Rupee Slump and Visa Crackdowns Push Indian Students to Rethink Overseas Studies

Pragati Priya, a 29‑year‑old content creator from Jharkhand, recently enrolled in a master’s programme in Rome. She hopes the degree in global economic affairs will open doors in Europe, but the steep decline of the rupee against the euro has pushed the cost of her studies into the mid‑four‑figure range of dollars.

The rupee has fallen 10 % against the US dollar in the last year, while a wider basket of currencies has declined 35‑47 % since 2019. That has forced students like Priya to refinance loans and take on debt that feels “unfathomable” when they ask themselves: will I ever be able to repay it?

India now sends more than 1.2 million students abroad each year, overtaking China as the largest source of international pupils. Yet the market’s breath is tightening: UK and US universities have reported enrolment falls of 20 % over the last two years, with another 10‑15 % decline expected. The reduced student numbers are also a blow to host universities that have ramped up infrastructure and marketing to attract Indian talent.

Sushil Sukhwani, founder of Edwise International, notes that visa requirements have worsened the situation. The UK saw a 76 % drop in Indian enrolments for the January intake, while US admissions dipped 7 % between February 2025 and February 2026. The rupee’s fall compounds refinancing difficulties for those already abroad, as their future instalments now cost more dollars.

Student writing exams in a classroom
Indian students go abroad in increasing numbers, but rising costs and visa hurdles are forcing many to rethink their plans.

With the “big four” destinations (US, UK, Canada, Australia) forecast to see a 0.5 % annual decline in enrolments through 2030, many students are turning to alternatives. Germans, Irish, Italian and other European universities attract interest thanks to lower tuition, attractive work‑postings and a more favourable value proposition, Sukhwani says, as his firm pivots toward these “new‑age destinations”.

In Priya’s case, Italy was the cheapest route: tuition is roughly half what she would pay in the UK, and a two‑year US degree is out of reach. Even so, her story echoes a broader trend: families are hesitant to fund pricey overseas studies when the currency crisis makes debt untenable and the job market abroad is uncertain, especially as many students now end their education in the gig economy rather than their field of study.

Economic analysts warn that the decline in Indian student flow will hit host universities’ revenue streams and freshen sharp competition in the global education market. “The depreciating currency, the job market, immigration policies”—all combine to form a perfect storm that no one wins,” says Sudhanshu Kaushik, founder of the North America Association of Indian Students, underscoring how “the students, colleges, towns, and broader economy all suffer.”

Ultimately, this shift poses a serious challenge to US and UK higher‑education diplomacy, which has long relied on Indian students as a soft‑power lever.