Indian Students Abroad Spending 2025

Indian Students' Abroad Spending Drops to $1bn in 2025

The Reserve Bank of India has revealed that Indian students spent $1bn on studying abroad between April and August 2025, a significant drop from previous years. This shift is due to students exploring affordable options in Europe and an increase in student loans for domestic programs.

The Reserve Bank of India's data shows a 22% decline in study abroad remittances in the past year, reaching $1bn between April and August 2025. This decrease aligns with a 15% fall in Indian students studying abroad in 2024. The decline in remittances is also reflected in the overall drop of 17.7% in Liberalised Remittance Scheme (LRS) remittances in August 2025.

Indian families supporting their children's education abroad lost Rs 1,700 crore ($200 million) in 2024 due to hidden charges. Despite this, many students are now using student loans for domestic programs, leading to a 50% growth in assets under management (AUM) for non-banking financial companies (NBFCs).

Students are increasingly seeking scholarships and programs that offer stipends to avoid paying the full cost of courses and accommodations. More Indian students are exploring affordable options in Europe, leading to lower spending on studying abroad compared to previous years. While there is no specific estimate for the expenditure of Indian students in 2025 for degrees at public universities in Europe, typical annual tuition fees range between 2,000 and 10,000 euros, with living costs varying by country.

The decline in study abroad remittances reflects a shift in Indian students' preferences, with more students opting for domestic programs and affordable options in Europe. Despite the challenges, students are finding ways to fund their education, with student loans and scholarships becoming increasingly popular.