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Smaller cities drive 53% of India’s forex demand: Report
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…
The Story in Brief
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.
The Indian Opinion
The chest-thumping about 'emerging India' leans a little too hard on a travel company's transaction data. Of course leisure and education spending is rising faster in smaller towns, that is where the aspirational middle class has grown the most. The real test is whether this demand is sustainable. Watch outbound travel numbers in the next quarter: if they stall, the narrative around a new consumer class will need a hard reset.
Sources (3): thehindubusinessline.com, economictimes.indiatimes.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
