Indian residents remitted 24 per cent less money abroad for education in August, marking the lowest level in approximately eight years. 

The decline seems to be inspired by factors that are reshaping Indian students’ overseas education patterns. These factors include tighter immigration and visa rules in traditional destination countries like the United States and Canada, which are weighing heavily on study abroad spending, Businessline reports. 

Coupled with a weak Indian rupee and rising living and tuition costs abroad, many families are reconsidering the scale of their overseas commitments.

Data from the Reserve Bank of India (RBI) indicates that remittances under the Liberalised Remittance Scheme (LRS) for “studies abroad”, which includes tuition, accommodation, living expenses, admission fees and related expenses, have reached the lowest level since 2017.

In addition, Indian students are increasingly favouring destinations in Europe, Australia and the Middle East over the US and Canada, drawn by lower costs, more favourable scholarships and relaxed immigration norms.

At the same time, domestic higher-education institutions are gaining traction among students and families as a feasible alternative. Lending for overseas education is also under stress, with banks and non-banking financial companies (NBFCs) tightening loan eligibility requirements after facing repayment issues.

The loss in travel and education remittances reduced overall outward remittances under LRS in August 2025 to USD 2.64 billion, a 17.7 percent decrease from USD 3.21 billion in August 2024.

Total outward remittances from April to August 2025 are down approximately 6.9 per cent Year-over-Year (YoY) compared to April to August 2024. Remittances to education are down 28 per cent YoY from April to August compared to the same five-month period previous year.