India’s Union Budget 2026 has given a clear boost to outbound travel. Soon after the announcement, international destination searches from India jumped sharply, especially for places that offer strong value for money along with unique experiences.
The key reason is the reduction of Tax Collected at Source
on foreign travel to a flat 2 per cent, a move that has made overseas trips easier on the pocket.
Earlier, higher TCS rates often meant a bigger upfront payment, even before the holiday began. With the new rate, international travel is no longer seen as a heavy financial stretch, especially for middle class families and young professionals.
Rajesh Magow, Co-founder and Group CEO of MakeMyTrip welcomed the move saying, "The rationalisation of TCS on overseas tour packages is a welcome step that addresses upfront liquidity impact on Indian outbound travellers."
Ixigo's group CEO Aloke Bajpai also pointed out that this year’s budget has also taken steps to make international travel more accessible and affordable for Indian travellers with TCS rate cuts on overseas tour packages.
Search data shows a clear list of international cities that Indians are currently most curious about. Bangkok tops the chart, thanks to its mix of nightlife, shopping, street food, and affordable luxury.
Bangkok. Credits/Pixabay
Thailand has long been a favourite for Indian travellers, and the lower TCS only strengthens its appeal.
Tokyo, Japan. Credits/Pixabay
Tokyo is another destination seeing a surge in interest. From cherry blossoms and anime culture to cutting edge technology and traditional temples, the Japanese capital offers a rich mix of old and new. It stood as the most visited destination for Indians in 2025.
Bali. Credits/Pixabay
Bali continues to attract strong search volumes, especially among honeymooners and remote workers.
Known for its beaches, wellness retreats, and budget friendly villas, Bali offers high value experiences at relatively low costs. The TCS cut further improves its affordability.
Dubai, UAE. Credits/Pixabay
Dubai remains a consistent favourite. Its proximity to India, visa ease, and wide range of attractions from shopping festivals to theme parks make it ideal for short international breaks.
With reduced upfront costs, more families are now planning Dubai trips around school holidays and long weekends.
Interestingly, long haul destinations are also gaining traction. Queenstown in New Zealand is drawing adventure lovers looking for scenic landscapes and outdoor activities.
Lisbon. Credits/Pixabay
Lisbon is emerging as a popular European gateway, offering history, coastal views, and comparatively lower costs than many Western European cities.
Rome, Italy. Credits/Pixabay
Rome, with its timeless charm, food culture, and iconic landmarks, continues to attract Indian travellers eager for classic European experiences.
Travel experts say this trend reflects a shift in mindset. Indian travellers are no longer limiting themselves to nearby countries.
With financial barriers easing, they are more open to exploring diverse cultures and destinations across continents.
As airlines, hotels, and tour operators roll out competitive deals to match rising demand, outbound travel from India is expected to see strong growth in 2026.
