Emerging Markets Drive Forex Growth in India

A recent report by Thomas Cook India analyzed transaction data between April 2025 and March 2026, revealing that Tier-2 and Tier-3 cities in India accounted for over half of the country's foreign exchange demand. The report found that these emerging markets are driving growth in the forex market, with Tier-1 cities, including metros, making up only 47% of demand.

The data showed that leisure travel remained the largest driver of forex demand, accounting for 57%, followed by corporate travel at 27%, and student travel at 16%. Younger consumers also played a significant role in the market, with those aged 25-40 years making up 37% of users.

The report highlighted the growing importance of digital channels in foreign exchange purchases, with digital adoption increasing 25% year-over-year. The US dollar remained the biggest currency market, accounting for 49% of forex demand, followed by European currencies at 23%, and Asian currencies at 11%.