75% of India's smaller-city students prefer Germany for studies: Report

A TerraTern survey found students from smaller Indian cities are prioritising affordability, jobs and migration pathways over traditional destinations

Germany is emerging as a preferred study-abroad destination for students from India’s Tier-2 and Tier-3 cities, according to a new survey by global talent mobility platform TerraTern, as students increasingly prioritise affordability, job prospects and long-term migration pathways over traditional choices such as Canada.

 

Key highlights of the survey:

 

Germany: 75 per cent of students chose Germany as their preferred study destination

United States: 68 per cent

United Kingdom: 62 per cent

Australia: 55 per cent

Canada: 50 per cent

 

The survey, released on May 5, studied responses from more than 2,800 students and early-career professionals aged between 24 and 35 across cities including Jaipur, Ludhiana, Chandigarh and Dehradun in the North; Lucknow, Patna and Bhopal in Central and East India; Surat, Vadodara and Indore in the West; and Nagpur, Coimbatore, Mysuru, Visakhapatnam and Warangal in the South.

   

The report found that students from smaller cities are now approaching overseas education in much the same way as their counterparts in metro cities, with a stronger focus on employment outcomes and return on investment.

 

Germany gains popularity among students

 

According to the survey, Germany’s appeal is being driven by lower or tuition-free education costs, its industrial economy and structured post-study pathways for international students.

 

The findings come at a time when destinations such as Canada are seeing reduced interest among some Indian students due to rising education costs, visa-related uncertainty and concerns around post-study employment opportunities.

 

The TerraTern survey found that 78.9 per cent of respondents were interested in studying abroad, though their priorities have shifted from degrees alone to career-linked outcomes.

 

Among the respondents:

 

• 55 per cent said cost and job opportunities were the biggest barriers to studying abroad

 

• 77 per cent said they were exploring international job opportunities alongside education plans

 

• 69 per cent said post-study employment prospects were a major factor before applying

 

The study also found that fear of visa rejection ranked above financial concerns for many students, pointing to growing interest in countries perceived to offer clearer migration pathways.

 

Technology reshaping access to overseas education

 

The report said students from Tier-3 and Tier-4 cities are increasingly using AI-powered tools to assess eligibility, compare destinations and understand visa processes.

 

According to the survey, this has widened access to overseas education opportunities beyond metro cities, where counselling services have traditionally been concentrated.

 

“We are seeing a clear shift in how young India approaches global opportunities. Germany is gaining strong traction because it aligns closely with what students are now prioritising, career outcomes, affordability, and structured pathways,” said Divyansh Chaudhari, founder of TerraTern, a global talent mobility platform.

 

“At the same time, AI is making these opportunities more accessible to students beyond metro cities,” he said.

 

The survey said students are increasingly evaluating destinations based on employability, immigration systems and financial returns, rather than academic reputation alone, with smaller cities expected to play a larger role in shaping outbound student mobility from India.

 

A similar trend had emerged in a December 2025 report by Leap Scholar, which found that Germany recorded a 377 per cent year-on-year rise in interest among Indian students, up from 219 per cent the previous year.

 

The same report found that New Zealand recorded a 2,900 per cent year-on-year jump in interest, rising from 6 per cent earlier, driven partly by immigration rules allowing international graduates to stay and work for up to three years after completing their studies.

 

The United Arab Emirates saw a 5,400 per cent increase in interest compared with 7 per cent in the previous period, with lower education costs and easier access cited as major reasons.

 

“It’s no longer a question of affordability only; it’s also about what the return is after the degree. The data shows students are making calculated decisions based on Return on Investment (ROI), not just prestige,” said Arnav Kumar, co-founder of Leap Scholar.