The number of Indian students opting for higher education in the United States, United Kingdom, and Canada has fallen sharply by 40% in 2024, signaling a notable shift in global student mobility trends. As these traditional destinations experience a downturn in interest, alternative countries such as Germany and New Zealand are witnessing substantial growth in Indian student enrollments. These emerging destinations are gaining ground due to more stable immigration policies, lower education costs, and better post-study work opportunities.
According to data cited by the ICEF Monitor, figures from the Indian government indicate a 15% decline in the total number of Indian students studying abroad in 2024 when compared to the previous year. Among the traditionally popular countries, Canada saw the steepest drop, with Indian student numbers plunging by 41%, from 233,500 in 2023 to 137,600 in 2024. The United Kingdom followed with a 28% decrease, while the United States experienced a 13% drop. Australia also saw a 12% reduction. Collectively, these nations accounted for 72% of Indian students abroad in 2024, although their overall share is clearly diminishing.
The decline is attributed to various interconnected factors, most notably the increasing cost of tuition and more restrictive visa conditions. For Indian students, who typically seek not just academic excellence but also work experience and pathways to immigration, these evolving challenges in major destinations have become deterrents. The depreciation of the Indian Rupee against the US Dollar has further exacerbated financial pressures, making higher education in these countries even more burdensome.
As ICEF Monitor notes, Indian students are now being drawn toward destinations that offer affordability and clearer post-study career pathways. Germany and New Zealand, in particular, have emerged as major beneficiaries of this changing landscape.
Germany saw its Indian student population rise dramatically by 68% from 2022 to 2024, increasing from 20,700 to 34,700. This surge is credited to Germany’s reputable educational system, low tuition costs, and favorable policies around post-study employment. New Zealand, meanwhile, recorded an even more dramatic rise. The number of Indian students in the country skyrocketed by 354% in the same period—from just 1,600 students in 2022 to 7,300 in 2024.
As per ICEF Monitor’s report, New Zealand has become the most inviting English-speaking destination for Indian students, due in part to its flexible visa procedures and a secure living environment. The country’s well-regarded education system and the availability of graduate work visas have made it a strong contender for Indian students seeking both quality learning and future employment prospects.
A key contributor to the downturn in the US, UK, and Canada is the ongoing tightening of immigration regulations. As highlighted by ICEF Monitor, policy shifts—especially those under President Donald Trump’s administration in the US—have led to a climate of uncertainty for international students. The challenges in bringing family members, securing post-graduation work rights, and transitioning to permanent residency have collectively made these nations less appealing.
Additionally, the fluctuation of currency exchange rates has impacted affordability. The falling value of the Indian Rupee against the Dollar has led to an increase in effective education costs, even when tuition rates themselves remain unchanged. Eela Dubey, co-founder of EduFund, emphasized this point in her comment to ICEF Monitor: “Rupee depreciation acts as hidden inflation for Indian students aspiring to study abroad, significantly increasing the cost of education, even if universities do not raise tuition fees.”
In contrast, countries like Germany are drawing Indian students with promises of high-quality education at a fraction of the cost, along with a more predictable and student-friendly policy environment. Similarly, New Zealand’s rising popularity is being fueled by its reputation for safety, its supportive visa structure, and long-term prospects for students post-graduation.
Experts argue that the change in student preferences should not be viewed as a total collapse of interest in the Big Four destinations, but rather a rebalancing of priorities. Maria Mathai, founder of MM Advisory Services, told ICEF Monitor that “students are responding pragmatically to shifting costs and changing visa rules,” noting that the trend reflects a “recalibration” rather than an outright “exit” from traditional destinations.
Today’s Indian students are more strategic in evaluating where to study. They are considering not only academic rankings but also work options after graduation and the consistency of immigration rules. As Mathai explained, “Our destination maps now have layered overlays – visa stability indices atop rankings.”
This transformation highlights a broader shift in the mindset of Indian students. The decision-making process now includes questions around economic feasibility, visa reliability, and long-term career opportunities, rather than focusing solely on prestigious university names.
India, with its vast pool of students seeking education abroad, will continue to play a major role in global education dynamics. But the way Indian students approach studying overseas is evolving. The demand remains strong, but students are now seeking countries that offer a more comprehensive package—academic excellence, cost-efficiency, safety, and long-term stability.
As such, countries like Germany and New Zealand, which provide favorable policies and affordability, are expected to keep expanding their market share in the coming years. These destinations are perceived not just as educational centers, but also as platforms for broader career development.
On the other hand, the US, UK, and Canada will need to reconsider their strategies if they aim to sustain their appeal to Indian students. With the global education market becoming increasingly competitive, these traditional powerhouses may find it necessary to adjust visa policies and affordability options to align with the changing preferences of international students.
Ultimately, the shift represents a new chapter in the story of Indian student mobility. It reflects an increasingly discerning student body that is prioritizing not just academic reputation, but also real-world outcomes and security. Countries that align with these needs are likely to emerge as new leaders in international education.