Following the depreciation of the rupee against most major Western currencies in 2011, observers are warning that Indian study abroad traffic could slow in 2012. However, agents who talked to the PIE remain confident. Following the depreciation of the rupee against most major Western currencies in 2011 – including an 18% fall against the dollar – reports this week warned that Indian study abroad traffic could wane in 2012. News that Indian banks are reigning in student loans over fears of a shrinking graduate job market has compounded the situation.
However, seven major Indian education agencies have told
The PIE that they are undaunted by the reports and that their businesses have not been affected. The majority said they were more concerned about changes to post-study work rights in major markets such as the UK.
“This is a temporary phenomenon. I went to the UK as an international student myself in 2005 and at that time the rupee was trading at almost as what it is now, so it’s not a major factor,” said Puneet Malhotra, director of Pinnacle Consultancy Services, which deals with the UK market. “I think it is the UKBA visa regime that is killing the market.”
Ganga Dandapani, Vice President Marketing at Canam Consultants, which sent more than 2,000 students to Canada last year, agreed. “The changing value of the dollar or pound can only be an additional factor, not the whole reason for a decline.
“Indian students are very keen on countries that offer them the opportunity to work after study, and the option to be able to live in that country.”
Agents said that other factors made an impending decline unlikely, such as the increased availability of scholarships at times of currency crisis, and degree start dates. “Most of the university intakes are around August. If it slides further by then, say by 25% to 30%, then yes it might affect business,” said Piyush Agrawal, Director of the AEC agency, which sends around 350 students to the UK and Singapore each year.
Agrawal added that the intrinsic importance of education for students made it less susceptible to currency fluctuations than industries such as tourism.
"It doesn’t really bother students”
“Average education fees in the UK are around £9,000 - £10,000. Even if the rupee falls, say 4% or 5%, that’s say, an extra 20th of the cost, so it doesn’t really bother students.”
India’s currency also fell against the pound (down 16.7%) and euro (12.5%) last year as living costs in those markets rose. With funding paths in India shrinking, M Narendra, chair and managing director of Indian Overseas Bank, said last week that many Indians could start looking
for cheaper education options at home at in 2012.
However, news that the rupee has begun to creep up in January (it is now INR 51 to the dollar compared to lows of 44 last June) may allay the worst fears. “This is only marginal and temporary,” said Sudhakaraiah Yeddula, CEO of national education agency EduChannel. “The dollar has slightly come down now, and the rupee is still 20-25% more than what it used to be.”
Following the depreciation of the rupee against most major Western currencies in 2011 – including an 18% fall against the dollar – reports this week warned that Indian study abroad traffic could wane in 2012. News that Indian banks are reigning in student loans over fears of a shrinking graduate job market has compounded the situation.
However, seven major Indian education agencies have told The PIE that they are undaunted by the reports and that their businesses have not been affected. The majority said they were more concerned about changes to post-study work rights in major markets such as the UK.
“This is a temporary phenomenon. I went to the UK as an international student myself in 2005 and at that time the rupee was trading at almost as what it is now, so it’s not a major factor,” said Puneet Malhotra, director of Pinnacle Consultancy Services, which deals with the UK market. “I think it is the UKBA visa regime that is killing the market.”
Ganga Dandapani, Vice President Marketing at Canam Consultants, which sent more than 2,000 students to Canada last year, agreed. “The changing value of the dollar or pound can only be an additional factor, not the whole reason for a decline.
“Indian students are very keen on countries that offer them the opportunity to work after study, and the option to be able to live in that country.”
Agents said that other factors made an impending decline unlikely, such as the increased availability of scholarships at times of currency crisis, and degree start dates. “Most of the university intakes are around August. If it slides further by then, say by 25% to 30%, then yes it might affect business,” said Piyush Agrawal, Director of the AEC agency, which sends around 350 students to the UK and Singapore each year.
Agrawal added that the intrinsic importance of education for students made it less susceptible to currency fluctuations than industries such as tourism.
“It doesn’t really bother students”
“Average education fees in the UK are around £9,000 – £10,000. Even if the rupee falls, say 4% or 5%, that’s say, an extra 20th of the cost, so it doesn’t really bother students.”
India’s currency also fell against the pound (down 16.7%) and euro (12.5%) last year as living costs in those markets rose. With funding paths in India shrinking, M Narendra, chair and managing director of Indian Overseas Bank, said last week that many Indians could start looking for cheaper education options at home at in 2012.
However, news that the rupee has begun to creep up in January (it is now INR 51 to the dollar compared to lows of 44 last June) may allay the worst fears. “This is only marginal and temporary,” said Sudhakaraiah Yeddula, CEO of national education agency EduChannel. “The dollar has slightly come down now, and the rupee is still 20-25% more than what it used to be.”
