MUMBAI: India’s outward remittances for abroad training fell 24% year-on-year to about $0.32billion in Aug 2025 from $0.42billion in Aug 2024. The determine was the bottom for Aug since 2017, a month that sometimes sees increased remittances in the beginning of the educational season in US.“The 24% fall in training remittances highlights how intently India’s international change outflows are tied to a fancy combine of worldwide coverage, financial, and behavioural shifts shaping India’s outward foreign exchange flows,” mentioned Pavan Kavad, MD of foreign money change agency Prithvi Change (India) Ltd.Training-related spending, one of many largest elements beneath the Liberalised Remittance Scheme after journey, is dropping momentum, even accounting for pocket cash wired beneath the “upkeep of shut family members” class.
Remittances see regular decline after peaking at $2.3bn in 2021
From $787.8million in 2017, remittances surged to $1.95bn in 2019, earlier than the pandemic lowered it to $1.12bn in 2020. The post-lockdown rebound of 2021 ($2.37 bn) proved short-lived. Since then, slide has been regular.“Stricter visa norms in prime research locations such because the US, UK, and Canada have had a direct impression on the timing and quantity of training remittances,” Kavad added. “Many college students face increased rejection charges or extended processing, forcing households to delay or defer funds.”Training counsellor Karan Gupta mentioned a shift is underway. “These heading for diploma programs or mid-tier universities overseas are pulling again, as a result of the return on funding now not stacks up,” he mentioned. One other counsellor, Pratibha Jain, mentioned when “the USA is shutting its doorways on our college students, they don’t seem to be going to different nations, slightly staying again, proper right here at dwelling.” She added that India’s personal universities at the moment are “providing a variety of programs, many at par with the world,” prompting extra college students to remain again for undergraduate research and look abroad just for postgraduate programmes.Gupta, nonetheless, identified that prime performers proceed to use overseas in report numbers. “Admissions have doubled and even tripled in some circumstances,” he mentioned. “What we’re watching now isn’t simply fewer college students going abroad — it’s a recalibration of expectations, priorities, and monetary choices amongst households and establishments alike.”With annual training prices hovering — CAD 30,000 in Canada, £22,000 within the UK — and a weakening rupee, households are additionally turning to cheaper options abroad corresponding to Australia and New Zealand, which supply less complicated visa guidelines and decrease dwelling prices.“Many mother and father have grow to be more and more cautious,” Kavad mentioned. “They’re choosing partial funds or splitting remittances to handle foreign money volatility and uncertainties in international admission timelines. The moderation in education-related outflows isn’t nearly fewer college students going overseas — it displays a extra cautious and strategic method to abroad spending.”