Visa demand rises in tandem with outbound travel growth

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.