The Economic Survey 2025-26, presented by Union Finance Minister Nirmala Sitharaman, reveals an interesting trend in the mobility of students, both coming to India for studies and Indian students moving abroad for education.
India has emerged as the world’s largest source country of international students. The number of Indians studying overseas has risen from 6.85 lakh in 2016 to over 18 lakh by 2025. In 2024, for every one international student coming to India, 28 Indian students went abroad, with significant associated foreign exchange costs, reveals the Economic Survey 2025-26.
Indian students abroad are highly concentrated in a small group of host countries, including Canada, the USA, the UK, and Australia, whose attractiveness is driven by perceived quality, work rights, migration pathways, and strong branding.
Globally, the number of international students has increased from 22 lakh in 2001 to 69 lakh in 2022, with the USA, Canada, UK, Australia, France, and Germany hosting the majority.
Within BRICS, Russia and China have emerged as important education hubs, accounting for more than four-fifths of inbound mobility into the group, although India’s proportion remains in the single digits despite its extensive domestic higher education sector.
Annual Outward Remittance
The forex remitted by Indians students, which has an impact on the forex reserves and the current account deficit (CAD), has increased significantly. The annual outward remittance under the ‘studies abroad’ component has increased to USD 3.4 billion in FY24.
Recent Data
However, recent data shows a decline in Indians’ outward remittances for education under the Liberalised Remittance Scheme, with a 23% decrease in August 2025 for Indians studying abroad.
In August 2025, Indians sent $319.17 million abroad for ‘studies abroad’, compared to $416.39 million sent in August 2024, an annual fall of 23.3%.
Increased study abroad expenses, more stringent visa requirements in nations like the US, UK, and Canada, and the depreciation of the rupee relative to the dollar are likely the factors behind the drop in education remittances.
The US has traditionally been the leading study abroad destination for Indian students. However, following Trump’s presidency beginning in January 2025, various measures have been enacted that create an unwelcoming environment for foreign students in the US. In addition to the US, both Canada and the UK have also introduced policies aimed at decreasing the temporary immigrant population, which includes students and foreign workers.