How does the weakening rupee affect Indian students studying abroad, according to Sanjay Laul?

Sanjay Laul explains that a weaker rupee increases the effective cost of studying abroad, as tuition and living expenses paid in foreign currency require a larger rupee outlay.

Why are NRIs like Ritu Kant Ojha reassessing remittance timing?

NRIs are reassessing remittance timing because a weaker rupee increases their purchasing power in India, making Indian assets relatively cheaper in foreign currency terms.

What are global economic agencies projecting for the next couple of years?

Global economic agencies project continued uncertainty and slower growth through 2026, suggesting sustained currency volatility.

Home / Education / Rupee Woes: Indian Students Face Higher Overseas Education Costs

Rupee Woes: Indian Students Face Higher Overseas Education Costs

12 Jan

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Summary

Weakening rupee increases the cost of studying abroad for Indian families.
Proof-of-funds requirements now demand larger rupee balances for visas.
NRIs use stronger foreign earnings to buy Indian assets and prepay loans.

Rupee Woes: Indian Students Face Higher Overseas Education Costs

The fluctuating value of the Indian rupee is substantially increasing the cost of overseas education for Indian students. As the rupee weakens against major global currencies, the expenses for tuition and living abroad translate into a higher rupee outlay for families. This currency risk also extends to visa-related proof-of-funds requirements, compelling students to demonstrate larger rupee balances to cover expenses.

Despite the increased costs for outbound education, a depreciating rupee benefits Non-Resident Indians (NRIs) by enhancing the value of their foreign earnings when remitted to India. This has led some NRIs to accelerate their transfers, seeking to capitalize on favorable exchange rates. The additional rupee value received is often allocated towards loan prepayments and acquiring assets, thereby strengthening household balance sheets.