The wider geopolitical tensions, and the falling rupee’s exchange rate against the dollar are likely to affect Indian students’ choices in pursuing higher education abroad.
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As of 2025, government data show that about 1.8 million Indian students are studying worldwide in schools and universities or other tertiary institutions. Around one-fourth of them are in West Asian countries, with the largest numbers in the UAE (2,53,832) and Saudi Arabia (75,830), followed by Kuwait (50,000), Qatar (49,346), Oman (44,847), Bahrain (28,620), Iran (2,965), and Israel (900). Since the conflict involving Iran, the U.S., and Israel began, many institutions have suspended offline classes and shifted to online mode. Sanjay Laul, founder of MSM Unify, a global education marketplace, says several universities moved online and many students returned to their home countries.
According to the data presented by the Government of India in Parliament, about 10,000 Indian students travelled to West Asian countries such as Iran, Israel, Bahrain, the UAE, Kuwait, Saudi Arabia, Qatar, and Oman over the past three years from 2022 to 2024. Mr. Laul says that West Asian countries have long been a preferred choice for Indian students seeking more affordable higher education compared to destinations in the West or Europe. “However, since the onset of the conflict involving Iran, the U.S., and Israel, enquiries for these countries have declined. If the situation continues, students may either postpone plans to study in the region or begin considering alternative destinations in Europe,” he added.
Rupee fall burden students abroad
Canada tops the list with a little over four lakh twenty-seven thousand students (4,27,085 students), followed by the United States with a little over two lakh fifty-five thousand students (2,55,447), Australia with just under two lakh students (1,96,108), the United Kingdom with a little over one lakh seventy-three thousand students (1,73,190), and Germany with just over fifty-two thousand students (52,197).
Together, these five countries account for about three-fifths (60%) of roughly one point eight million Indian students abroad (1.8 million).
According to the Reserve Bank of India (RBI), annual outward remittances under the “studies abroad” category have risen by over 2,000%, from USD 0.16 billion (₹975 crore) in 2013–14 to nearly USD 3.4 billion (₹29,000 crore) in 2023–24. This amount is roughly half of India’s higher education budget, which stood at ₹55,000 crore in 2023–24. “While these remittances relate to the roughly 3% of Indian students who study abroad, the higher education budget serves the remaining 97% who pursue their studies within India. It is also important to note that RBI data on outward remittances does not capture the full expenditure incurred by Indian students overseas, such as tuition, housing, and living expenses,” RBI noted.
Mr. Laul notes that the depreciation of the Indian rupee is raising the effective cost of foreign education, putting pressure on families whose children are already studying abroad. As of April 6, the rupee stood at 92.85 against the U.S. dollar. “If a student and their family were budgeting at an exchange rate of ₹84 to ₹85 per dollar six months ago, and the rupee has now slipped to ₹94, that 8 to 10% depreciation directly raises the total cost of studying abroad. The impact is felt not only in tuition fees but also in living expenses at the destination.” Mr. Laul added that this may also affect the decisions of those planning to study abroad, as rising costs in foreign destinations become a concern. At the same time, countries in West Asia such as the UAE, and Saudi Arabia which offer education at lower costs than the U.S., are facing geopolitical tensions that add to the uncertainty.
Overseas study dip
As per the Ministry of Education, this student data is compiled manually based on students’ verbal disclosure at the time of immigration clearance or the type of visa issued by the destination country. The number of Indians who stated their purpose of travel as study or education was around 3.6 lakh in 2016, rising steadily to over 5.8 lakh in 2019, before falling to 2.6 lakh in 2020.
This drop coincides with the year of the COVID-19 outbreak. The recovery began in 2021 with around 4.4 lakh students and then accelerated to about 7.5 lakh in 2022 and around 9 lakh in 2023, roughly 55% higher than the 2019 pre-COVID figure. However, the numbers declined again to around 7.7 lakh in 2024 and about 6.2 lakh in 2025, which is nearly 30% lower than the 2023 peak. According to the Ministry of Education, the studies abroad are a matter of individual will and choice, which is contingent on a variety of factors such as affordability, access to bank loans, exposure to foreign societies, aptitude for particular branches of studies etc.
However, Mr. Laul added that student outflows usually depend on a few key variables, and the key one is whether destination countries are willing to admit that volume of learners. Countries such as Canada, the U.S., and the United Kingdom have regulatory bodies that effectively determine how many international students their institutions can take in a given academic cycle. During the COVID period, student mobility was heavily disrupted. In the immediate post-COVID phase, many of these countries allowed universities to expand intakes to accommodate deferred demand. That expansion became a major driver of the spike in Indian students going abroad.
If the numbers are falling now, the destination countries tighten the overall number of seats available to international applicants. Further, Mr. Laul adds that amid changing relations and tighter regulations in key destinations such as the United States and Canada particularly, which together host about 36% of the 1.8 million Indian students abroad, students are diversifying their plans towards European countries, with the United Kingdom leading the choice, followed by Germany and France.
(The author is an independent journalist based in Hyderabad covering politics, human rights, and environmental issues, primarily from Andhra Pradesh and Telangana. He is now expanding his work to include education across all States.)
Published – April 08, 2026 08:15 am IST
