Until recently, Australia, Canada, the United Kingdom, and the United States—commonly known as the “big four” study destinations—were the primary choices for Indian students studying abroad. Together, these four countries attracted over 70% of Indian international students, offering them a range of academic opportunities, post-graduation work rights, and potential pathways to immigration.
While these destinations remain attractive, international students have faced growing challenges over the past year. These include difficulties obtaining study visas, bringing family members along, securing post-study work rights, affording tuition and living costs, obtaining permanent residency, and concerns over policy stability. These obstacles have not only affected Indian students but have made studying in these countries more difficult for many international students worldwide.
Indian students have been a vital enrollment source for many universities and colleges in these countries, often ranking as the first or second largest market. However, institutions are now grappling with significant drops in Indian student numbers.
According to Indian government data, the number of Indian students going abroad for degree studies in 2024 fell by nearly 15% compared to 2023, decreasing from 893,000 to 759,000. The declines by destination country (rounded to the nearest hundred) are stark:
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Canada: Down 41% from 233,500 to 137,600
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United Kingdom: Down 28% from 136,900 to 98,900
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United States: Down 13% from 234,500 to 204,000
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Australia: Down 12% from 78,100 to 68,600
Despite these declines, by 2024 the four countries still accounted for approximately 72% of all Indian students studying abroad.
Several factors contributed to this shift in 2025. Policy changes in Australia, Canada, and the UK, alongside growing concerns about immigration policies under former U.S. President Trump, have dampened demand for study opportunities in these traditional destinations. Additionally, the depreciation of the Indian rupee against the U.S. dollar has increased the cost of studying abroad. Sudarshan Motwani, CEO of BookMyForex.com, noted that even small currency fluctuations significantly raise annual student expenses, complicating financial planning.
Eela Dubey, co-founder of EduFund, explained that for Indian students, rupee depreciation acts as a form of “hidden inflation.” Even if universities maintain tuition fees in U.S. dollars, students ultimately pay more in rupees due to exchange rate shifts.
Maria Mathey, founder of MM Consulting Services, described the decline in outbound Indian students as a “market adjustment” rather than a collapse. She emphasized that students are pragmatically responding to rising costs and evolving visa regulations, with priorities shifting from university rankings to expected salaries and guaranteed work rights after graduation.
A recent report from the British Council supports this view, forecasting a probable decline in Indian student enrollment numbers. Despite a strong underlying demand for higher education in India, the overall slowdown in outbound student mobility partly reflects a market correction following enrollment spikes in 2022 and 2023, combined with tighter visa restrictions that have reduced demand from lower-qualified students.
Meanwhile, Indian students are increasingly turning to alternative study destinations. Indian government data reveal significant growth in Indian student numbers from 2022 to 2024 in:
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Germany: +68% (20,700 to 34,700)
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Russia: +59% (19,800 to 31,400)
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France: +33% (6,400 to 8,500)
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New Zealand: +354% (1,600 to 7,300)
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Ireland: +49% (4,700 to 7,000)
Uzbekistan and Bangladesh have also gained popularity, each expected to host roughly 10,000 and 8,900 Indian students respectively in 2024.
Germany’s appeal lies in its high-quality education and comparatively low tuition fees. France offers similarly affordable tuition and is actively expanding recruitment efforts in India, aiming to attract 30,000 Indian students by 2030. New French programs include French-language preparatory courses for undergraduate and postgraduate studies, as well as nearly 2,000 English-taught courses. Notably, Indian graduates with a French master’s degree benefit from a two-year post-study residence permit—a key incentive.
Russia’s affordable fees and lower entry requirements, especially in medicine, engineering, and aviation, continue to attract many Indian students.
New Zealand, known for its safety, stable policy environment, and highly ranked universities, is steadily increasing its share of Indian students. From January to August 2024, New Zealand saw a 24% increase in international student numbers compared to the same period in 2023, totaling 73,500 students.
Overall, Indian student preferences are diversifying, with the traditional “big four” study destinations facing challenges, while emerging countries capitalize on their cost advantages and supportive policies to attract more Indian students.
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