Why Fewer Indian Students Are Choosing the US, UK, and Canada for Higher Studies in 2025
Studying abroad has long symbolized ambition and global aspirations for Indian students. For decades, destinations like the United States, United Kingdom, Canada, and Australia topped the list of preferred countries. However, the overseas education landscape in 2025 is undergoing a seismic shift. Recent data reveals a sharp decline in student interest toward these traditional countries, with alternative destinations like Germany, Russia, and France witnessing a notable rise. This shift reflects a combination of economic pressures, policy changes, and evolving student priorities.
Sharp Decline in Traditional Study Abroad Destinations
According to government and education loan data, the number of Indian students pursuing education overseas fell by 15% in 2024—from 892,989 in 2023 to 759,064. The most significant drops were recorded in countries that have traditionally hosted large Indian student populations:
| Destination | 2023 Enrollment | 2024 Enrollment | % Decline |
|---|---|---|---|
| Canada | 233,532 | 137,608 | 41% |
| United States | 234,473 | 204,058 | 13% |
| United Kingdom | 136,921 | 98,890 | 28% |
| Australia | 78,093 | 68,572 | 12.4% |
Additionally, education loan applications between March and May 2024 saw a 22% decline compared to the same period in 2023. States like Telangana (-30%) and Gujarat (-35%) witnessed steeper drops, signaling a broader hesitance toward overseas education.
What’s Causing the Drop?
Multiple factors are influencing this shift:
- Job Market Saturation: Many students are finding it difficult to secure jobs abroad after graduation, particularly in non-STEM fields. Ankit Kumar, an MS graduate from the University of Texas at Dallas, shared that job hunting post-graduation is now tougher than ever, with tightening visa rules acting as a barrier.
- Tighter Visa Regulations: Canada has implemented caps on international student admissions. Australia recently doubled visa fees, while the UK has proposed new limits on dependent visas and overall student entries.
- Rising Costs: Increasing tuition fees, fluctuating exchange rates, and inflation in living expenses have made studying in Western countries significantly more expensive for the average Indian family.
- Immigration and Political Uncertainty: Anti-immigrant rhetoric, policy unpredictability, and higher visa rejection rates in countries like the US and UK are discouraging many students and parents.
Rise of New-Age Education Destinations
While traditional countries lose their grip, alternative nations are stepping up:
- Germany: Interest in studying in Germany rose by 99% in Punjab alone, driven by affordable or no tuition fees at public universities, strong engineering programs, and robust post-study work policies.
- Russia: The number of Indian students in Russia grew from 19,784 in 2022 to 31,444 in 2024, especially in the field of medicine, where seats are limited and expensive in India.
- France: The French government’s push for internationalization has paid off, with Indian student numbers rising from 6,406 in 2022 to 8,536 in 2024. Affordability and quality education in fields like business and fashion are attracting many.
- New Zealand: The country saw record growth due to relaxed visa rules and skill-based course offerings, making it a haven for students seeking practical career pathways.
Surge in Undergraduate Interest
Another key trend in 2025 is the growing interest in undergraduate studies abroad. Data shows:
- A 20% increase in the number of students taking ACT and SAT exams, especially among upper-middle-class families aiming for early global exposure.
- Regions like Punjab and Chandigarh recorded a 53.28% surge in ACT exam registrations, highlighting a shift from traditional postgraduate aspirations to undergraduate ambition.
What This Means for India
The changing education landscape presents both challenges and opportunities:
- Challenges: A decrease in international exposure may limit Indian students’ competitiveness in global job markets. Additionally, families and service providers dependent on the overseas education ecosystem may face financial strain.
- Opportunities: Indian universities now have the chance to enhance their global appeal. By collaborating with foreign institutions, offering dual-degree programs, and raising academic standards, domestic institutions can retain talent within India. Moreover, new destinations allow for diversification and reduce dependence on a few major countries.
What Lies Ahead
Unless visa regimes and political climates improve, the trend away from the US, UK, and Canada may persist in 2025 and beyond. However, the silver lining is the growing popularity of new destinations and the rising global competitiveness of Indian higher education. Government support through platforms like the Indian Community Welfare Fund and the MADAD Portal continues to provide safety nets for Indian students abroad.
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