For years, the United States was the first choice for Indian students dreaming of studying abroad. But that is slowly changing. A growing number of students are now looking at countries across Europe instead, driven by lower education costs, better job opportunities after graduation, and changing immigration policies in traditional destinations like the US, Canada, Australia and the UK.
The shift has become more noticeable after India and the European Union signed a trade agreement earlier this year that aims to make it easier for Indian students and skilled professionals to study, work and move across Europe.
Government data, cited by Reuters, shows that fewer Indians are heading overseas for higher studies than before. Around 626,000 Indian students went abroad in 2025, down from more than 908,000 in 2023.
Education experts say rising tuition fees, stricter visa rules and uncertainty around immigration policies are making students rethink their plans.
EU has become leading destination for Indian students
Speaking to Reuters, education consultants said Europe is no longer being seen as a backup option. Instead, many students are choosing European universities first because they offer quality education at a much lower cost.
According to education consultancy KC Overseas, tuition fees in many European countries are 50% to 80% lower than those in the United States. Living expenses are also generally lower, making Europe far more affordable for middle-class Indian families.
Students are also attracted by the chance to work after completing their degrees, easier movement within European countries, and the growing number of master’s courses taught entirely in English.
An EU official told Reuters that Indian students have become an important part of European universities. “The European Union has become a leading destination for Indian students.”
The official added that Indian students bring research talent, innovation and entrepreneurship while strengthening ties between India and Europe in areas such as trade, diplomacy and technology.
India-EU trade deal opens new doors
Education experts believe the India-EU trade agreement signed in January has played a major role in changing student preferences.
One of the major purposes of the agreement was to simplify visa procedures, improve recognition of Indian qualifications, create clearer pathways for students to work after graduation and make it easier for skilled professionals to move across Europe.
Over the next five years, India and the EU also plan to work on social security agreements with member countries. A technology-focused office will be created to guide Indian students and professionals interested in Europe.
Calling it a major shift, Leap co-founder Arnav Kumar said: “For the first time, a major economic bloc is saying, ‘We want Indian talent at scale’.”
He added that until now, Indian students had been moving to Europe without any common framework. “Indian students have been growing in Europe without any overarching framework. Now, we have structured pathways from education to employment.”
Kumar expects student and skilled worker movement between India and Europe to rise by 60% to 70% over the next three to five years if the agreement is implemented smoothly.
Students are choosing countries based on careers
Instead of simply picking one country, Indian students are now matching destinations with their career goals.
Consultants say Germany has become a preferred choice for engineering because of its strong manufacturing industry. The Netherlands is attracting students looking for a better work-life balance. Portugal is drawing those interested in affordable postgraduate research, while France is becoming popular for management studies.
Europe Study Centre director Sivaraman Pandian said enquiries at his consultancy have increased by 25% to 30% since the India-EU deal.
He described Europe as the “red-hot destination” for families discouraged by expensive education and tougher visa rules in other countries.
According to government data, more than 121,000 Indian students are currently studying across the European Union. Although that is still about half the number studying in the United States, Europe’s popularity has continued to grow steadily.
US immigration rules add to the shift
While Europe is making itself more attractive, the United States has become a more uncertain destination for many students.
After Donald Trump returned to office in January 2025, his administration introduced tougher immigration measures. Last week, Washington also announced plans to tighten the duration of visas issued to foreign students as part of a broader immigration crackdown.
Education consultants say these changes, along with rising education costs, have made many Indian families reconsider whether studying in the US remains the best option.
Europe still comes with challenges
Despite the growing interest, experts warn that studying in Europe is not without difficulties. Pandian advised students not to assume that a degree automatically guarantees employment. “If somebody says you will get a job in this country, don’t blindly believe it. Just because you studied in that country, it does not entitle you to get a job.”
He added: “You study, and you develop a skill-set; your doors are open.”
Early numbers show Europe’s popularity is rising
Recent enrolment figures shared by Reuters suggest that growing interest is already translating into higher student numbers.
In the Netherlands, the number of Indian students increased from 2,630 in the 2018-19 academic year to around 3,700 in 2025-26, making Indians the country’s third-largest group of non-EU students, according to Statistics Netherlands.
At Eindhoven University of Technology, pre-enrolments from Indian students for the upcoming academic year have risen to about 2,140, compared with around 1,390 a year earlier.
Leiden University has also seen a sharp rise in Indian admissions to its regular master’s programmes, with intake increasing from 70 students in 2021 to 120 this year.
Italy’s University of Padua said its partner agencies in India are reporting increasing interest in European universities, including from regions where students traditionally preferred American institutions.
Whether this trend continues will largely depend on how effectively the India-EU agreement is implemented in the coming years.
For many families, however, perceptions have already begun to change.