Indian Forex Market Set To Exceed $21 Billion As Rising Travel Demand Fuels Industry Growth

Prithvi Exchange, headquartered in Chennai, operates a network of 25 branches across India, specialising in foreign exchange services, including currency exchange, travel cards, remittances, and travel insurance. The company plans to expand into Tier II and III cities and explore international markets.

“The Indian foreign exchange market is worth over $17 billion and is projected to exceed $21 billion in the next few years, driven by rising travel demand,” says Pavan Kavad, Managing Director of Prithvi Exchange. In an interview with Bizz Buzz, he highlights the importance of strategic forex planning, regulatory compliance, and digital tools for better exchange rates. Looking ahead, the company aims to diversify into corporate travel and BFSI services while strengthening its position in the evolving NRI remittance and financial services ecosystem

How big do you reckon is the Indian foreign exchange market?

One important and expanding aspect of the Indian financial scene is the foreign exchange market. According to official figures from the Liberalized Remittance Scheme, the industry is worth more than $17 billion dollars. This value is predicted to explode, reaching more than $21 billion within the next 2-3 years especially in the rising tourism industry. As more Indians travel for leisure, business, education, and medical reasons, the demand for foreign exchange services grows. This surge illustrates that organizations like Prithvi Exchange have the potential to serve a growing client base while also contributing to the increasing forex market.

How can clients get the best deals for their foreign exchange?

To get the best foreign exchange deals users must approach their transactions strategically. Preparation is crucial; last-minute purchases may result in higher prices due to limited supplies or unfavourable currency rates. Travelers who plan ahead of time can compare rates, look at market trends, and make more informed judgments. Additionally, consumers can observe real-time exchange rates, establish rate alerts, and even simply conduct transactions by utilizing digital tools. These solutions not only provide convenience, but also empower customers to make data-driven decisions. At Prithvi Exchange, we advise our customers to stay informed and plan ahead for their forex requirements, maximizing value and minimizing needless financial strain when they travel.

What rules should clients follow while buying and selling foreign exchange?

Tourists buying foreign exchange must be aware of crucial regulatory guidelines to ensure a smooth transaction experience. For example, passengers are allowed to carry up to $3,000 in cash with the remaining $250,000 of the Liberalized Remittance Scheme (LRS) limit being sent via authorized methods or transferred into a forex card. Understanding these guidelines is critical for avoiding penalties or problems during foreign travel. Also keeping track of the necessary papers such as a valid passport, visa, and trip schedule, is critical for a smooth forex transaction.

What kind of target audience does Prithvi Exchange cater to?

Prithvi Exchange caters to diverse customers with various needs across nationalities. Our major target group consists of business travelers, holidaymakers, students traveling for international education and those migrating abroad. Each segment has distinct needs, ranging from competitive exchange rates and remittance solutions to personalized forex cards. For example, a recent student client described how our personalized services assisted them in navigating the complex forex laws and ensuring prompt payment of their abroad education expenses, resulting in a stress-free admission. By understanding and meeting these diverse needs, we have established ourselves as a dependable partner for all foreign exchange needs, providing a smooth experience for our clients.

Which of your services is the most profitable and why?

Our retail and corporate businesses are among the most profitable at Prithvi Exchange. Our client’s constant dependence on us for currency exchange, indicate their commitment and is the driving force behind our success. Over the years our commitment in offering excellent services and fair pricing has allowed us to retain existing clients while obtaining new ones. For example during peak travel season our retail segment experiences increased demand from travelers looking for discount rates whereas our corporate clients rely on us for seamless large-scale forex transactions to meet their international business needs. But problems like fluctuating currency rates and regulatory changes have tested our endurance. By adapting to these changes and implementing our knowledge, we generated a balanced and sustainable revenue model.

What is your opinion on projecting the Rupee as the new Dollar?

The plan to pitch the Indian rupee as the next dollar is impressive but it’s too early. There is a long way to go before a change like this can be executed. The Rupee has lately dropped from Rs 83 to Rs 86.60 against the USD, following months of range-bound volatility. This pattern demonstrates the USD's continuous strength in global markets. Significant economic and regulatory reforms are required for the rupee to acquire comparable status, including increased worldwide recognition and reduced reliance on other currencies for foreign trade.

How has the company grown its business over the years?

Prithvi Exchange has had extraordinary growth over the years, as evidenced by a constant expansion of our branch network and improvements in both top- and bottom-line performance. This expansion has been fueled by strategic activities such as recruiting new clients, opening new branches in important locations, and assembling a strong workforce to provide great service. We have effectively expanded our footprint by meeting customer needs and industry developments while prioritizing operational effectiveness and customer satisfaction.

What are your growth projections for the next five years?

Also, expansion and diversification has always been on cards. We plan to enter in other related sectors such as corporate travel booking and BFSI (Banking, Financial Services, and Insurance) businesses over the next five years. We are optimistic on the goals we can achieve and enhance our market position by implementing an integrated approach.

How important is the NRI business for your company?

Non-Resident Indian's (NRI) are also important part of our business. In the past many NRIs have returned to India with foreign currency. However recent trends indicate a growing desire to transfer payments directly to bank accounts in India. This trend indicates that our NRI clients, preferences are shifting, emphasizing the significance of adaptable and innovative solutions to satisfy their needs. Understanding these trends allows Prithvi Exchange to continue refining its solutions to meet the evolving needs of this important customer group.

Which financial businesses complement your business?

Several financial and related industries have excellent synergies with our firm, which expands our service offerings and market reach. Banks, NBFCs (Non-Banking Financial Companies) travel agencies and consultants for international education are also key secondary sectors. These relationships enable us to reach a bigger audience by offering packaged services that address a wide range of customer needs, including holiday bookings and educational remittances. Such agreements also help us remain competitive and expand our footprint in the turbulent foreign exchange market.