Best Budget Friendly Backpacking Destinations in India

1. Kasol, Himachal Pradesh

The Mini Israel of India: A Paradise for Hippie Backpackers

Kasol, tucked in the Parvati Valley, is a favorite among budget travelers looking for a peaceful escape in the Himalayas.

Why It’s Budget-Friendly:

• Cheap homestays and hostels starting at Rs.300

• Affordable cafes and Israeli food joints

• Local buses and shared cabs to get around

Top Things to Do:

• Trek to Kheerganga

• Chill by the Parvati River

• Visit Tosh and Malana villages

Pro Tip: Carry cash, as ATMs are limited. Avoid peak winter unless you're prepared for snow.

2. McLeod Ganj, Himachal Pradesh

The Tibetan Escape with a Spiritual Touch

This hill town is home to the Dalai Lama and offers a blend of Tibetan culture, peaceful monasteries, and stunning mountain views.

Why It’s Budget-Friendly:

• Dorm beds from Rs.200

• Free meditation sessions in monasteries

• Local buses connect Dharamshala to McLeod Ganj easily

Top Things to Do:

• Trek to Triund

• Visit Tsuglagkhang Monastery

• Try Tibetan momos and thukpa

Backpacker Tip: Off-season visits (March-April or Oct-Nov) offer cheaper stays and fewer crowds.

3. Varkala, Kerala

Cliffside Beaches and Yoga on a Budget

Varkala is Kerala's hidden gem. Less crowded than Goa but equally stunning, it offers backpackers peace, waves, and budget bliss.

Why It’s Budget-Friendly:

• Beach shacks and hostels from Rs.200

• Fresh seafood meals under Rs.100

• Trains to nearby cities like Trivandrum and Kochi

Top Things to Do:

• Relax at Varkala Cliff Beach

• Attend yoga classes

• Explore Janardanaswamy Temple

Travel Tip: Rent a scooter to explore nearby beaches like Kappil or Edava.

4. Rishikesh, Uttarakhand

Backpack, Meditate, and River Raft in One Place

Known as the "Yoga Capital of the World," Rishikesh offers a mix of spirituality and adventure for cheap.

Why It’s Budget-Friendly:

• Ashrams offering free/low-cost stays

• Budget hostels from Rs.250

• Street food and cheap cafes by the Ganga

Top Things to Do:

• Try river rafting and bungee jumping

• Attend Ganga Aarti at Triveni Ghat

• Walk across Laxman Jhula

Backpacker Tip: Most cafes have Wi-Fi, making it perfect for digital nomads on a budget.

5. Pushkar, Rajasthan

Camel Fairs, Hippie Cafes, and Holy Ghats

Pushkar is small but packed with culture, spirituality, and backpacker-friendly vibes. Its sacred lake and colorful streets attract free-spirited travelers.

Why It’s Budget-Friendly:

• Dorms starting at Rs.200

• Local Rajasthani meals for Rs.50-70

• Easy access from Ajmer by bus or rickshaw

Top Things to Do:

• Visit Brahma Temple

• Shop in the Pushkar market

• Enjoy sunset by the lake

Tip: Visit during the Pushkar Camel Fair (Nov) for a unique budget experience.

6. Hampi, Karnataka

Ruins, Rocks, and a Backpacker’s Vibe

Hampi, a UNESCO World Heritage Site, is an open museum of ancient temples and landscapes. It’s cheap, magical, and unforgettable.

Why It’s Budget-Friendly:

• Guesthouses and hostels under Rs.500

• Bicycle/scooter rentals for easy exploring

• Inexpensive South Indian thalis everywhere

Top Things to Do:

• Visit Virupaksha Temple

• Cliff-jump in the Sanapur Lake

• Watch sunrise from Matanga Hill

Backpacker Tip: Stay on the "hippie island" side for chill vibes and lower prices.

7. Gokarna, Karnataka

Goa’s Quieter, Cheaper Cousin

If Goa feels too crowded or expensive, Gokarna is your escape. This coastal town has serene beaches, temples, and plenty of budget options.

Why It’s Budget-Friendly:

• Beachside huts starting from Rs.200

• Budget food and local seafood

• Trains and buses connect well to major cities

Top Things to Do:

• Beach trek from Om to Paradise Beach

• Visit Mahabaleshwar Temple

• Watch sunset at Kudle Beach

Budget Tip: Skip autos, walk everywhere. Most beaches are connected through trails.

8. Auroville & Pondicherry

French Vibes, Spiritual Living, and Budget Bliss

A mix of bohemian lifestyle and spiritual calmness, Pondicherry and Auroville attract peaceful backpackers.

Why It’s Budget-Friendly:

• Auroville has volunteer stays and low-cost guesthouses

• Rent a cycle or scooter for cheap exploring

• Street food, bakeries, and South Indian meals on a budget

Top Things to Do:

• Visit Auroville’s Matrimandir

• Chill at Serenity Beach

• Explore White Town for architecture and cafes

Tip: Book stays early in Auroville as places fill up fast during tourist season.

9. Varanasi, Uttar Pradesh

India’s Oldest City, Full of Soul and Backpacker Spirit

For a deeply cultural and spiritual experience, Varanasi is unbeatable. Despite being intense, it's also one of the most cheap travel destinations in India for backpackers.

Why It’s Budget-Friendly:

• Guesthouses and dharamshalas under Rs.300

• Eat like a local for under Rs.100 a day

• Rickshaws and walking are best to explore the ghats

Top Things to Do:

• Watch the Ganga Aarti

• Take a sunrise boat ride

• Visit Sarnath

Budget Tip: Use local eateries for delicious kachoris, jalebis, and thalis.

10. Spiti Valley, Himachal Pradesh

High-Altitude Adventure for True Backpackers

If you’re an adventurous soul and ready to rough it a bit, Spiti is heaven. This cold desert valley offers raw landscapes, old monasteries, and genuine Tibetan culture.

Why It’s Budget-Friendly:

• Homestays under Rs.500 with meals

• Local buses connect most villages

• Nature treks and monastery visits are free

Top Things to Do:

• Visit Key Monastery

• Camp near Chandratal Lake

• Ride a bike or hitchhike between villages

Tip: Travel between June and September. Carry cash, as ATMs are rare.

Bonus Tips: How to Backpack India on a Budget

1. Use Trains and State Buses: They’re cheap and reliable.

2. Eat Local: Dhabas and street food offer delicious meals at low prices.

3. Stay in Hostels or Homestays: They’re cheaper and often come with travel tips.

4. Travel Off-Season: Prices drop significantly.

5. Use Apps: RedBus, Rome2Rio, and Hostelworld help find cheap stays and transport.