Spending on foreign studies by Indians drops by 22%, lowest since 2018

Indians are sending much less money abroad for higher studies, with official data showing the sharpest drop in seven years. According to the Reserve Bank of India (RBI), outward remittances under the Liberalised Remittance Scheme (LRS) for education were $1.16 billion in the first half of 2025. This is 22% lower than the same period in 2024 and the lowest since 2018, when the figure was $1.06 billion.

The decline was especially visible in June 2025, when only $139 million was sent abroad for education. This was the lowest monthly level since April 2020, when the COVID-19 pandemic disrupted international travel and admissions.

Officials and experts attribute the fall to tougher rules for student visas and admissions in major study destinations. In Canada, the required proof of funds for international students has been raised to 22,895 Canadian dollars. In Australia, authorities have increased the minimum English test score for certain categories.

The United States has also proposed a new rule that limits student visas to four years, requiring an extension if studies go beyond that period.

Because of these changes, fewer students are able to move abroad in the first half of the year. Normally, outward remittances are higher in the second half, matching the global admission cycle, but the first-half drop signals a big shift compared to previous years.

Industry experts such as Malvika Bhotika, Director at Crisil Ratings, said the fall in foreign education spending shows students are looking at other countries with easier visa rules, such as Germany, and are also considering domestic universities as options.

The drop in remittances comes at a time when the number of Indian students going abroad has grown steadily in the last decade. However, stricter entry requirements in top destinations are now creating barriers.