The 2% TCS cut in Budget 2026 will make foreign holidays more affordable—prompting Indians to explore both short-haul and long-haul international destinations.
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Moneycontrol05-02-2026, 13:41

Foreign Travel Cheaper: 2% TCS Cut Sparks Indian Interest in 10 Global Destinations

  • The Indian government reduced Tax Collected at Source (TCS) on foreign travel to a flat 2%, making overseas trips more affordable.
  • This TCS cut has significantly reduced upfront payment burdens, making international travel more accessible for middle-class families and young professionals.
  • Following the announcement, travel platforms reported a sharp increase in searches for international destinations from India.
  • The revised structure is reviving interest in both short-haul Asian destinations and long-haul favourites.
  • Top destinations Indians are now eyeing include Thailand, Vietnam, Malaysia, Sri Lanka, Dubai, Maldives, Switzerland, Tokyo (Japan), and Bali (Indonesia).

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