Now Reading: Tier-2, Tier-3 cities drive 53% of India’s forex demand
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Tier-2, Tier-3 cities drive 53% of India’s forex demand
Tier-2 and Tier-3 cities now account for 53 per cent of India's foreign exchange demand, according to Thomas Cook India's Forex Report 2026. The report, based on transaction data from April 2025…
The Story in Brief
Tier-2 and Tier-3 cities now account for 53 per cent of India's foreign exchange demand, according to Thomas Cook India's Forex Report 2026. The report, based on transaction data from April 2025 to March 2026, said Tier-2 cities contributed 41 per cent and Tier-3 cities 12 per cent, while Tier-1 cities, including metros, made up the remaining 47 per cent.
Leisure travel was the biggest driver at 57 per cent, followed by corporate travel at 27 per cent and student travel at 16 per cent. The US dollar dominated with 49 per cent of demand. Consumers aged 25-40 led usage at 37 per cent.The report also noted digital forex purchases grew 25 per cent year-on-year, though branch-assisted transactions still held a 75 per cent share.
The Indian Opinion
The usual narrative is that India's travel boom is a metro phenomenon, but this data shows smaller cities are already the engine. The real story is the digital shift: DIY platform usage up 50 per cent while branches still take three-fourths of transactions. Watch whether digital share crosses 30 per cent in the next report, or whether trust and service keep travellers walking into branches. That number will tell us if the forex market is truly modernising or just growing bigger.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
