# Smaller cities drive 53% of India’s forex demand: Report

2026-08-15T15:58:00+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 3 independent outlets

Tier-2 and Tier-3 cities now account for 53% of India's foreign exchange demand, according to Thomas Cook India's Forex Report 2026. Tier-2 cities contributed 41% and Tier-3 cities 12%, while metros and other Tier-1 cities accounted for 47%. Leisure travel drove 57% of forex demand, followed by corporate travel at 27% and student travel at 16%. The US dollar was the most sought-after currency, making up 49% of demand, followed by European currencies at 23%. The 25-40 age group led forex usage at 37%, closely followed by those aged 41-60 at 36%. Digital forex purchases grew 25% year-on-year, and DIY platform usage jumped 50%, but branch-assisted purchases still held a 75% share.

## Coverage

- thehindubusinessline.com <https://www.thehindubusinessline.com/markets/forex/tier-2-tier-3-cities-account-for-53-of-indias-forex-demand-report/article71349965.ece>
- economictimes.indiatimes.com <https://economictimes.indiatimes.com/news/india/tier-2-tier-3-cities-account-for-53-of-indias-forex-demand-report/articleshow/133264446.cms>
- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/business/india-business/indias-forex-demand-shifts-beyond-metros-as-tier-2-tier-3-cities-take-53-share/articleshow/133265257.cms>

Tags: foreign exchange, Leisure travel, Thomas Cook India, tier-2 cities, US dollar
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