Market intelligence for international student recruitment from ICEF
6th Jun 2012

How will the Indian rupee’s slide affect your recruitment strategy?

“I am suffering for non-academic reasons. Had I done the course a year earlier, I would have paid some 20% less than now.”

— Natasha Kumar, Indian student worrying about her plans to study at Nanyang Technology University (NTU) in Singapore, quoted by the industry news site Overseas Overwhelmed

Kumar’s concerns are being felt by the hundreds of thousands of Indian students hoping to study in overseas institutions in the near future or already in courses. The reason? The rupee’s rapid and continuing slide against the US dollar; it depreciated by 6.51% in May alone and has fallen by more than 23% in the past year. Of course this is problematic for Indian students set on studying abroad. A choice to study in an overseas institution is always expensive, but a huge volume of Indian students have nevertheless paid in full in institutions around the world: in 2010–11, it’s estimated that 103,895 Indian students studied in the US, 27,000+ studied in Australia, and 12,000 studied in Canada. The rupee’s declining value will, at the very least, cause students to think long and hard about where they choose to study and to carefully evaluate the affordability of their study options. Amit Agnihotri, director of MBAUniverse.com, commented to Overseas Overwhelmed: “It may not affect the Ivy Leagues because of their pedigree but it will certainly hamper tier-II foreign colleges that get the bulk of the Indian students.” The reason for the rupee’s fall is linked to the Euro financial crisis, which has caused investors to sell the euro and buy more US dollars, leading to all major currencies’ depreciation against the dollar. The rupee was affected more than most other currencies due to problems in the Indian domestic economy: sluggish economic reforms and increasing current and fiscal deficits. "The rupee will be under pressure for the next six to nine months," predicts Manoj Vohra, director, Asia-Pacific, at Economist Intelligence Unit (EIU), to India’s Business Today.

Rupee’s fall creates opportunities as well as challenges

If some institutions and even country markets stand to lose from Indian students’ greater caution, others stand to gain. Price-sensitive Indian students may not abandon their plans to study overseas but may choose less costly options and/or courses where they have an opportunity to work. The other positive factor is Indian students’ unabated appetite for study abroad. As Anahita Sahni, who wants to study management in Singapore told The Times of India:

"Getting admission to good Indian colleges is becoming very difficult. Last year, Delhi University announced a 100% cut-off. With such high cut-off marks, it gets impossible to secure a seat. Like me, many of my friends are planning to study abroad."

The rupee will at some point stop its decline. In the meantime, how will your institution approach the situation? Will it adopt new pricing policies for Indian students, such as discounting, financial aid or staggered payment terms? How will it affect your strategies regarding recruiting students from India? Sources: Overseas Overwhelmed, Business Today, The Times of India, Toonari Post, Mint

Most Recent

  • US Office of Management and Budget grants budget reprieve to key exchange programmes Read More
  • Canada: How is study permit processing taking shape this year? Read More
  • UK study visa grants strengthening in first half of 2025 Read More

Most Popular

  • Which countries will contribute the most to global student mobility in 2030? Read More
  • Research shows link between study abroad and poverty alleviation  Read More
  • Beyond the Big Four: How demand for study abroad is shifting to destinations in Asia and Europe Read More

Because you found this article interesting

US Office of Management and Budget grants budget reprieve to key exchange programmes In a highly unusual intervention in an area of Congressional authority, the US Office of Management and Budget...
Read more
Canada: How is study permit processing taking shape this year? There are two important and recurring themes in our conversations with education agents over the last few months...
Read more
UK study visa grants strengthening in first half of 2025 A 21 August 2025 data release from the UK Home Office shows that student visa grants were up...
Read more
Asian destinations show their strength in latest ranking of student cities The QS Best Student Cities 2026 rankings were released last month, and, for the first time ever, Seoul...
Read more
Students are switching to AI for search. Are you ready? The early research is in and recent studies are pointing to a broad trend in that AI tools...
Read more
Many foreign students want to stay in Germany but need more help with the transition to life after study Early findings from an extensive survey of international students in Germany finds that two-thirds would like to stay...
Read more
How post-study work rights can make or break the return on investment for study abroad The following is a guest post contributed by Tim O’Brien and Claire Clifford from INTO University Partnerships, where...
Read more
Australia prioritises amendments to ESOS Act in legislative agenda The Australian government has signalled that amendments to the Education Services for Overseas Students (ESOS) Act 2000 are back...
Read more
What are you looking for?
Quick Links