The latest data from the Reserve Bank of India (RBI) reveals a staggering trend in Indians’ remittances for education, with a massive surge in outflows over the last decade. According to the RBI, Indians have sent a total of Rs 1.76 lakh crore abroad for education purposes between 2014 and 2024.
Remittance Trends: A Growing Concern
The data highlights a significant increase in remittances over the years, with 2023-24 witnessing the highest outflow at Rs 29,171 crore. This represents a staggering growth of nearly 1200% from the decade’s lowest point in 2014, when annual remittances stood at just Rs 2,429 crore.
Impact on Education Sector
The sheer scale of these remittances raises important questions about India’s higher education sector. While the government has increased its allocation to the Department of Higher Education, with a significant jump from Rs 46,482.35 crore in 2024-25 to Rs 50,077.95 crore in 2025-26, it is overshadowed by what Indians spend on overseas education.
For instance, last year alone, students remitted over Rs 29,000 crore abroad for studies, and over the past decade, the total has touched Rs 1.76 lakh crore – more than three times the government’s entire annual higher education budget.
Educational Institutions: A Critical Analysis
The massive sums of money being sent abroad by Indians have significant implications for domestic educational institutions. With the cost of setting up an Indian Institute of Technology (IIT) estimated at around Rs 1,750 crore in 2014 (rising to Rs 2,823 crore after adjusting for inflation), the remittances could have funded over 62 IITs over the decade.
Furthermore, the data underscores the scale of Indians spending on overseas education and raises questions about domestic capacity and quality in higher education. The RBI’s figures also highlight a significant increase in education-related transactions, with over 9.43 lakh transactions recorded in 2023-24 alone.
Government Response: A Mixed Bag
When asked about the number of education-related remittance transactions and potential losses incurred by Indian families due to exchange rate markups or hidden charges levied by banks, the RBI replied that such information was not available. However, the government’s allocation to the Department of Higher Education has increased significantly, with a 8% jump in 2025-26.
The data also reveals a decline in the number of Indians travelling abroad for studies in 2024, down by 15% due to tightened visa regulations worldwide. Despite this, the 2024 tally remains well above the pre-pandemic level of 2019.
Key Takeaways and Implications
The RBI’s data provides a comprehensive picture of India’s remittances for education purposes over the last decade. As the country continues to grapple with the implications of this trend, policymakers must carefully consider strategies to enhance domestic capacity and quality in higher education.
Ultimately, the scale of these remittances highlights the pressing need for sustainable solutions that balance India’s growing demand for high-quality education with the need to develop its own institutions.
Source: India Today
