Indian students are reevaluating their study abroad choices, particularly regarding major destinations like the US, UK, and Canada. The decision to study abroad is increasingly influenced by stricter immigration laws, rising costs, and uncertain job prospects in most of these countries.
A report titled PRAYAS, Promoting Regular and Assisted Migration for Youth and Skilled Professionals, indicates a shift towards Germany, France, and other European countries, while highlighting ongoing financial challenges such as education loans and unregulated consultants.
Where Students Are Going, And Where They’re Pulling Back From
Indian students have traditionally favoured universities in the United States, the United Kingdom, Canada and Australia. Up to 2022, these English-speaking countries hosted the bulk of Indian international students. However, 2024 saw a sharp downturn in Indian student flows to the top Western destinations. According to India’s Bureau of Immigration data, the number of Indians going for higher studies fell 15 per cent in 2024, from 8.93 lakh in 2023 to 7.59 lakh in 2024.
The drop was most pronounced for Canada, the United Kingdom and the United States. The hardest-hit – Indian student enrolments in Canada plunged 41 per cent in one year, from 233,532 in 2023 down to 137,608 in 2024. According to recent data from IRCC, 70% fewer arrivals have been seen between January and May 2026, compared to the same period in 2024, down by 225,335.
Factors include Canada’s stricter visa and permit rules and diplomatic tensions. In 2023, amid India– Canada political rifts, Canada capped study permits and tightened visa scrutiny, creating uncertainty for applicants. Many Indian students (especially in private colleges) faced delays or denials, reflecting these new policies
Indian student visas to the United Kingdom fell about 27 per cent in 2024 (from 1.36 lakh to 98,000). The United Kingdom Government’s mid-2023 rule change, banning most foreign master’s students from bringing dependents, likely deterred many, as did stricter post-study work conditions.
The United States remained the largest host of Indian students (with 331,600 Indian students in 2023-24, per Open Doors data). But new Indian enrolments also dipped 13 per cent in 2024. Tighter visa vetting, high cost of education in the United States (especially with a weaker rupee), and concerns about work visa lotteries have led to caution.
The changing immigration rules in 2025-26 are further adding to students’ concerns. Indian students are probably giving up on their plans to stay in the US after completing their studies, and the data backs it up.
The report mentions data until 2024. However, in 2025 and also this year, all of the top countries have reported a decrease in the number of international students arriving and student visas being issued.
New Destinations
In their place, alternative destinations are booming. Germany, France, and smaller European countries like Ireland, Sweden, and Finland have all recorded rising numbers of Indian students, drawn by low or no tuition fees and generous post-study work options.
Germany is a standout; Indian student enrolments in Germany jumped 34–42 per cent recently, making Indians the largest group of foreign students there (49,000 in 2023/24). Programmes taught in English and robust post-study work options (18-month job search visas) help.
“What works in Germany’s favour is the balance it offers between academic quality, relatively affordable education and structured career pathways. Its industry-aligned education system, particularly in fields such as engineering, technology and applied sciences, attracts students looking for practical and career-oriented learning,” says Saurabh Arora, Founder & CEO, University Living.
At the same time, structured post-study work opportunities are giving students greater confidence in their long-term prospects. Students are increasingly evaluating not only where they can study, but also where they can develop the skills and experience required to build sustainable careers,” adds Arora.
France also saw nearly 25 per cent growth in Indian students, aided by active recruitment initiatives. (Smaller European nations like Ireland, Sweden/Finland, Austria, Italy and Spain have all reported rising numbers of Indian students, drawn by lower costs and simplified visas.
Even Russia, traditionally popular for medical education, saw a 30 per cent increase in Indian students in 2024, despite geopolitical issues, due to affordable fees and available seats in medical programmes
New Zealand saw a 38 per cent rise, while countries like Bangladesh and Uzbekistan, mainly for medical education, saw student numbers jump 43 per cent and 50 per cent respectively.
How Students Are Paying For It, And What It’s Costing Them
Money remains the single biggest hurdle for Indian students wanting to study abroad. The report finds that family savings and education loans dominate financing, with over half of Punjab’s students borrowing, often against family property, to fund overseas education. Hidden costs, including consultancy fees, visa charges, and test preparation, can push up pre-departure expenses by as much as 66 per cent for students headed to Western countries.
Scholarships remain badly underused. Only 42 per cent of eligible students in Andhra Pradesh accessed available scholarships, mainly due to poor awareness. Education consultants play an outsized role in decision-making, used by 41 per cent of students in Andhra Pradesh, though the report flags that some consultants overpromise outcomes, and the sector remains largely unregulated, exposing students to fraud, including scams involving fake Canadian admission letters.
Once abroad, the pressure doesn’t ease. High living costs, limited permitted work hours, and a lack of social networks leave many students isolated and financially stretched. Tight post-study work rules in some countries also make the transition from graduation to employment difficult.
The report was jointly developed by the International Organization for Migration (IOM) India, the Ministry of External Affairs (MEA), and the Indian Council of World Affairs (ICWA). The report attempts to capture the aspirations, decision-making, and challenges facing Indians who want to go abroad.
The findings, while described by the report as directional rather than statistically representative, offer some of the most granular insight yet into how ordinary Indians actually plan, finance, and experience migration, and where the system is failing them.
Disclaimer: This article is intended for general awareness only and does not constitute legal, immigration, or financial advice. Migration policies, visa rules, and financial requirements referenced in this article are subject to change and may vary by destination country, institution, and individual circumstances. Readers considering migration for study should verify current requirements directly with relevant authorities, education consultants, or immigration experts before making financial commitments.