India’s foreign exchange demand is increasingly moving beyond major metropolitan centres, with Tier-2 and Tier-3 cities together accounting for 53 per cent of overall forex demand, according to Thomas Cook India’s Forex Report 2026. The report, based on Thomas Cook India’s transaction data between April 2025 and March 2026 across leisure travel, education and corporate travel, showed that Tier-1 cities, including metros, accounted for 47 per cent of forex demand.
Tier-2 cities contributed 41 per cent, while Tier-3 cities accounted for another 12 per cent.”Emerging India is driving the next phase of forex growth, with Tier 2 and Tier 3 cities contributing over half of overall demand,” the report said.The trend points to a broadening of India’s outbound travel and foreign exchange market beyond the country’s traditional metropolitan centres.
Leisure travel remained the biggest driver of forex demand, accounting for 57 per cent, followed by corporate travel at 27 per cent and student travel at 16 per cent. The report said forex demand was increasingly diversified, with leisure travel leading the market alongside sustained demand from business travel and overseas education.
Younger consumers also formed a significant part of the forex market. Consumers aged 25-40 years accounted for the largest share at 37 per cent, closely followed by those aged 41-60 years at 36 per cent. Travellers aged over 60 years accounted for 21 per cent, while those between 18 and 24 years made up 6 per cent. “Millennials and Gen X together account for nearly three-fourths of forex usage,” the report said, adding that senior travellers continued to remain an important contributor to outbound forex demand.
The United States remained the biggest currency market, with the US dollar accounting for 49 per cent of forex demand. Europe, represented by the euro and British pound, accounted for 23 per cent, while Asian currencies including the Thai baht, Singapore dollar, Japanese yen, Vietnamese dong and Indonesian rupiah accounted for 11 per cent.
The Middle East, led by the UAE dirham and Saudi riyal, accounted for 9 per cent, while Australia and New Zealand currencies contributed 5 per cent. Canada accounted for the remaining 3 per cent. The report also highlighted increasing digital adoption in forex purchases. While branch-assisted purchases continued to dominate with a 75 per cent share, digital channels accounted for 25 per cent.
The report said digital forex adoption across its channels had grown 25 per cent year-on-year, while DIY platform usage had grown 50 per cent year-on-year over the last two years, indicating a gradual shift towards digital-first forex transactions among Indian travellers.
Published on August 15, 2026
