Key Highlights
Indian students are broadening their horizons, shunning the traditionally popular United States and seeking options that can be affordable, provide clarity of career and offer easier access routes. As the latest upGrad Transnational Education (TNE) Report 2024-25 notes, India saw an impressive 32.6% increase in interest in Germany, whilst the number of applications to US universities fell by 13% annually. It is an indication of a significant paradigm shift in the trends of studying abroad, which is leaning heavily towards practical, results-oriented destinations.
The US Loses Its Grip—A 13% Drop in Applications
Several decades ago, the United States was the most popular destination for Indian students. It represented about 19 per cent of applications in 2022; the figure had reached almost 60 per cent by 2023. The 2024/25 cycle has, however, changed the tide - US applications have dropped by an impressive 13.4% YoY.
Many factors are behind this declining popularity: soaring tuition fees, a growing sense of uncertainty regarding visa status, impending restrictions on opportunities to work in the post-study period, and the overall political instability that is affecting international students.
Also Read: Germany's Immigration Shift: A Catalyst for EU-Wide Reform?
Germany Emerges as the New Magnet
The appeal of Germany among Indian students has escalated to an extreme level, as the interest rate in 2022 was only 13.2% but has soared up to a staggering 32.6% in 202425.
The peculiar advantages of Germany are the anchoring of this shift:
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Affordability of tuition, particularly in the state universities; most universities have low or no tuition.
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Clear and student-friendly visa and post-study work rules that provide career security and reliable stability.
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Close connection with industry in STEM and manufacturing environments, facilitating more easily the passage into the labor market.
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The German Ambassador confirms that the number of Indian students enrolled in Germany has reached about 60,000, which is an estimated 20% increase every year.
The UAE and Middle East Gain Traction
The UAE and the Middle East in general are increasingly becoming a convenient and pragmatic study-abroad destination. In both Dubai and the Education City in Qatar, the satellite campuses of some of the leading American universities, including Georgetown, Johns Hopkins, RIT, Carnegie Mellon, and Weill Cornell, offer similar degrees, but in a culturally and more affordable environment.
Today, Indians are estimated to make up approximately 42 per cent of total foreign students in the UAE, which is a strong indicator of rising confidence in the quality and worth of these international education branches.
Also Read: Living Expenses in Germany for Indian Students: Latest Guide
Canada’s Decline and the Search for Value
Although Canada had a robust share of about 18% in 2022 of Indian student applications, the share declined significantly to about 9.3% in 2024-25. This downturn seems to be linked to the same factors influencing the US—price increases, uncertainty in visas, and anxieties over research outcomes or employment successes—which prompt students to reassess the value propositions and move toward alternatives that are more foreseeable.
Driving Forces Behind the Shift
According to the upGrad survey, which is supported by the responses of over 100,000 Indian participants in January 2024-May 2025, the leading motivations are:
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The career outcomes have surpassed long-term migration opportunities - only 19.9% of students are interested in permanent residency, and 45.7% of students refer to immediate job results as their main objective.
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College is becoming a self-sustaining activity-33 per cent of students are dependent on loans, and 28 per cent on scholarships.
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The predominant degree level is master's, and 86.5% are pursuing postgraduate studies. Management/MBA programs represent 55.6% and STEM programs represent 38.9% of the enrollments.
Broader Global Diversification Trends
Outside of Germany and the UAE, Indian students are also travelling to destinations in Europe--Austria, Malta, Portugal and Spain--to pursue cheap degrees and predictable policy concerning post-studying.
Interest in alternatives such as Russia and Uzbekistan can also be traced back to earlier trends, where diversifying portfolios on non-traditional Western destinations counts.
Implications for Stakeholders
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To students: Germany and the UAE are more transparent in ROI, affordability and direct career trajectories- attractive to those who are cost-sensitive and have short-term career goals.
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To Indian policy makers and educators: Curricula, counselling and funding models need to be changed to accommodate realistic alternatives, which enable students to be globally mobile and locally active.
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To universities in the US and Canada: Reevaluation might be required to resolve issues of cost, policy conflict, and sensitivity to the priorities of international students.
Also Read: Top 10 Highest Paid Jobs In Germany
Conclusion
The TNE Report 2024-25 is a turning point in the history of the mobility of Indian students. The formerly dominant US is losing popularity to the affordability and career focus of Germany, as the UAE becomes a practical centre through the international university branches. Canada, the best bet, is also experiencing a loss of interest. Finally, Indian students are no longer seeking prestige--but predictability, value, and clear career trajectories. Only those institutions and countries that conform to these practical expectations will become long-term destinations of choice as the diaspora diversifies across the globe.
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