A growing trend among people in India is the pursuit of settling abroad, particularly in the Schengen countries, the United Kingdom, and Canada. Many individuals are either planning to move overseas or have already made the transition.

However, a substantial number of visa applications from India are not approved. Recent data indicates that the Schengen nations and the UK collectively earn millions of dollars from these rejected visa applications, presenting significant challenges for applicants, especially those from low-income countries.

A recent report estimates that denied visa applications to the UK and Schengen nations generate a combined revenue of approximately $200 million. This revenue stream is often referred to as “reverse remittance.”

According to EU Observer, the European Union earned about $139 million from application fees for rejected visas last year. Similarly, the UK amassed up to $56 million in 2023 from rejected visa applications.

Visa application fees for these countries are generally non-refundable, meaning individuals whose applications are rejected must bear the costs without receiving much, if any, benefit in return.

An official from Lago Collective pointed out that most rejected visa applicants come from low- and middle-income countries, primarily in Asia and Africa. Essentially, this process transfers money from poorer countries to wealthier ones.

Lago Collective stated, “These costs are just the tip of the iceberg: in most cases, applicants pay more than the basic application fee, with private agencies involved in processing visa applications and brokers providing additional services. The costs of not being able to travel for business and leisure also result in significant losses for all those involved,” as reported by The Dawn.

In 2024, the application fees for traveling to the EU have increased, rising from €80 to €90 per person aged 12 and above, and from €40 to €45 for children aged six to 11.

Many individuals express frustration over the often vague and unclear reasons for visa rejections. Even after addressing previous issues and reapplying, new grounds for rejection are frequently cited. Reports indicate that Pakistanis alone spent $5.7 million on UK visa applications that were ultimately rejected.