Disha Shah Ghosh - Mumbai At a time when outbound travel is seeing a surge a fact well supplemented by the growth in visas, Yummi Talwar, COO – South Asia, VFS Global spoke to Disha Shah Ghosh about this trend, and the segments that are driving traffic abroad.
Q. What is your overview of the outbound travel market considering your half yearly performance of 2024?
In recent years, the Indian outbound market has experienced remarkable growth, and its upward trajectory shows no signs of slowing down. According to a joint study by FICCI and Nangia NXT, this market is poised to grow at a Compound Annual Growth Rate (CAGR) of 11.4%, reaching a staggering USD 55.39 billion by 2034. This reflects not only the growing affluence of Indian travellers, but also their increasing aspiration for global experiences.
A significant driver of this growth is the rising number of Indian students seeking educational opportunities abroad. The Indian Student Mobility Report 2023 reveals that 1,090,000 students travelled overseas in 2019. By 2022, this number had surged to approximately 1,320,000, and projections indicate that by 2025, around 2 million Indian students will be pursuing higher education in foreign institutions.
Mirroring this trend, VFS Global saw its application volumes in the first half of this year exceed pre-pandemic levels by 2%, with an 11% growth in the same period in 2023. It highlights VFS Global’s role in supporting India’s growing global mobility.
Q. What are the factors driving the growth in visa applications from India?
The demand for overseas travel from India has surged, driven by leisure, business, Visiting Friends and Relatives (VFR), employment, and student travel. Rising disposable income and increased spending power are key factors, with Indians ranking among the top spenders in many destinations.
Student travel, a rapidly growing segment, is outpacing other categories. The expanding Indian diaspora is also contributing to the growth, particularly in the VFR segment. Looking ahead, this trend is expected to continue well into 2025, indicating sustained growth in India’s outbound travel market. These are key reasons that are driving the growth of visa applications from India.
As a market leader and trusted partner to 68 governments, VFS Global’s unique value proposition has enabled governments to focus solely on the critical visa decision-making process and helped significantly in driving cross border mobility benefiting visa applicants worldwide.
Q. Do you see Indians opting for visa free or visa on arrival destinations amid delay in obtaining visas?
The choice of a travel destination is influenced by several factors beyond the visa process, such as the destination’s appeal and whether the traveller has visited before. With the Indian outbound travel market growing at a promising CAGR of 11.4%, destinations are actively working to attract these travellers, offering a wide range of expanding travel opportunities.
For a smooth visa application process, we recommend applicants review the checklist available on our website before applying. As a trusted partner to governments, VFS Global handles the front-end administrative tasks, ensuring a reliable and efficient process. However, it’s important to note that we play no role in visa decisions, which are solely made by the respective embassies or consulates.
Q. How are you engaging with the travel trade in India?
In India, travel agents are critical partners in the travel ecosystem, playing a vital role in guiding clients through the visa application process. We regularly communicate with them about any updates or new requirements mandated by the 52 client governments we serve in India.
We deeply value our collaboration with major travel associations like TAAI, TAFI, and ETAA. We advise them to avoid fraudulent entities that charge for scheduling appointments, which are freely available on our website. We also encourage agents to advise their clients to apply for visas well in advance, considering the processing times of different governments.
At the local level, we engage with agents to address region-specific issues and offer solutions within our services. We consistently emphasise that our role is limited to handling the front end of the visa process, a message well understood by our partners.
