India’s Study Abroad Remittances Hit Eight-Year Low Amid Global Uncertainty
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Study abroad remittances from India have plunged to their lowest level in eight years, according to new data from the Reserve Bank of India (RBI). Between April and August 2025, Indian residents sent just over US$1 billion abroad for overseas education — a 58% decline from the same period in 2021, when remittances peaked following the pandemic.
The RBI’s monthly bulletin revealed that spending on tuition, accommodation, and living costs for students abroad has been steadily declining since 2022. After a sharp rise to US$2.37 billion in 2021, the figure fell to US$1.48 billion in 2022 and US$1.28 billion in 2024, before hitting the lowest point since 2017 this year.
Experts attribute the fall to a combination of global and domestic challenges. “Part of the decline reflects a slowdown in the number of Indian students heading to the US, where private universities are costly, and a growing preference for affordable public universities in Europe,” said Rahul Subramaniam, founder of Athena Education.
Canada and the UK have also become less accessible to Indian students, with 80% of Canadian study permits rejected in 2025 and Britain planning to limit its Graduate Route visa. Meanwhile, a weakening Indian rupee and stricter visa rules have further discouraged overseas enrolments.
According to The PIE News, remittances have also been affected by the rise of education loans in India. Many students are now using domestic financing for Indian universities, particularly MBA programmes, as foreign loans become harder to obtain due to uncertain post-study work opportunities abroad.
The overall Liberalised Remittance Scheme (LRS) outflow also declined 17.7% year-on-year in August 2025 to US$2.6 billion. Analysts say this reflects both cautious spending and increased hidden banking costs.
Industry experts warn that this sustained drop in overseas education spending could reshape India’s international student landscape, as more students opt for cost-effective destinations such as Germany, France, Japan, and South Korea — or choose to pursue higher studies within India itself.
Source: THE PIE NEWS
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