Tier-2, Tier-3 cities account for 53% of India's forex demand: Report
Tier-2 cities contributed 41%, while Tier-3 cities accounted for another 12%
India's foreign exchange demand is shifting from major cities to smaller ones, with Tier-2 and Tier-3 cities accounting for 53% of overall forex demand, according to Thomas Cook India's Forex Report 2026. Tier-1 cities contributed 47%, while Tier-2 cities accounted for 41% and Tier-3 cities contributed 12%. Leisure travel was the leading driver of forex demand at 57%, followed by corporate travel (27%) and student travel (16%).
Younger consumers, particularly those aged 25-40 (37%) and 41-60 (36%), played a significant role in the forex market, making up nearly three-fourths of forex usage. The United States was the biggest currency market, followed by European currencies (23%), Asian currencies (11%), the Middle East (9%), and Canada (3%). Digital adoption in forex purchases grew 25% year-on-year, with DIY platform usage increasing 50% over the last two years.
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- Tier-2, Tier-3 cities drive 53% of forex demand economictimes.indiatimes.com
