Big drop in Indian students heading to the US
The number of Indian students going to the United States for higher studies fell sharply in August 2025 — down 44% compared with August 2024. This marks the steepest decline since the pandemic years and signals growing pressure on the traditional flow of students to US universities.
Why the decline is worrying
Several factors are likely combining to drive this fall, but the most immediate concern is the weakening rupee. When the rupee loses value against the dollar, the cost of tuition, living expenses and loan repayments in dollar terms rises for Indian families. That can quickly make US study plans unaffordable for many.
- Higher costs: A weaker local currency raises the effective price of programs priced in dollars.
- Budget pressure: Inflation and tighter household finances leave less room for expensive overseas education.
- Competitive alternatives: Countries offering cheaper study options or easier work-permit rules may attract students who would otherwise choose the US.
How the falling rupee amplifies the problem
The rupee’s slide does two things at once: it increases immediate outflows in rupee terms and raises the future burden of any dollar-denominated loans. Even modest currency moves can push a previously viable plan over the edge.
Example: tuition and living costs that were manageable last year may now consume a larger share of household income, reducing the pool of students who can realistically pursue study abroad.
Short-term outlook
If the rupee remains weak, the decline in numbers could deepen. Universities and recruiters should expect continued sensitivity to pricing and currency risk among Indian applicants.
What universities and students can do
- Universities: Consider more targeted scholarships, staggered payment plans, and partnerships with Indian institutions to lower upfront costs.
- Recruiters: Emphasize programs with strong return-on-investment, internships and on-campus work options that offset costs.
- Students and families: Explore alternative destinations, short-term exchange programs, remote learning options, and scholarship opportunities. Factor currency risk into loan and budgeting decisions.
Bottom line
The 44% drop in August 2025 is a clear signal that cost and currency dynamics are reshaping study-abroad decisions. Without relief — either from a stronger rupee or more affordable options — the flow of Indian students to the US may face further contraction in the months ahead.