Should I carry cash or use cards?

Carry cash. While big hotels and western-style cafes take cards, 90% of your daily spending will be in cash (Rupees). Use ATMs attached to major banks to minimize fees.

How much should I tip?

Tipping isn't mandatory, but it is appreciated. Round up your rickshaw fare or leave 50-100 rupees at a restaurant if the service was good.

Budgeting for a Backpacking Trip in India

You need to budget between $30 and $45 USD per day to backpack comfortably in India. This covers decent hostels, three meals, local transport, and a few activities without feeling restricted.

Set your baseline daily spend. Allocate $15 for a clean hostel bed in major cities, $15 for three street-food or local-eatery meals, and $10 for local transport (rickshaws/metros) and small entry fees.
Account for regional price variance. Cities like Mumbai and Delhi sit on the higher end of the $45 daily range. Rural areas in states like Rajasthan or Bihar can drop your daily spend to $25 if you eat local vegetarian thalis.
Buffer for long-distance travel. Indian trains are cheap, but booking last-minute or opting for AC classes instead of Sleeper class increases your cost. Add an extra $5 per day to your total budget to account for these transit jumps.
Separate your 'experience' fund. Don't include big-ticket items like a Taj Mahal entry ($15) or a desert camel safari ($40) in your daily $45 budget. Set aside an extra $200 lump sum for these unique experiences.

Should I carry cash or use cards?: Carry cash. While big hotels and western-style cafes take cards, 90% of your daily spending will be in cash (Rupees). Use ATMs attached to major banks to minimize fees.
How much should I tip?: Tipping isn't mandatory, but it is appreciated. Round up your rickshaw fare or leave 50-100 rupees at a restaurant if the service was good.