Currency crash and visa crackdowns force Indian students to rethink studying abroad
After years of careful planning, 29‑year‑old Pragati Priya from Jharkhand finally committed to a master’s programme abroad. She will begin a Global Economic Affairs course in Rome this September, hoping the degree will open doors to better opportunities in Europe.
But the steep decline of the rupee against the euro—over 35 % since 2019—means Priya now faces a higher loan. "It has kept me up at night," she told BBC. "I don’t want to burden myself with a student loan that I will never finish repaying."
India overtook China as the top source of international students; more than 1.2 million Indian students studied abroad in 2025. Yet a weaker currency, bleak job prospects in the US and Europe, and stricter visa requirements are prompting many to reconsider the cost‑benefit of overseas study.
Sushil Sukhwani, founder of Edwise International, said enrolments in the UK and US have already dropped by 20 % in the past two years, with another 10‑15 % expected to follow. He noted that 76 % of UK universities reported a decline in Indian student enrolments for the January intake, and US enrolments fell nearly 7 % between February 2025 and February 2026.
The rupee’s fall compounded challenges for students already abroad. Many now need to refinance loans and arrange additional funds because the rupee has slid more than 10 % against the US dollar in the last year. Sukhwani estimates rupee depreciation of 35‑47 % against major study destination currencies since 2019.
Sudhanshu Kaushik, founder of the North America Association of Indian Students in Washington, warned that graduates who arrived hoping for skilled jobs are now taking gig‑economy work. He said the weaker rupee makes overseas education more expensive, reducing families’ willingness to take on debt.
Despite overall demand remaining strong, the market’s future is uncertain. The Global Student Flows Report 2026 forecasts enrolments in the US, UK, Canada and Australia to decline by an average of 0.5 % annually through 2030.
In response, many students are turning to alternative destinations such as Germany, Ireland, Italy, and other EU countries. Mayank Maheshwari, co‑founder of University Living, highlighted lower tuition, favourable post‑study work pathways, strong employment prospects and a more attractive value proposition as key draws.
Priya chose Italy over the UK or US partly because tuition there is roughly half of that in the UK and because completing her degree takes only one year, unlike the two years required in the US.
Experts warn that the UK and US—long reliant on Indian students for revenue and soft‑power—face a perfect storm of economic, regulatory and policy pressures. "The students suffer, the universities suffer, college towns suffer and the broader economy suffers," said Kaushik. "We are retreating from the gains we made in promoting higher education as one of our most influential and profitable forms of soft power," added Sukhwani.
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