Currency slide, visa curbs push Indian students to rethink overseas study plans

A weakening Indian rupee, tighter visa rules and softer job prospects in Western economies are forcing many Indian students to reconsider plans for higher education abroad, according to a BBC report.

After years of preparation, 29-year-old content creator Pragati Priya from Jharkhand has decided to pursue a master’s degree in global economic affairs in Rome this September. While she views the course as a pathway to better opportunities in Europe, she says the rising cost of overseas study has created significant financial strain.

The depreciation of the rupee against major currencies, particularly the euro and US dollar, has sharply increased tuition and living expenses for Indian students. Priya said she now faces a much larger loan burden than initially expected, raising concerns about long-term repayment.

Her situation reflects a broader trend among Indian students, who remain the world’s largest group of international learners. More than 1.2 million Indians were enrolled in overseas higher education in 2025, overtaking China as the leading source of global student mobility.

However, education consultants and student groups report a slowdown in demand. Enrolments to the UK and US have reportedly fallen by around 20% over the past two years, with further declines expected. Stricter visa regimes, post-study work restrictions and uncertainty in labour markets are contributing to the shift.

Currency depreciation has compounded these pressures. The rupee has weakened by more than 10% against the US dollar in the past year, and by an estimated 35% to 47% against major study destinations’ currencies since 2019, according to industry estimates cited in the report.

The financial strain is also affecting students already abroad, some of whom are being forced to refinance loans or seek additional funding to complete their studies.

At the same time, job prospects for graduates remain uncertain. Student representatives say many international graduates are struggling to secure skilled employment and are instead turning to gig-economy work, sometimes long after graduation.

Despite these challenges, demand for overseas education remains strong, though patterns are shifting. Countries such as Germany, Ireland and Italy are increasingly attracting Indian students due to lower tuition fees and more favourable post-study work options.

Experts warn that traditional destinations such as the UK and US could face longer-term consequences if affordability and immigration pressures continue to deter Indian applicants, one of their largest international student groups.

By Aghakazim Guliyev