Meera Nanda in her book " The God Market " says that religiosity is increasing among India's youth. Excerpts from one of her articles :
""According to the 2007 State of the Nation survey conducted by the Centre for the Study of Developing Societies among Indians, the level of religiosity has gone up considerably in the past five years. A mere five per cent of respondents said that their religious belief had declined, while 30 per cent said they had become more religious. The same poll found that education and exposure to modern urban life seem to make Indians more, not less, religious: "Urban educated Indians are more religious than their rural and illiterate counterparts [...] religiosity has increased more in small towns and cities than in villages ""
""Another measurable indicator of rising religiosity is the tremendous rise in pilgrimages or religious tourism. According to a recent study by the National Council for Applied Economic Research, religious trips account for more than 50 per cent of all package tours, much higher than leisure tour packages at 28 per cent.""

But in my humble opinion, Religiosity is actually decreasing among today's youth. The old religious traditions are fading, the old norms of society based upon religion are giving way to more modern norms. For example, it has been my observation that inter-caste marriages are becoming more common ( though still a tiny minority ) , reflecting the fading importance of religious diktats among the youth. Moreover, people are becoming more flexible with their diets, shedding the old hindu taboos of compulsory vegetarianism. Many orthodox hindus in north india include eggs in their diet now, if not meat.

True, as revealed by the survey quoted by Meera Nanda, religious tours are increasing in popularity. But the rise in their popularity can also be explained by the general increase in prosperity and income levels.

It has been my observation that in Indian society, religion is something of a " fashion", with people performing religious rituals to conform to the social trend. Such tendencies, as per my observation, tend to be more pronounced among females, who , in general, are under more social pressure to conform to the norms of society, including religious norms.

it is my belief and hope, that with increasing economic growth and hence prosperity and better educational facilities, and more and better vocational opportunities, the mindset of Indians would become more flexible , open to new ideas. Better education and better jobs would make people more broad-minded and make them realise that there's much more in this world than gods and rituals. Whats more, globalization , both economic and cultural , would make the youth aware of global developments, and make them realize that their religious customs are by no means universal , and of course, make them aware of the fact that religion is coming under severe crticism in the west.

Economic growth is bringing better job opportunities , and many of these job opportunities are in a place far away from a person's hometown. For example, a person from UP going to Bangalore for a plum job in IT sector. ( Earlier, most people preferred to work in or near their home state/town). This would expose the youth to a new culture, and since the gods and rituals are quite different in Bangalore than in UP, this would make the person aware of the fact that his religiuos customs are not universal, and he is likely to realise that religious customs are merely arbitrary creations of human imagination, hence they differ from region to region. The person would now no longer attach a great importance to his religious customs, knowing that they are arbitrary.

In any case, the fast pace of life would leave little time for people to devote to religious customs and rituals. Whats more, since more and more women are taking up jobs, they would have little time for relgious worship and rituals , compared to their mothers and grandmothers. Also, many of the old superstitions are highly absurd and often impractical to follow : for example, its a taboo to get a haircut on thursdays, and buy iron/steel products on saturdays-- such absurd, impractical taboos would be rejected by well-educated youth.

Greater economic prosperity would make people quite geographically mobile , and as a result, people of different cultures and religions would meet more often. This would dilute the importance of religious customs in the people's minds, since they would realise that the other person performs different religious customs and rituals, yet is doing quite well. Ultimately, this would reduce the importance of religious customs in everyone's mind.