With anti-immigration sentiment growing all around, overseas remittances for education drop 44%

With anti-immigration sentiment growing at a fast pace in the West, fewer Indian students are now opting to go abroad for their higher education, leading to a considerable drop in remittances from India to the US. The latest RBI data shows that during the April-July period, outward remittances for education under the LRS (liberalised remittance scheme) dropped by 44 percent year-on-year.

Notably, the Trump administration cracked down heavily on international students in the recent past, which included the deportation of some foreign students, including those from India. Some were even deported or had their visas cancelled for their political views amid the Israel-Palestine conflict. The Indian rupee, meanwhile, has touched historic lows against the US dollar, thus making it more expensive to study in the US. Additionally, the recent visa fee hike for H-1B visas has exacerbated the already hostile stance of the US administration towards immigrants in education and the workforce alike.

In this backdrop, fewer Indians are now opting for US universities for higher education.

Fewer visas for Indians

US student visa arrivals dropped to a four-year low in August on account of a 50 percent drop from India, reflecting lower enthusiasm among international students to study in the US.

Student arrivals to the US fell 19% year-on-year in August, which is a fifth consecutive month of decline, per the data from the International Trade Administration that tracks visa arrivals.

A somewhat similar drop was seen among Indian students going to the UK, with an 11 percent drop reported. Work visas to the UK dropped by 48 percent, bringing overall visa numbers down by 32 percent.

Some call it a temporary phase and believe it stemmed from an interplay of several factors.

“While the decline in remittances is certainly a concern, it’s important to recognize that this is just a temporary phase. Economic fluctuations, shifting global policies, and changing financial priorities can cause such dips, but they often recover as markets stabilise and confidence in international education rebounds,” says Abhijit Zaveri, founder & Director, Career Mosaic.

Rozy Efzal, Co-Founder, Invest4edu, also views it in a similar way. “The decline in enrolments and dip in education remittances reflect a combination of global and domestic shifts. A constant cost and currency pressure, stricter visa and immigration policies in major destinations US, UK, and Canada, leading to greater introspection on ROI, reflecting shifts in student priorities,” says Efzal.

She also attributes the trend partly to the growth of the Indian higher education system.

“Students and parents are becoming more discerning, at the same time India’s higher education ecosystem is expanding rapidly, with global universities setting up local campuses and Indian institutions improving their global standing. Aspiration for study abroad isn't fading, but choices are becoming ROI driven,” she adds.

Meanwhile, Zaveri strikes a positive note as he pins hope on the future. 

“As of early 2025, approximately 1.8 million Indian students were studying abroad, according to the Ministry of External Affairs (MEA). This shows a significant demand for global education, and it’s likely that enrolments will pick up once financial conditions improve and students continue to seek international opportunities for personal and academic growth,” he says optimistically.