Is India Still a Budget Destination in 2025?

Travelers keep asking whether India still offers a wallet‑friendly experience for backpackers and family vacationers alike. The answer isn’t a simple yes or no - it depends on where you go, when you travel, and how you plan each day. In 2025 the country’s price map has shifted a bit, but there are still plenty of pockets where a daily budget of $30‑$50 can cover food, sleep and transport.

How Much Does a Trip to India Cost Today?

Let’s break the numbers down by the three biggest expense buckets: accommodation, meals, and getting around.

• Accommodation: Hostels in major cities run $8‑$15 per night for a bunk in a shared dorm. Hostels are the most common budget option for solo travelers and groups. Mid‑range hotels cost $30‑$60, while boutique stays can exceed $100.
• Food: Street‑food stalls serve a plate of masala dosa for $2‑$3, a bowl of spicy ramen‑style noodles for $1.50, and a fresh coconut water for under $1. Street food offers the best calories‑for‑dollar ratio in the country. A three‑course meal at a mid‑level restaurant averages $7‑$12.
• Transport: Intercity trains range $5‑$25 depending on class and distance. Budget airlines such as IndiGo operate a dense network of domestic flights at $30‑$80 per leg. City buses and metro systems cost under $1 per ride.

Putting those figures together, a solo traveler can comfortably live on $35‑$45 per day in most regions, while families or those wanting a few comforts should budget $60‑$80.

What Has Changed Since 2020?

Several macro factors have nudged prices upward:

1. Inflation: The Indian rupee’s purchasing power fell about 12% from 2020 to 2025, according to the Reserve Bank’s inflation report.
2. Tourism recovery: Post‑pandemic visitor numbers are back to pre‑COVID levels, prompting hotels to raise rates during peak seasons.
3. Fuel costs: Higher diesel prices have increased bus and taxi fares by roughly 8%.

Despite those shifts, the country’s baseline remains low compared with neighboring Southeast Asian destinations. For example, Vietnam’s average daily budget sits around $45‑$60, while Thailand hovers near $55‑$70.

Where to Find the Best Value

Not every Indian city is created equal on the price‑scale. Below is a quick guide to the regions that still deliver big experiences for tiny budgets.

• North‑west: Jaipur offers heritage hotels and street markets at $10‑$20 per night. The pink city’s forts are free or charge a nominal entry fee.
• East Coast: Kolkata is famous for cheap kebabs, tram rides and colonial architecture. Meals stay under $3, and guesthouses cost $7‑$12.
• South: Kerala provides back‑water homestays for $15‑$25, plus affordable coconut‑based cuisine. The state’s public transport is reliable and cheap.
• Western coast: Goa still has beachside hostels at $12‑$18, especially outside the December‑January peak. Eating at local shacks keeps costs low.

Major metros like Delhi are more expensive, but you can still find budget lodging at $10‑$15 and delicious dal‑based meals for $2‑$3.

Average Daily Costs by City (2025 vs 2020)

Even with the uptick, the numbers stay comfortably under the $50‑day threshold for most travelers.

Tips to Stretch Your Rupee Further

Here are proven tricks that keep the budget tight without sacrificing fun:

• Travel off‑season: Prices drop 30‑40% in monsoon months (June‑September) for most hotels and flights.
• Use rail passes: The Indian Railways’ “Super Saver” pass offers 30% off on long‑distance tickets when booked two months ahead.
• Eat where locals eat: Stick to dhabas and chaats stalls; a thali costs $2‑$4 and fills you up.
• Book accommodation via local platforms: Sites like OYO and Airbnb’s “Instant Book” often have lower fees than global OTAs.
• Negotiate: In markets and for tuk‑tuk rides, a quick haggling session can shave $0.50‑$1 off the price.

Don’t forget to watch the Indian rupee exchange rates, which can swing 2‑3% in a week. Using a no‑fee card or a reputable currency app can save you extra bucks.

Is India Still Cheap for Different Types of Travelers?

Below is a quick match‑up of traveler profiles and where they can stay under budget.

• Backpackers: Hostels in Delhi, Jaipur, and Goa keep nightly costs under $15. Night buses and shared rides cut intercity travel to $5‑$10.
• Family vacationers: Choose homestays in Kerala or Karnataka; they offer private rooms with meals for $30‑$45 per night.
• Digital nomads: Co‑working spaces in Bangalore and Hyderabad charge $120‑$180 per month, while nearby apartments cost $250‑$400.
• Luxury seekers: Even five‑star resorts in Goa now have off‑season packages at $120‑$150 per night, still lower than many Western destinations.

The takeaway? Yes, India remains a cheap destination, but the definition of “cheap” now leans toward $30‑$50 per day for the typical solo traveler.