The recent sharp fall of the Indian rupee against the US dollar has once again drawn attention to the rising cost of studying abroad. As the rupee crossed 90 per dollar, Edelweiss MD and CEO Radhika Gupta sparked an important discussion: how expensive can foreign education become in the long run? She says that while predicting the future value of the rupee is impossible, planning for such a major expense is essential.
Rupee depreciation makes foreign education costlier
Radhika Gupta explained that as soon as the rupee touched 90, she began receiving many messages about her earlier estimate—an education cost of Rs 10 crore. She clarified that this figure is not a prediction but a planning assumption. In her view, families should prepare for an average long-term depreciation of 2–4 percent every year. India sometimes allows a weaker rupee to support exports, which means the currency may continue to lose value slowly over time.
Why does studying abroad become so expensive?
According to Gupta, the cost of studying in another country is not limited to tuition fees. Students also pay for accommodation, food, travel, health insurance, books, technology, and various day-to-day expenses—all of which are priced in dollars. When the rupee weakens and education inflation rises each year, the total cost escalates dramatically.
For example, a US university degree that costs around Rs 25 lakh today could cost nearly Rs 1 crore (10 million) or even Rs 10 crore (100 million) after 15–16 years, depending on inflation and currency movement.
Radhika Gupta’s calculation
She earlier revealed that she is planning to save around Rs 8–10 crore for her son’s future education. Her estimate: the current cost of an American university degree is about Rs 25 lakh. If education costs rise at 5 percent per year and the rupee depreciates 4 percent annually, the same degree could cost close to Rs 10 crore after 16 years.
Why you should consider investing in global assets
Gupta says that while we cannot predict currency movements, we can prepare for them. She recommends that Indian families investing for a future USD-denominated expense—such as studying abroad—should diversify into international assets. Relying solely on rupee investments for a future dollar-based cost exposes families to financial risk.
