Indians Cut Foreign Study Spending Amid Visa Struggles
In recent times, Indian families are rethinking their overseas education expenditures. The Reserve Bank of India's latest data reveals a worrying trend: remittances for foreign studies have plummeted to their lowest levels in seven years. Between January and June 2025, Indians sent only $1.16 billion abroad under the Liberalised Remittance Scheme (LRS), marking a 22% decline compared to the previous year.
This decrease in remittances can be attributed to multiple factors, one of which is the tightening of visa regulations in key countries like the US, Canada, and Australia, making it increasingly challenging for Indian students to secure admission abroad. For instance, Canada has recently doubled its minimum living expense requirements, while Australia has raised the IELTS score needed for various student categories.
Moreover, the US Department of Homeland Security has proposed changes that could restrict international students' duration of stay, further complicating the landscape for those wishing to study in the US. Such developments have led many families to reconsider investing in foreign education.
As a result, there is a noticeable shift in preference towards domestic educational institutions. Many Indian families are now exploring local universities that offer quality education, reducing their reliance on foreign studies. This shift is evident in the education loan sector, where growth rates for loans have also started to decline. According to reports, Indian banks witnessed only a 14% growth in outstanding education loans year-on-year, down from 20% in the previous year.
Financial analysts are observing this trend closely, suggesting that tightening visa norms may lead to a significant reallocation of resources from foreign education to domestic opportunities. This shift is also reflected in the changing landscape of education loans, where the share of loans linked to US education has decreased significantly.
In conclusion, as Indian families navigate the complexities of international education amidst strict visa policies, the focus is shifting towards domestic education solutions. This could potentially reshape the future landscape of higher education in India, where local institutions may benefit from increased enrollment and investment.
