Pragati Priya, a 29‑year‑old content creator from Jharkhand, is set to attend a master’s in global economic affairs in Rome this September. She hopes the programme will open doors in Europe, but the steep decline of the rupee against the euro means she must now borrow more than before to cover tuition that previously seemed affordable.
India now supplies more than 1.2 million higher‑education students abroad, overtaking China as the largest source of international learners. Yet a depreciating currency, bleak job prospects in the US and Europe and stricter visa accreditation have roped many of them back to the home country. Recent surveys show a 20% fall in UK enrolments and almost 7% decline in US intake over the last year.
The rupee’s decline is compounded by the fact that international students who have already paid part of their fees need to refinance loans to cover later instalments. From 2019 to 2024, it has fallen 35‑47% against major study destinations, eroding the value of funds used to pay tuition and living costs overseas.
The Global Student Flows Report 2026 forecasts an average decline of 0.5% across the US, UK, Canada and Australia for the next few years, but shows rising interest in Germany, Ireland, Italy and other European nations. These countries offer lower tuition, shorter study periods, and more favourable post‑study work pathways that appeal to cost‑conscious Indian families.
Industry voices warn that the combined effect of a weak rupee, tightened immigration, and a challenging job market creates a “perfect storm” for both universities and the students they host. For the US and the UK, which have built soft‑power through international education, the trend could undermine their soft‑power and economic influence.
