Tight visa norms in the US, Canada, and Australia push Indian students towards the UK
Remittances by Indians for overseas education fell sharply to a five-year low of $138.8 million in June 2025, as multiple countries tightened restrictions on student visas and enrolments. The figure is less than half of the $314 million average over the past five years and significantly below the $718 million peak in September 2021, reported timesofindia.indiatimes.com.
Travel remittances remain strong at over $1 billion, but overall outward remittances dropped to $2.1 billion in June — the lowest since February 2025.
According to Hariprasad MP, Executive Director & Business Head of Ebix World Money, student remittances to the US have dropped nearly 30% compared to last year, largely due to stricter visa policies. Canada has also seen a notable decline, while the UK has emerged as the biggest gainer
In 2025, countries including Australia, Canada, the US, and the UK rolled out tougher rules on visas and enrolments, limiting the number of Indian students they would admit. Australia and Canada, in particular, have been rejecting applications from specific geographies, further dampening the demand.
Despite the dip in education-related spending, travel continues to account for a major chunk of outward remittances, with spending levels remaining above the five-year average.
