Foreign travel to get cheaper after 2% TCS cut: 10 international destinations Indians are eyeing now

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.

• India reduces TCS on foreign travel to 2%, lowering overseas holiday costs.
• Searches for international destinations surge after the budget announcement
• Thailand, Vietnam, Malaysia, Sri Lanka, Dubai, Maldives, Switzerland, Japan, Bali trending

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Planning an overseas holiday this year? India’s Union Budget 2026 may have just made it easier on your wallet.

The government’s decision to reduce Tax Collected at Source (TCS) on foreign travel to a flat 2 per cent has come as a welcome relief for travellers, particularly middle-class families and young professionals looking beyond domestic vacations.

Soon after the announcement, searches for international destinations from India jumped sharply, travel platforms indicate, as more Indians began exploring overseas options. The lower TCS has reduced the burden of hefty upfront payments, making budgeting for international trips simpler and more predictable.

Earlier, higher TCS rates often meant travellers had to set aside extra funds while booking flights, hotels, or tour packages. With the revised structure, foreign travel is no longer viewed as a major financial stretch—reviving interest in both short-haul Asian destinations and long-haul favourites.

So, where are Indian travellers planning to go next after the TCS cut? Here are the international destinations Indians are eyeing now:

1. Thailand

A long-time favourite, Thailand continues to attract Indian tourists with its visa-friendly policies, affordable resorts, street food culture, and vibrant nightlife. From Bangkok and Pattaya to Phuket and Krabi, Thailand offers excellent value for money, making it one of the first choices for budget-friendly international trips.

2. Vietnam

Vietnam has emerged as a fast-rising destination for Indians seeking scenic landscapes, rich history, and low daily expenses. Cities like Hanoi, Ho Chi Minh City, and Da Nang are drawing travellers with their mix of heritage sites, beaches, and local cuisine—often at costs lower than many Indian hill stations.

3. Malaysia

With direct flights from multiple Indian cities, Malaysia remains popular for short international getaways. Kuala Lumpur’s shopping districts, Genting Highlands’ theme parks, and Langkawi’s beaches make it a versatile destination for families, honeymooners, and solo travellers alike.

4. Sri Lanka

Close to home and culturally familiar, Sri Lanka is seeing renewed interest from Indian travellers. From tea plantations in Nuwara Eliya to beaches in Mirissa and historic sites in Kandy, the island nation offers diverse experiences within a compact travel radius and reasonable budgets.

5. Dubai

Dubai continues to trend strongly, especially for short luxury breaks and shopping holidays. Easy visa access, frequent flights, and a wide range of accommodation—from budget hotels to ultra-luxury resorts—keep Dubai high on the wishlist for Indian travellers.

6. Maldives

Traditionally viewed as a luxury destination, the Maldives is attracting a broader segment of Indian tourists post-TCS cut. With budget guesthouses, all-inclusive resort deals, and shorter flight durations, Maldives holidays are increasingly seen as achievable rather than aspirational.

7. Switzerland

Among long-haul destinations, Switzerland is witnessing increased interest despite its premium reputation. Indian travellers are drawn to scenic train journeys, alpine landscapes, and iconic towns like Lucerne and Interlaken, with better financial planning now possible due to the lower TCS impact.

8. Tokyo, Japan

Japan’s capital city is trending among Indians looking for technology, culture, and culinary experiences. Tokyo’s efficient public transport, cherry blossom season, and shopping districts make it an aspirational yet increasingly planned destination for Indian tourists.

9. Bali, Indonesia

Bali remains a strong favourite for honeymooners and digital nomads. Known for its beaches, temples, wellness retreats, and affordable villas, Bali offers a mix of relaxation and adventure, making it one of the most searched destinations following the budget announcement.