Indian Students Shift Focus Abroad: Germany, UAE Lead Choices

Indian Students Shift Focus Abroad: Germany, UAE Lead Choices

Post by : Layla Badr

Sept. 5, 2025 2:07 p.m. 202

New trends in Indian students going abroad show a major shift in choices. For many years, the United States was the top dream destination for students from India. But recent data shows that students are no longer thinking about “where can I go?” Instead, they are asking, “what will this degree give me?” This change is driven by concerns about cost, career opportunities, and the growing acceptance of digital and hybrid learning formats.

A recent report by upGrad, called the Transnational Education (TNE) Report 2024–25, collected responses from over one lakh Indian students. The report shows that applications to universities in the United States have dropped by 13% compared to last year. Meanwhile, countries like Germany and the UAE are becoming more popular among Indian students. Germany’s share of Indian students rose from 13.2% in 2022 to 32.6% in 2024–25, overtaking both Canada and the United States. The UAE now hosts a large number of Indian students, making up 42% of its international student population.

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Age Groups and Cities Contributing Most Students

The survey included students of different ages:

  • 20–24 years: 47%

  • 25–29 years: 27.3%

  • 15–19 years: 11.7%

  • 30–34 years: 8.6%

  • 35–39 years: 3.4%

The top cities sending students abroad include Bengaluru, Hyderabad, Delhi, Mumbai, Pune, Chennai, Kolkata, Jaipur, Lucknow, and Indore. These cities are showing a steady rise in students looking for international education opportunities.

Germany Overtakes US and Canada

Germany has now become the most popular destination for Indian students. There are several reasons for this rise:

  • Lower tuition fees compared to the US and UK.

  • Simpler visa processes and easier entry requirements.

  • Good career opportunities after graduation.

According to the Federal Statistical Office of Germany, the number of Indian students in Germany increased from 49,500 in 2023 to nearly 60,000 in 2025.

In contrast, Canada’s share dropped from 17.85% to 9.3%, and the UK saw an 11% decline in student visas issued to Indians, from 110,000 in June 2024 to 98,000 in June 2025, according to the UK Home Office.

The United States saw a rise in applications in 2023, reaching nearly 60% of Indian students. But in 2024–25, this number dropped to 47%. The decline is linked to rising tuition fees, a weaker rupee, and concerns about a possible return of stricter visa rules under Trump-era policies.

UAE and Gulf Countries Gain Popularity

The Middle East, especially the UAE, is becoming a cost-effective and culturally welcoming region for Indian students. Cities like Dubai and Qatar host campuses of top global universities such as Georgetown, Carnegie Mellon, Johns Hopkins, and Weill Cornell. Some UK universities, like the University of Birmingham and Heriot-Watt, have opened campuses in Dubai, offering the same degrees at lower costs.

Praneet Singh, associate vice president at upGrad Study Abroad, said, “Indian students today are more intentional about their education choices. Cost, geopolitics, visa rules, and post-study job options are influencing their decisions. Traditional destinations are no longer the default. Europe, the Middle East, and APAC are emerging as smarter alternatives.”

Career Outcomes Are More Important Than Immigration

In the past, many students went abroad hoping for permanent residency. Now, only 19.9% say immigration is their top priority. The majority, 45.7%, focus on better career opportunities.

Other trends include:

  • Master’s degrees are preferred by 86.5% of students.

  • MBA and management courses increased from 30% to 55.6% in three years.

  • STEM fields (Science, Technology, Engineering, Mathematics) account for 38.6% of choices.

Within STEM:

  • Computer science, IT, and data science: 28.7%

  • Engineering: 9.9%

  • Healthcare and pharma: 5.8%

Popular emerging fields include robotics, artificial intelligence, fintech, cloud computing, and biotechnology, reflecting the industries shaped by Industry 4.0.

Most Popular Fields and Destinations

Master’s Level Preferences:

  • Germany: MBA/Management, Engineering, Computer Science

  • USA: Data Science, AI, MBA (STEM)

  • UK: Data Science & AI, MBA, Finance

  • Dubai: Data Analytics, Project Management, Smart Cities

Bachelor’s Level Preferences:

  • Germany: Computer Science, Business Administration, Engineering

  • USA: Computer Science, Data Science & AI, Engineering

  • UK: Data Science & AI, MBA, Finance

  • Dubai: Engineering, Business Administration, Computer Science

  • Australia: Information Technology, Business Analytics, Commerce & Accounting

Academic Backgrounds

Among students going abroad:

  • Engineering degrees: 44%

  • Commerce degrees: 19%

  • Science and arts: 37%

Although postgraduate studies dominate, more students are now heading abroad directly after school. Parents are supporting early exposure to international education to help their children adapt to global environments.

Budget and Funding

Budget plays a key role in decision-making:

  • ₹10–20 lakh: 40% of students

  • ₹20–30 lakh: 34%

  • ₹30–40 lakh: 15%

  • Above ₹40 lakh: 11%

Students fund their education in different ways:

  • Loans: 33%

  • Scholarships: 28%

Cost is not seen as a barrier but as an investment in employability and career growth.

Acceptance of Hybrid Learning

Hybrid and digital learning formats are gaining popularity. Over 70% of Indian students are now open to hybrid learning, combining online and in-person study. This trend is driven by cost savings, digital fluency, and flexibility, especially for younger students.

The choices of Indian students going abroad are changing. The United States is no longer the automatic first choice. Countries like Germany and the UAE are emerging as leading destinations due to lower costs, easier visa policies, and better career outcomes. Students now prioritize career growth, employability, and practical benefits of degrees rather than immigration prospects.

With more students choosing hybrid learning, taking strategic decisions based on budget and future career paths, and exploring new fields like AI, robotics, fintech, and biotechnology, the landscape of Indian students studying abroad is shifting rapidly. Parents and students alike are looking for education that is future-ready, cost-effective, and globally recognized.

Indian students today are making intentional and informed choices about their studies abroad, marking a clear shift from tradition-based decision-making to career-first and value-driven education planning.

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