Remittances for Indian Students Abroad Fall to Five-Year Low
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Remittances by Indians for studying abroad dropped to a five-year low of USD 138.8 million in June 2025, reflecting growing challenges for students seeking overseas education. The figure is less than half the USD 314 million average recorded over the past five years and significantly below the peak of USD 718 million in September 2021.
The decline comes as several countries tighten visa and enrolment criteria for Indian students. The United States and Canada have seen the steepest falls, with remittances linked to US-bound students down by nearly 30% compared to last year. Canada has also recorded lower inflows, while the United Kingdom has emerged as the biggest beneficiary amid shifting student preferences. Australia, too, has introduced restrictions on student intake, turning down visa applications from certain geographies.
Despite the sharp fall in education-related remittances, overall remittances in June stood at USD 2.1 billion, the lowest since February 2025 but still supported by strong spending on travel. Travel-related remittances continue to exceed the five-year average of just over USD 1 billion.
Industry experts say the dip highlights the impact of stricter immigration policies on Indian students’ global mobility. “We are seeing student remittances down by 10-15%, largely due to the US and Canada,” said Hariprasad MP, Executive Director and Business Head of Ebix World Money. “The UK has been the biggest gainer as other destinations introduce tougher rules.” He adds.
With countries like the US, Canada, Australia and even the UK tightening student entry, many Indian families are rethinking overseas education as financial commitments rise and opportunities shrink. Analysts believe this trend could continue unless host nations relax student visa pathways.
The sharp contrast between education and travel spending suggests that while Indians are willing to spend on tourism, uncertainties around international study routes are discouraging families from remitting large sums abroad.
Source: TIMES OF INDIA
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