Foreign Degree Loses Sheen as Students Question ROI

From currency depreciation and rising living costs to visa tightening and doubts over return on investment (ROI), Indian families are rethinking the once-coveted foreign degree.

- Georgie Koithara

In 2024, 759,064 Indians went abroad for studies, a 15 percent drop from 892,989 in 2023, according to government data.

The sharpest declines were for Canada, the United Kingdom, and the United States, with student numbers falling by 41 percent, 27 percent, and 13 percent, respectively. Australia and China also saw lower inflows.

Despite this, the US remained the top destination, hosting over 204,000 Indian students, followed by Canada with 137,608. Germany, Bangladesh, Russia, and Ireland saw double-digit growth, with Germany up by 49 percent. France, the Philippines, and Uzbekistan also recorded increases.

The overall slowdown and shift in preferred destinations signal a deeper change in student and family priorities. The foreign degree no longer sells itself. This shift is also reflected in the Reserve Bank of India's Liberalised Remittance Scheme data, which shows that remittances for studies abroad dropped 29 percent year-on-year in May to $149.8 million.

Economic pressures are at the forefront of this. Since early 2021, the rupee has weakened by roughly 17.5 percent against the dollar. The currency slide has compounded financial strain, particularly when paired with inflationary pressures in major study destinations.