Foreign education costs for Indian families may double to $91 bn by 2030

Indian families might lose up to $500 million in bank fees, according to a report that flagged rising costs, tougher visa norms, and shift to affordable study destinations

Indian families might have to spend as much as $91 billion on foreign education by 2030, up from $44 billion in 2024, according to The Indian Express, citing a report highlighting a growing concern wherein families could lose nearly half a billion dollars in hidden fees and exchange rate markups while transferring money through traditional banking channels.

 

The report by Wise and Redseer Strategy Consultants reveals that approximately $11 billion of the total spending in 2024 came from money transferred directly from India. Over 95 per cent of these remittances were sent via conventional banks, which charge a 3-3.5 per cent markup on exchange rates.

 

 

“A typical family sending ₹30 lakh annually may lose ₹60,000-₹75,000 to hidden markups, enough to cover several months of living expenses or fund additional courses,” the report stated. With around 760,000 Indian students going abroad, these losses totalled $200 million (₹1,700 crore) in 2024 alone.   

 

RBI's focus on lowering costs

 

The Reserve Bank of India (RBI) has been working to reduce the cost of international transfers. According to the World Bank data, the average global cost of sending remittances stood at 6.62 per cent in July-September 2024, The Indian Express reported.

 

Multiple intermediaries involved in international payments drive up both costs and delays. These challenges have prompted central banks, including the RBI, to explore digital currencies and promote instant payment linkages like India’s UPI. This week, the National Payments Corporation of India expanded the UPI-Singapore PayNow system by adding 13 more Indian banks, increasing the total to 19.

 

Drop in outflows for education

 

Recent RBI data shows a decline in money sent abroad under the Liberalised Remittance Scheme (LRS). In April 2025, remittances for overseas education fell 21 per cent year-on-year to $164 million. For the first four months of 2025, the total dropped to $874 million, marking the ninth straight month of decline.

 

Under LRS, Indians are allowed to remit up to $250,000 annually for various purposes, including education, travel, and investment.

 

Rise in student numbers despite visa hurdles

 

Despite these trends, the number of Indian students abroad is projected to cross 2.5 million by 2030. In 2024, Indians represented nearly one-third of all international students in countries like the US, UK, Canada, and Australia — a sharp rise from 11 per cent a decade ago, the Inews report said.

 

While these traditional destinations remain popular, tighter visa and admission policies are pushing students to consider new countries. For instance, Canada raised the required proof of living expenses, and Australia increased the minimum IELTS scores.

 

As restrictions rise in traditional hubs, countries like Germany, Ireland, and New Zealand are emerging as attractive options. These nations offer simplified visa processes, better post-study work options, and more relaxed residency rules.