India’s outward remittances for overseas education fell 24% year-on-year to about $0.32 billion in August 2025 from $0.42 billion in August 2024, the lowest for the month since 2017, as per a report by The Times of India. Although, August usually sees higher remittances at the start of the academic season in the US.
“The 24% fall in education remittances highlights how closely India’s foreign exchange outflows are tied to a complex mix of global policy, economic, and behavioural shifts shaping India’s outward forex flows,” Pavan Kavad, MD of Prithvi Exchange (India) Ltd told TOI.
Education spending is a major component under the Liberalised Remittance Scheme after travel, but its momentum is slowing. Remittances have declined steadily after peaking at $2.37 billion in 2021. From $787.8 million in 2017, they rose to $1.95 billion in 2019, fell to $1.12 billion in 2020 during the pandemic, and then briefly recovered in 2021.
“Stricter visa norms in top study destinations such as the US, UK, and Canada have had a direct impact on the timing and volume of education remittances,” Kavad added. Families are delaying or deferring payments due to higher rejection rates and longer processing times.
Education counsellor Karan Gupta said many students aiming for diploma courses or mid-tier universities abroad are reconsidering. “Those heading for diploma courses or mid-tier universities abroad are pulling back, because the return on investment no longer stacks up,” he said to TOI.
“When the USA is shutting its doors on our students, they are not going to other countries, rather staying back, right here at home,” Pratibha Jain told TOI. She stated that India’s universities now offer a range of courses comparable to international standards, especially at the undergraduate level.
Top performers, however, continue to apply abroad, with admissions doubling or tripling in some cases, Gupta said. Families are also shifting to more affordable destinations like Australia and New Zealand, which offer simpler visa processes and lower living costs.
“Many parents have become increasingly cautious,” Kavad said. “They’re opting for partial payments or splitting remittances to manage currency volatility and uncertainties in foreign admission timelines. The moderation in education-related outflows isn’t just about fewer students going abroad — it reflects a more cautious and strategic approach to overseas spending.”
(With TOI inputs)
“The 24% fall in education remittances highlights how closely India’s foreign exchange outflows are tied to a complex mix of global policy, economic, and behavioural shifts shaping India’s outward forex flows,” Pavan Kavad, MD of Prithvi Exchange (India) Ltd told TOI.
Education spending is a major component under the Liberalised Remittance Scheme after travel, but its momentum is slowing. Remittances have declined steadily after peaking at $2.37 billion in 2021. From $787.8 million in 2017, they rose to $1.95 billion in 2019, fell to $1.12 billion in 2020 during the pandemic, and then briefly recovered in 2021.
“Stricter visa norms in top study destinations such as the US, UK, and Canada have had a direct impact on the timing and volume of education remittances,” Kavad added. Families are delaying or deferring payments due to higher rejection rates and longer processing times.
Education counsellor Karan Gupta said many students aiming for diploma courses or mid-tier universities abroad are reconsidering. “Those heading for diploma courses or mid-tier universities abroad are pulling back, because the return on investment no longer stacks up,” he said to TOI.
“When the USA is shutting its doors on our students, they are not going to other countries, rather staying back, right here at home,” Pratibha Jain told TOI. She stated that India’s universities now offer a range of courses comparable to international standards, especially at the undergraduate level.
Top performers, however, continue to apply abroad, with admissions doubling or tripling in some cases, Gupta said. Families are also shifting to more affordable destinations like Australia and New Zealand, which offer simpler visa processes and lower living costs.
“Many parents have become increasingly cautious,” Kavad said. “They’re opting for partial payments or splitting remittances to manage currency volatility and uncertainties in foreign admission timelines. The moderation in education-related outflows isn’t just about fewer students going abroad — it reflects a more cautious and strategic approach to overseas spending.”
(With TOI inputs)
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