Visa hurdles cost Indians ₹662 crore: US, Schengen dreams hit hard
- In Reports
- 07:17 PM, Jan 17, 2025
- Myind Staff
"I submitted all the documents, yet my Schengen visa or US visa was rejected." This is a common grievance on social media when people are looking for experiences with visa rejection. In December 2024, many Indian travellers shared their struggles with visa rejections, especially for the UAE. Many people talked about the challenges they faced in getting visas for a destination that has always been known for welcoming tourists.
The UAE, which made up 24.8% of Indian travellers between January and October 2024, is still one of the most popular places for Indian tourists. However, last year, Dubai's emigration department introduced stricter rules for tourist visas, which led to more rejections. It's not limited to the UAE, though. In the post-pandemic period, the UK, Australia, New Zealand and Schengen area countries have seen a sharp increase in visitor visa rejection rates. Furthermore, it is unlikely that the situation will improve given India's 2025 move from 80th to 85th place in the world on the Henley Passport Index. The Henley Passport Index ranks passports worldwide based on how many countries their holders can visit without needing a visa. This ranking highlights how the strength of a passport can influence visa rejection rates.
In the past year, Indian travellers have collectively faced losses of around Rs 662 crore due to visa rejections from these destinations. For every 100 visa applications filed during the most recent 12-month period, the following rejection percentages were noted, based on data from each nation's migration and statistics portal:
New Zealand: 32.45%
Australia: 30%
UK: 17%
US: 16.32%
Schengen area: 15.7%
These figures reflect significant increases compared to pre-pandemic levels. New Zealand and Australia saw the steepest rises, with rejection rates up by 20 percentage points (pp) and 14 pp, respectively. The UK and Schengen countries experienced increases of 6 pp and 5 pp. Interestingly, the US bucked the trend, with a decline of 11 pp in its rejection rate. Rejections of visas frequently result in significant financial losses, especially because many application payments are non-refundable. According to estimates, Indian applicants lost the following in 2024:
Australia
Total visa applications lodged: 377,614
Visas granted: 261,857
Visas rejected: 115,757
Rejection rate: 30%
Monetary loss: Rs 93 crore
New Zealand
Total visa applications lodged: 103,911
Visas granted: 70,197
Visas rejected: 33,714
Rejection rate: 32.45%
Monetary loss: Rs 72 crore
UK
Indian nationals accounted for 25% of visitor visas granted (511,167). While there is no official data on how many were rejected, a report by Mint puts the rejection rate at 17% and a financial loss of Rs 116 crore.
USA
Total visa applications lodged:
Visas granted: 986259
Visas rejected: 160,958
Rejection rate: 16.32%
Monetary loss: Rs 257 crore
Schengen
Total visa applications lodged: 966,687
Visas granted: 811,290
Visas rejected: 151,752
Rejection rate: 15.7%
Monetary loss: Rs 124 crore
(Total money lost = number of visas rejected x visa fees)
Visa rejections can cause financial losses beyond just the application fees. Many countries require applicants to pre-book accommodations, travel insurance and flight tickets, which are often non-refundable. For example, last year, Mayank Sharma from Delhi lost ₹3.5 lakh on flight and hotel bookings after his Schengen visa was denied. Similarly, Keyur Shah and his friends faced losses when Slovenia rejected their visa applications, as their hotel bookings were non-refundable. The US plans to add one million more visa appointment slots in 2025, according to Secretary of State Antony Blinken.
Reasons for increased rejections
Several factors contribute to the rise in visa rejections. According to several immigration portals, some of the factors are:
Higher application volumes: Many visa processing systems remain strained as applications surpass pre-pandemic levels. Take the US for example:
As of January 17, the wait times for B1/B2 visitor visas in India are:
Hyderabad: 429 days
Kolkata: 436 days
Mumbai: 438 days
Delhi: 441 days
Chennai: 479 days
Stricter financial proof requirements: Applicants are now required to provide more robust evidence of financial stability to cover travel expenses.
Tighter immigration policies: Anti-immigration sentiment has led to stricter checks, with countries alleging misuse of tourist visas for work or extended stays.
Policy changes: Examples include the UAE’s requirement for visitors to have at least AED 5,000 in their bank accounts, a return ticket, and proof of accommodation. Similarly, Canada suspended its 10-year multiple-entry tourist visas in November 2024. Even popular tourist hubs like Bali have implemented stricter rules, including jail terms for those violating visa conditions. Additionally, countries such as the UK, EU and New Zealand raised tourist visa fees sharply in 2024.
From June 11, 2024, Schengen visa fees increased by 12%:
Adults: €90 (Rs 8,000)
Children (6-12 years): €45 (Rs 4,000)
Countries that fail to cooperate on repatriation may face fees as high as €135 to €180 (Rs 12,000 to Rs 16,000). New Zealand also implemented fee hikes for tourist visas from NZD 119 to NZD 188.
India's outbound tourism industry has made a strong comeback after the pandemic. From January to October 2024, around 25 million Indians travelled abroad, with holidays being the second most popular reason, as per the tourism ministry. This marks an 8.5% growth compared to the same period in 2023 and a 12% increase from 2019. The final numbers for 2024 are expected to break previous records. The growth is also fuelled by easier access to travel loans. A survey by Paisabazaar from January to June 2023 showed that 21% of people who took personal loans used them for travel.
Shift to visa-friendly destinations
While traditional destinations remain popular, many Indian travellers are now exploring visa-friendly countries with lower costs. Destinations such as Thailand, Vietnam, Sri Lanka, Malaysia, and the Philippines are gaining traction:
< Malaysia saw a 50% increase in Indian visitors.
< Thailand recorded a 31% rise.
< Vietnam and Sri Lanka experienced increases of 28% and 24%, respectively.
These countries often require less stringent documentation and benefit from weaker currencies, making them attractive alternatives.
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