The appeal of foreign destinations for Indian students studying abroad appears to have significantly reduced. The latest RBI 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%.
Recent numbers from some of the top countries show a declining trend. A 44% drop in Indian student arrivals to the US has been witnessed, as visa issuance slumped. Overall, the United States recorded a 19% drop in student visa issuances in August 2025 compared to the same month last year. Canada immigration cap has reduced international student arrivals by 70% so far in 2025.
Outward Remittances on Education
The data on Outward Remittances under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) for Resident Individuals shows a significant fall in money sent abroad for the purpose of studying.
The decline in education remittances is attributed to increased study abroad costs, stricter visa regulations in countries like the US, UK, and Canada, and the depreciation of the rupee vs the dollar.
Pavan Kavad, Managing Director, Prithvi Exchange Limited says, “The 24% fall in education remittances shows that India’s foreign exchange spending on overseas studies is slowing due to a combination of strict policy measures and rising costs in major study destinations.”
The US has been the most preferred study abroad destination for Indian students. However, since Trump took the presidency in January, several measures have been implemented to make foreign students unwelcome in the US.
Apart from the US, even Canada and the UK have implemented measures to reduce the temporary immigrant population, including students and foreign workers.
“Tighter visa rules in the US, UK and Canada, currently the top three choices for Indian students, have resulted in more visa refusals, additional documentation requirements and extended processing timelines. This has delayed fee transfers that typically surge ahead of major academic intakes in August and September,” says Kavad.
The cost of studying abroad is also rising for Indian students. “The cost of studying abroad has risen sharply, with annual expenses for Indian students surpassing CAD 30,000 in Canada and £22,000 in the UK, making families more cautious about large, upfront remittances,” adds Kavad.
A depreciation of the Indian Rupee against the US dollar also plays a role in education abroad. The INR has depreciated by nearly 4.5% in the last one year and 2.6% so far in 2025.
“While education remittances could rebound once visa backlogs ease and new academic cycles begin, the current trend shows how India’s outward forex flows are now more directly influenced by destination-country immigration policies, exchange-rate pressures, and household affordability concerns, rather than just student demand,” says Kavad.
Raghav Gupta, Founder & CEO, Futurense Technologies shares his views on the Indian mindset of studying abroad:
“The decline in study-abroad remittances isn’t just a financial signal … it reflects a larger mindset shift among Indian families. For decades, overseas education was glorified in our cultural narrative — from Bollywood films to social media success stories. But content is now playing the role of a massive truth serum. YouTube, Instagram, and digital communities are filled with real accounts from students who struggle abroad — low-pay jobs, visa uncertainties, mental-health issues, and the gap between expectations and reality.
At the same time, the world is becoming less globalized. Immigration norms are tightening, post-study work rights are shrinking, and local protectionism is growing across traditional destinations like the US, UK, and Canada. The idea of an international degree as a guaranteed career passport no longer holds true.
What we’re seeing now is a generation making more rational decisions, driven by return on investment rather than aspiration. Many are realizing that the same money — once earmarked for foreign degrees — can yield far higher ROI through high-quality Indian programs, global hybrid models, or specialized upskilling in emerging fields like AI.
This is not a decline in ambition … it’s a re-direction of ambition. India’s talent is still global in mindset, but far more strategic in execution. That’s a healthy evolution.”