Thomas Cook India has launched its India Forex Report 2026, detailing evolving Indian consumer habits in purchasing, carrying, and spending foreign exchange. The report highlights the increasing diversification of forex demand, the rise of digital transactions among younger consumers, and a growing preference for destination-specific currencies beyond the US Dollar. Key observations include the significant contribution of Tier 2 and Tier 3 cities and the expanding horizons of India’s study abroad market.
India Forex Report 2026 Released
Thomas Cook (India) Limited has released its comprehensive India Forex Report 2026, offering insights into the evolving foreign exchange landscape shaped by Indian consumers’ travel and spending habits. The report, based on transaction data from April 2025 to March 2026, underscores a notable shift towards a more diversified Indian forex market.
Key Observations and Trends
Diversifying Forex Demand
The report indicates that leisure travel remains the primary driver of forex demand, accounting for 57%, followed by corporate travel (27%) and overseas education (16%). A significant trend is the expansion of forex demand geographically, with Tier 1 cities contributing 47%, while Tier 2 cities represent 41% and Tier 3 cities 12%. Combined, Tier 2 and Tier 3 cities account for 53% of the demand, signaling growth from emerging Indian markets.
Digital Adoption and Consumer Demographics
Millennials and Gen X constitute the largest user base for forex services, making up nearly three-fourths of the demand. However, younger travelers aged 18-24 years are emerging as the fastest adopters of digital forex channels, showing a clear trend towards digital-first transactions. While branch-assisted transactions still account for 75%, digital channels are rapidly gaining traction, with younger users showing increasing comfort with digital platforms for significant transactions.
Shift Towards Destination-Specific Currencies
The US Dollar continues to dominate forex demand with a 49% share. However, there’s a marked increase in the purchase of destination-specific currencies. Europe-linked currencies now account for 23% of demand, followed by Asia (11%), the Middle East (9%), and Australia & New Zealand (5%).
Study Abroad Market Expansion
India’s study abroad market is also diversifying, with Europe becoming a leading destination for Indian students (38%), followed by the United States (34%). This trend reflects a growing preference for markets offering affordability and stronger post-study opportunities. University fees continue to be the largest component of education-linked forex outflows, at 81%.
Corporate Travel Dynamics
In corporate travel, IT/ITeS sectors lead forex consumption (45%), with Europe being the top destination (45%). Business travelers exhibit a strong preference for card-based forex solutions, with forex cards accounting for 84% of usage. Multi-currency cards are particularly popular, making up 76% of card usage.
Industry Leader Insights
Mr. Deepesh Varma, Chief Business Officer – Foreign Exchange at Thomas Cook India, highlighted the report’s insights into evolving consumer behavior, the rise of digital journeys, and the growing importance of Tier 2 and Tier 3 markets. He emphasized the company’s focus on innovation and omnichannel access to meet these changing dynamics.
Sridhar Keppurengan, Head of Cross-Border Payments, India and South Asia at Visa, noted the increasing digitization and diversification of Indian outbound travel, with a preference for secure, cash-light solutions and greater control over spending.
Source: BSE
