Indian students abroad: Numbers fall after three-year surge

The number of Indian students pursuing higher studies abroad has declined for the first time in three years, according to data from Ministry of External Affairs (MEA) released to the Indian parliament.

The data showed 1.882 million Indian students are currently studying in 153 countries – an impressive number at first glance, but a closer look reveals significant shifts in expectations, global opportunities, and constraints that are changing the pattern of overseas study among Indian students.

Of the total number of outbound students, 1.254 million are enrolled in universities and other major institutions.

In 2024, 1.33 million Indian students were pursuing higher education abroad, which means the updated figure for 2025 represents a drop of about 76,000 students this year. The decline is considered noteworthy, as it ends a three-year period of consistent growth that began in 2022.

The distribution of students across countries shows interesting trends. Canada, with about 427,000 Indian students in total (across all years of study), and the United States, with about 255,000, emerged as the top destinations.

Canada: Still a preferred destination

MEA data for the end of 2025 showed that Canada remained the most preferred destination for Indian higher education students, even though new policies, resulting in increased scrutiny, visa rejections, and new financial requirements, have impacted the number of study permits issued to Indian students year-on-year.

Canada is followed in popularity by the US and the United Kingdom. Australia, Germany, Russia, Georgia, and Kyrgyzstan also remain important destinations.

The fall in overseas higher education enrolment since 2024 reflects deeper shifts, pointing to policy disruptions, economic challenges, and changing global priorities.

“The 6.1% enrolment contraction represents market correction following exceptional growth rather than systemic retreat from international education,” Maria Mathai, founder of MM Advisory Services, told University World News.

“Major English-speaking destinations maintain structural advantages that alternative destinations cannot yet replicate at [a] comparable scale,” she said.

Tamil Nadu-based Truematics Overseas Education Managing Director R Suresh Kumar told University World News: “Based on last year’s data, we can clearly see that student demand has declined.

“The primary reason is the visa and immigration changes introduced by the US, followed by similar developments in Canada. Parents are worried, and many are waiting for the situation in the US to stabilise before making a decision.

“Some students are exploring alternative destinations such as France, Germany, the Netherlands, Sweden, Ireland, and Asian countries like Dubai and Singapore. These countries are seeing more enquiries, but they still cannot match the scale of the US or the UK.

“Australia remains relatively stable in our region, but the overall uncertainty in major destinations has contributed to this year’s decline. We expect the situation to improve by 2026, but for now it’s difficult to predict exact numbers,” he added.

Policy changes

Between 2022 and 2024, Indian students travelled abroad in record numbers, encouraged by promising post-study work policies, exposure to international experiences, and long-term migration prospects. However, this was followed by a tightening of visa regulations and migration policies in popular destinations in 2025.

Canada implemented stricter checks and increased rejection rates. It also imposed caps on international student numbers, ostensibly due to increased housing pressure said to be caused by large numbers of international students.

The UK limited the ability of foreign students to bring dependants – spouses and children, and shortened the duration of post-study work visas – making them less attractive to postgraduate applicants.

Students aiming for the US struggled with reduced visa appointment availability, rising rejection rates, and stricter applicant scrutiny, forcing many to reconsider their plans. Australia also added stricter English language requirements and limited pathways to permanent residency.

“Canada’s Provincial Attestation requirements and enhanced financial thresholds, the UK’s dependant restrictions, Australia's Genuine Student requirements and financial increases, and ongoing H-1B (visa for skilled professionals) uncertainty in the US have all introduced greater selectivity,” Mathai noted.

“Yet Canada maintained enrolments at 427,085 while other major destinations saw modest declines, suggesting these measures successfully target pathway [destination] quality rather than rejecting qualified applicants. High-calibre, postgraduate-focused applicants continue to pursue Canada, the US and Germany in particular,” according to Mathai.

Increasing financial burden

Many students planning to study abroad and their parents said that in addition to policy barriers, the financial burden of studying abroad has also increased sharply.

“Tuition fees have risen in many countries, global inflation has increased the cost of living, and currency fluctuations have made studying in the US, UK, and Canada significantly more expensive for Indian families,” said Harish Goyal, a parent in New Delhi.

Goyal said his daughter plans to pursue a postgraduate course in Canada. But he noted that Canada’s significantly increased proof-of-funds requirements have made applications tougher for middle-class students.

Job prospects – a primary motivation for most Indian students – are also more uncertain. Competition for entry-level jobs in major countries, particularly the UK and US, has increased, making it difficult for international graduates to find work, education consultants noted.

Concerns about post-study opportunities have forced students to question whether the returns justify the higher investment.

Diplomatic tensions have also further impacted choices. Tensions between India and Canada – sparked in 2023 by Canada’s accusation of Indian government involvement in the murder in Canada of Sikh activist Hardeep Singh Nijjar – have caused anxiety, with many students expressing concerns about their personal safety, visa delays, and policy stability.

This uncertainty significantly impacted decision-making, especially for those considering long-term migration, consultants said.

As traditional destinations became less accessible or more expensive, Indian students in 2025 began exploring alternative educational avenues.

Germany has emerged as one of the most attractive options due to its low-cost education system, strong emphasis on technical fields, and good job environment. Interest has also increased in France, Ireland, the Netherlands, Russia, and even Eastern European countries, offering clarity in visa regulations, manageable living expenses, and good job opportunities.

Meanwhile, destination preferences within the ‘Big Four’ English-speaking countries have also shifted. Canada, once a top favourite, saw a significant decline following high rejection rates for Indian applicants in 2025.

Despite a strong start in early 2024, the US saw a sharp decline in new arrivals by mid-2025 due to increasing restrictions and rising expenses.

Interestingly, the UK picked up pace, becoming the preferred choice for many Indian students by 2025. Shorter courses, relatively low costs, free healthcare, and high visa acceptance rates helped the UK attract students who might have previously chosen North America, consultants said.