Shift in Trends: Indian Students Pursue Education Abroad drops 23%

Indian students are increasingly reconsidering overseas education due to rising costs, stricter visa rules, and the rupee's depreciation. Outward remittances for education dropped 23.3% in August 2025 compared to last year. Countries like the US, UK, and Canada have tightened immigration policies, reducing student arrivals. Experts highlight a shifting mindset, with families prioritizing return on investment over aspirations. Many are now exploring high-quality Indian programs and alternative education models for better value.

In a significant shift, the allure of studying abroad appears to be waning among Indian students. According to recent data from the Reserve Bank of India (RBI), the amount of money sent overseas for education under the Liberalised Remittance Scheme (LRS) has dropped sharply. In August 2025, outward remittances for education fell by 23.3% compared to the same period in 2024, with Indians sending $319.17 million abroad, down from $416.39 million the previous year.

Declining Numbers in Popular Destinations

This downward trend aligns with a noticeable drop in Indian student arrivals in some of the most sought-after study-abroad destinations. For instance, the United States has seen a 44% decline in Indian student arrivals, largely due to a slump in visa issuances. In August 2025, the US experienced an overall 19% reduction in student visas issued compared to the same month last year. Canada has also implemented stricter immigration caps, resulting in a 70% decrease in international student arrivals so far this year.

Reasons Behind the Decline

The drop in outward remittances for education is attributed to several factors, including rising costs, stricter visa policies, and the depreciation of the Indian Rupee against major foreign currencies.

Pavan Kavad, Managing Director of Prithvi Exchange Limited, explains, “The 24% fall in education remittances highlights how India’s spending on overseas education is slowing due to a mix of higher costs and restrictive policies in key destinations.”

The United States, traditionally the top choice for Indian students, has introduced measures that make it increasingly difficult for foreign students to study there. Similarly, Canada and the UK have tightened immigration rules, adding hurdles such as more visa refusals, additional documentation requirements, and longer processing times. These challenges have delayed fee payments, which typically peak during the academic intakes in August and September.

Moreover, the financial burden of studying abroad has increased significantly. Annual expenses for Indian students now exceed CAD 30,000 in Canada and £22,000 in the UK, making families more cautious about committing to large, upfront remittances. Additionally, the Indian Rupee’s depreciation—4.5% over the past year and 2.6% in 2025 alone—has further inflated the cost of overseas education.

A Broader Shift in Mindset

Beyond financial factors, a cultural and strategic shift is becoming evident. Raghav Gupta, Founder and CEO of Futurense Technologies, believes this decline reflects a deeper change in how Indian families view overseas education.

“For decades, studying abroad was seen as a hallmark of success, glorified in movies and social media. But now, digital platforms like YouTube and Instagram are shedding light on the struggles students face abroad—low-paying jobs, visa uncertainties, mental health challenges, and a gap between expectations and reality,” Gupta notes.

He also points out that the global landscape is shifting. Immigration laws are becoming more restrictive, post-study work opportunities are shrinking, and protectionist policies are on the rise in traditional destinations like the US, UK, and Canada. As a result, the once-strong belief in an international degree as a guaranteed pathway to success is being questioned.

A Strategic Redirection

Rather than a decline in ambition, experts see this trend as a redirection of goals. Gupta explains, “Today’s generation is making more rational decisions, focusing on return on investment rather than mere aspiration. Many are realizing that the funds earmarked for a foreign degree could be better utilized in high-quality Indian programs, global hybrid models, or specialized upskilling in fields like artificial intelligence.”

This strategic approach reflects a healthy evolution in mindset. Indian students remain globally oriented, but their choices are now guided by pragmatism and long-term value.

While education remittances may rebound as visa backlogs ease and new academic cycles begin, the current trend highlights how external factors—such as immigration policies, exchange rates, and affordability—are shaping the decisions of Indian students and their families.

This shift underscores a broader transformation in how Indian talent approaches global education, marking a move toward more calculated and informed choices in an increasingly complex world.