India's Tier-2, Tier-3 Cities Generate 53% of Forex Demand as Leisure Travel Leads
Updated
Updated · The Economic Times · Aug 17
India's Tier-2, Tier-3 Cities Generate 53% of Forex Demand as Leisure Travel Leads
3 articles · Updated · The Economic Times · Aug 17
Summary
Tier-2 and tier-3 cities now account for 53% of India’s total forex demand, overtaking metros’ 47% in a sign that outbound spending is spreading beyond the biggest urban centers.
Leisure travel drives 57% of that demand, ahead of corporate travel at 27% and student travel at 16%, indicating foreign currency purchases are increasingly tied to discretionary overseas trips.
Tier-2 cities contribute 41% and tier-3 cities 12%; travelers aged 25-40 make up 37% of forex demand and those 41-60 another 36%, concentrating usage in prime earning years.
The shift aligns with broader changes in small-town India, where retail spending growth, premium home purchases and participation in mutual funds and equities have all strengthened outside metros.
Digital forex adoption rose 25% year on year and DIY platform usage jumped 50% in two years, suggesting smaller-city consumers are becoming more comfortable with tech-led global spending.