In fresh pounding, Rupee hits 100 against GBP

The UK pound for the first time breached the 100 mark - making it the first currency to hit a century maintaining its edge over the greenback. Although there is hardly any foreign trade denominated in UK pound, the appreciation in the British currency affects Indian travelling to the country particularly students and tourists. The sharp rise in the cost of living in UK has already impacted plans of students who are now looking at other countries. Germany, France and Australia are showing an increase in the number of Indian students. Travel from India could also get hit following a decision by UK to go ahead with requiring "high risk" Indian travelers to provide a GBP 3000 Visa bond. According to data collated by non-life insurer ICICI Lombard General Insurance, the number of students travelling to UK for long-term education in FY13 has fallen by a third as compared to the previous year. Students travelling to the UK accounted for close to 15% of all overseas students in FY12. But in FY13 a little over 10.4% of students chose the UK as a destination for education. The US continues to be the most preferred destination by students accounting for over 63% of the students who travel abroad for studies. But the number of students has fallen 2.28% in FY13 compared to the previous year. The trend is based on the number of students travel insuranceplan sold by ICICI Lombard General Insurance, which is the largest private insurer and has a sizeable market in overseas travel business. According to Sanjay Datta, head of underwriting & claims, at ICICI Lombard General Insurance, the sharp depreciation in the value of dollar and pound may deter tourists and students from going to these countries. "They may not go to these destinations (UK& US) but they will go to other places as Indians place a lot of importance on education." "We are seeing a significant increase in the number of students going to Australia, France, Germany and Spain where prices are relatively lower. We find that awareness is picking up very fast as these days even one student travelling to a new destination is able to influence several others through social networks," said Amit Bhandari, vice president, health- underwriting and claims. According to OECD data, Asians account for 52% of international students, with China, India and Korea accounting for bulk of international students. Among education centres, Australia, Austria, Luxembourg, New Zealand, Switzerland and UK have the highest percentages of international students among their tertiary students. India is estimated to have well over two lakh students abroad and most of them have traditionally been in English speaking countries -US, UK, Australia, New Zealand and Canada. Mayur Shetty August 21, 2013 http://timesofindia.indiatimes.com/business/india-business/In-fresh-pounding-Rupee-hits-100-against-GBP/articleshow/21948315.cms