New Delhi: Studying abroad has been a dream for Indian students for decades. From the United States to Australia and from the United Kingdom to Canada, Indian youth have sought higher education overseas to earn prestigious degrees. The affection for what is often called ‘vilayati degree’ (foreign degrees) has grown steadily over the decades. But recent trends suggest that the enthusiasm for overseas education among Indians is slowly fading. The signs are clear in the numbers, which show a decline in the amount of money being sent abroad for education expenses.
According to a recent report by The Times of India, the funds sent by Indian students for studying abroad dropped sharply to 138.8 million dollars in June 2025. This figure marks the lowest level in five years. The main reason behind this fall is the increasingly strict visa policies imposed by countries such as the United States, the United Kingdom, Canada and Australia. These regulations have made it harder for Indian students to get visas, discouraging many from pursuing education overseas. Though Indians continue to travel abroad for studies, their spending is noticeably reducing.
When we look back over the last five years, Indian students were sending an average of 314 million dollars annually to fund their studies abroad. In September 2021, this number reached a peak of 718 million dollars. Compared to those highs, the current spending is significantly lower. The drop highlights a slow but steady decline in Indian students’ inclination to study abroad.
The primary roadblock remains the tightening of visa rules. Many students face delays and difficulties obtaining permits, causing uncertainty and frustration. However, experts believe this trend might change in the near future.
Hariprasad MP, executive director and business head at Abix World Money, said the amount sent by students has fallen by 10-15%, with the sharpest drop seen in the United States and Canada. “Visa restrictions in the United States have caused a 30% decrease in funds sent compared to a year ago. Canada has experienced a similar decline,” he explained.
Meanwhile, the United Kingdom has emerged as a beneficiary, attracting more Indian students amid these changes. Countries like Australia have also placed limits on student numbers, further affecting the flow.
This shift in preferences reflects broader global dynamics. Indian students once chased foreign degrees as symbols of opportunity and prestige. Now, with rising hurdles and uncertainties, many are rethinking the value and feasibility of overseas education.
The affection for ‘vilayati degree’ is facing real challenges. The numbers and policies tell a story of changing times, one where Indian students are cautiously reassessing their choices in a complex and often restrictive international education landscape.