India on a budget: Managing your money and costs

Table of Contents

India, is a popular destination for travellers worldwide. One of the appealing aspects of travelling in India is its affordability, but to make the most of your trip, it’s essential to manage your money wisely. This guide will help you understand the costs involved and provide tips on how to budget your money effectively while travelling around India on a budget.

Indian currency

The Indian currency, known as the Indian Rupee (INR), is the official currency of India. Symbolized by ₹, the rupee is subdivided into 100 paise. Banknotes are available in denominations of ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2000. Coins come in denominations of ₹1, ₹2, ₹5, ₹10, and occasionally smaller paise denominations.

Understanding the costs in India

Understanding the costs of travelling in India involves assessing expenses related to accommodation, food, transportation, and activities to create a realistic budget and make informed financial decisions.

Payment methods

In India, cash remains widely used, especially for small transactions and in rural areas. However, digital payments are increasingly popular, driven by the widespread adoption of smartphones and the government’s push for a cashless economy.

Mobile wallets like Paytm, PhonePe, and Google Pay enable seamless transactions through QR codes and UPI (Unified Payments Interface), allowing instant bank transfers and bill payments. Credit and debit cards are also commonly accepted in urban areas and larger establishments.

Accommodation

India offers a wide range of accommodation options to fit various budgets:

• Budget hotels and hostels: ₹500 – ₹1,500 per night. Common in urban areas and popular tourist destinations.
• Mid-range hotels: ₹2,000 – ₹5,000 per night. Offers more comfort and amenities.
• Luxury hotels and resorts: ₹6,000 and above per night. Found in metropolitan cities and high-end tourist spots.

Food and Drink

India is a paradise for food lovers, with diverse and affordable culinary options:

• Street food: ₹20 – ₹100 per item. Popular in cities and towns.
• Local restaurants (Dhabas): ₹100 – ₹300 per meal. Serves local and regional cuisines.
• Mid-range restaurants: ₹400 – ₹1,000 per meal. Offers a mix of local and international cuisines.
• High-end restaurants: ₹1,500 and above per meal. Located in major cities and tourist hotspots.

Transportation

Getting around India can be both economical and convenient:

• Local buses and auto rickshaws: ₹10 – ₹50 for short distances.
• Taxis and ride-hailing services (Ola, Uber): ₹100 – ₹500 depending on distance.
• Trains: ₹200 – ₹2,500 depending on class and distance.
• Domestic flights: ₹2,500 – ₹10,000 depending on the route and booking time.

Sightseeing and Activities

Costs for sightseeing can vary:

• Monuments and museums: ₹50 – ₹600 for entry fees.
• Guided tours: ₹1,000 – ₹5,000 depending on the tour length and inclusions.
• Adventure activities: ₹1,500 – ₹5,000 depending on the activity.

Sample daily budget for India

Here’s an example of a daily budget for a mid-range traveller:

• Accommodation: ₹2,000
• Food: ₹1,000
• Transport: ₹500
• Sightseeing/Activities: ₹1,000
• Miscellaneous (souvenirs, tips): ₹500
• Total daily budget: ₹5,000 per day

Tips for travelling around India on a budget

• Plan your budget: Estimate your daily expenses for accommodation, food, transportation, and activities and allocate extra funds for emergencies and spontaneous activities.
• Use local transportation: Opt for buses, trains, and metro services instead of taxis to save money. Consider buying travel passes for metro and local trains if staying in one city for a longer period.
• Eat like a local: Enjoy street food and local eateries for authentic and affordable meals. Avoid touristy restaurants which often charge higher prices.
• Bargain smartly: Negotiation is common in markets and with rickshaw drivers. Start with a lower offer and find a middle ground. Always agree on a fare before starting a ride in an auto-rickshaw.
• Be aware of hidden costs: Factor in taxes and service charges which can add up, especially in mid-range and luxury accommodations. Be mindful of additional charges for guides, camera fees at monuments, and tips for services.
• Travel off-season: Visit popular destinations during the off-season to take advantage of lower prices and fewer crowds. Research weather patterns and plan accordingly to ensure a comfortable trip.

Using ATMs in India

Using ATMs in India is generally straightforward, but there are a few key points to keep in mind to ensure a smooth experience. ATMs are widely available in cities and towns, especially in commercial areas and near popular tourist destinations. It’s advisable to use ATMs located in well-lit, secure locations like bank branches or shopping centers.

Be aware that some ATMs may have withdrawal limits, so it’s wise to plan accordingly and withdraw larger sums if possible to avoid multiple transactions and extra fees. Most ATMs accept international cards, but it’s a good idea to notify your bank of your travel plans to avoid any issues with your card.

Additionally, be cautious about ATM skimming devices and cover your PIN while entering it. Keeping a mix of cash and cards can be helpful, as cash is essential in smaller towns and for certain transactions.

Using credit cards in India

Using credit cards in India is generally convenient and widely accepted, particularly in major cities, hotels, restaurants, and retail stores. However, it’s essential to be aware that smaller establishments, local markets, and rural areas may not accept cards, so carrying some cash is advisable.

Most credit cards are accepted, but it’s a good idea to inform your bank of your travel plans to avoid any potential issues with fraud alerts or transaction declines. Be cautious with your card information, especially in less secure locations, and monitor your statements regularly for any unauthorised charges.

Additionally, check with your card issuer about foreign transaction fees and currency conversion rates, as these can impact your overall expenses.

Tipping in India

Tipping in India is customary but varies depending on the service and setting. In restaurants, a tip of 5% to 10% of the bill is appreciated, though some establishments may include a service charge, so check your bill before tipping. For taxi drivers and auto rickshaw operators, rounding up the fare or adding a small amount is customary, though tipping is not mandatory. In hotels, tipping housekeeping staff, bellboys, and concierges is a good practice, typically around ₹50 to ₹100 per service, depending on the level of service and the hotel’s class.

While tipping is appreciated across various service sectors, it’s important to gauge the local norms and context to ensure your gratuity is appropriate and respectful.

Conclusion

Travelling around India on a budget can be an enriching experience without breaking the bank. By understanding the costs and implementing smart budgeting strategies, you can enjoy the diverse experiences India has to offer while staying within your financial means.