Forex outgo on students tops $2 billion
15 Jul 2009
Over $2 billion worth of foreign exchange flowed out of the country by way of remittance towards tuition fees and other expenses by Indian students in 2008-09 - a near 100 per cent rise from around $1.1 billion in 2006-07, when it stood at $1.1 billion, minister of state for finance Namo Narain Meena informed the Rajya Sabha on Tuesday.
On a specific question on Australia, Meena stated that that as of 31 March, there were 81,690 Indians in Australia holding a student visa.
He said as per partially revised figures, $2.247 billion went out as remittance towards education-related payments in 2008-09. He clarified that a country-wise break-up of forex outflow in terms of overseas students' tuition fees and expenses is not maintained.
As per the provisional figure for 2007-08, $2.827 billion went out as remittance towards tuition fee and other expenses. There has been a steady increase in forex outflow on account of education since 2004-05 when it was $642 million. The next year, in 2005-06, it doubled to $1.11 billion.
Meena said remittance towards tuition fees is a current account transaction and the Reserve Bank of India has delegated the powers to authorised dealers to allow remittances towards tuition fees without needing its prior approval.