The Indian rupee's significant depreciation has fundamentally reshaped overseas education planning for Indian students. According to reports from Business Standard, the rupee has weakened from the mid-to-high 80s per US dollar to the mid-to-high 90s over the past year, alongside similar depreciation against the pound and euro. Study abroad consultancies report that effective costs for Indian students have increased by 10-12% compared to a year ago, driven by currency depreciation and rising living costs. Saurabh Arora, founder and CEO of University Living, estimates the cost burden for Indian families has risen 15-25% over the past two to three years, compounded by visa fee increases and accommodation inflation.
The currency impact is reflected in official remittance data from the Reserve Bank of India's Liberalised Remittance Scheme. As reported by Business Standard, outward remittances fell nearly 2% year-on-year to $28.98 billion in 2025-26, while overseas education-related remittances declined 5.2% to $151.71 million, indicating softer spending on education abroad. Ritika Gupta, founder and CEO of Aaera, noted a rise in students postponing semesters by one full term or completely reconsidering their choices, particularly for traditional destinations like the US, UK, Canada and Australia.
Platform data from GradRight reveals a dramatic shift in student preferences as reported by Business Standard. Germany emerged as the strongest gainer with student preference rising 73% between January-May 2025 and January-May 2026, while Canada saw interest fall 33%, the UK 15%, and the US 18%. Germany is now saving Indian students ₹52-92 lakh in upfront costs compared to the US, with Lovish Rawal from GradRight noting that the US is increasingly becoming "an aspirational second choice rather than a committed Plan A." Students are also shifting toward lower-cost destinations like Ireland, Dubai, Singapore, and parts of Europe due to lower tuition and living costs.
The rupee depreciation has created a significant shift in course preferences among Indian students. According to GradRight data reported by Business Standard, preferences for Finance fell 82%, Business Administration 86%, Supply Chain 88%, and Engineering Management 92% between January-May 2025 and January-May 2026. These are predominantly US-tied programmes that are the most rupee-sensitive choices at ₹95 per dollar. In contrast, Computer Science declined 22% but remained relatively resilient, while Data Science surged 170%, as students concentrate their study abroad intent into tech and AI fields where salary payoff justifies the rupee cost.
The currency impact is changing how students approach financing and planning for overseas education. As reported by Business Standard, the number of inquiries regarding loan options, scholarship opportunities and financial aid programmes was approximately 25-35% higher than last year. Families are beginning loan and financial planning discussions 12-18 months earlier than before, while more students are deferring plans by one to two years to rebuild savings buffers. Students are also changing where they live abroad, with growing preference for smaller cities with lower rental and daily expenses, while avoiding premium metropolitan locations.
