 million).

A shift in the way we travel

Founder and Chairperson of Veena World, Mr. Sudhir Patil, in an EY report, highlights a transformative shift in Indian travel preferences—where experiences are now valued more than material possessions. For a growing number of Indians, travel has become an integral part of their lifestyle, a means of self-discovery, and a source of emotional fulfilment rather than just leisure.

The rise of social media has played a pivotal role in this evolution. Platforms like Instagram and YouTube have turned everyday travellers into storytellers, popularizing offbeat locations, hidden gems, and smart budget travel hacks. This has democratized travel and converted lesser-known places into trending weekend getaways.

While religious tourism continues to dominate, Indian travellers are increasingly embracing diverse and immersive experiences. There is a marked rise in interest in sports tourism (like attending international matches), entertainment-based travel (such as concerts and festivals), luxury cruises, holistic wellness retreats, and adrenaline-fueled adventure tourism. These evolving preferences are not only reshaping the domestic tourism landscape but also driving sustained growth across various sub-segments of the sector, paving the way for a more experiential and diversified travel economy.

Key trends powering the backpacking boom

• Digital platforms simplify affordable travel planning

  From budget flight trackers to digital hotel bookings, apps and websites have made planning easier and cheaper. Youth use platforms like Zostel, Hosteller, booking.com, and MakeMyTrip to find affordable stays and hotels. Communities like Reddit and Instagram also act as real time guides.

• Remote work culture

  The remote work culture also played an important role in the growth. It allowed young professionals to live and work from remote locations across India without being restricted to the one single place.

• Enhanced safety

  Better connectivity and safer accommodation encourage many solo and first-time travelers. Many young women are now choosing to backpack solo due to the net of safety and a sense of security even in remote areas.

• Dynamic itinerary and free tools

  Free itinerary planners and budget calculators are being used to plan trips on the fly. It not only saves time but also helps experience new things outside the ordinary.

• Sustainable and conscious travel

  Travelers are also increasingly opting for sustainable and conscious travel which does not affect the local flora and fauna. Homestays, volunteering programs, and remote locations over run of the mill tourist spots are becoming the norm among the youth. This conscious choice supports the local economy and reduces environmental impact, a trend that aligns with backpacking culture.

• Personal growth and experience over materialism

  In today’s time travel is seen as personal growth and a way to break routine, even on a tight budget. The younger generations are starting to value experience over material goods breaking out of the archaic cycle.

Government support and infrastructure development

Recognizing the potential of the tourism industry, the Union Budget 2025-26 has allocated Rs. 2,541 crore (US$ 296.7 million) towards improving infrastructure, skill development, and travel facilities. A major initiative includes developing 50 top tourist destinations in partnership with Indian states, ensuring world class facilities and connectivity.

The Ministry of tourism has launched various schemes and initiatives to support and develop various tourist destinations in the country:

• Swadesh Darshan 2.0: Swadesh darshan 2.0 a revamp version of Swadesh darshan aims to promote sustainable and responsible tourism and help India realize its full potential as a tourism hub.
• Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Driver (PRASAD): PRASAD scheme is an initiative by the government of India to improve and develop its pilgrimage sites by enhancing infrastructure, amenities, and services at these locations.
• Dekho Apna Desh

  The Ministry of tourism has launched Dekho Apna Desh to promote domestic tourism in the country through Webinars, Quiz, Promotional events, social media, etc.

• Ude Desh ka Aam Nagrik (UDAN)

  UDAN scheme was launched to make air travel affordable and accessible and improve connectivity to remote places.

The government of India has also planned to increase the number of operational airports to 220 by 2025 and expand the digital infrastructure to make remote destinations easier to reach and safer to explore.

The road ahead

India is perfectly positioned to nurture its youth led travel revolution. With its vast cultural diversity, growing digital adoption, and government push towards domestic tourism, the future of backpackers looks bright.

Smart investment in infrastructure, projects designed around the needs of local communities, and sustainability first policies are going to be essential in the coming years. Without sticking to global trends and customs, India can craft its own identity and pave the way for more connected, curious, and conscious generation of travelers.

With Indian subcontinent’s growing middle class and optimistic growth in the domestic travel, it could soon overtake Japan and Mexico to become fourth largest domestic travel market by 2030. This new wave of travel is not just about seeing more places; it is about connecting deeper with India, supporting local economies, and building a more sustainable tourism model. No longer limited to limited options or itineraries, today’s budget travelers seek value, combining affordability with culture, sustainability, and adventure.